Alan answers a question coming from Dana of Ocala, FL. Dana writes… "My friend said that to compute the target price for Apple Computer you should multiply it by the forward P/E ratio of 11.57 and the earnings per share of 44.16, and that will leave us with a future price of $510.93. However, Yahoo Finance says the price target for Apple Computer is well over $700. How do you calculate this target price?"
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