Apple's fiscal year ends in September, so our analysis will be for a six-year growth rate from that starting point. Our capital-asset-pricing model's inputs are beta, a measure of expected volatility in a moving market; a price-to-earnings (P/E) ratio of some flavor, and the most recent estimate projection. Since beta should be unaffected by an earnings announcement, we'll use the historical beta of 1.58.
Reuters Estimates says that 16 of the 23 analysts who cover the computer company updated or reiterated their per-share earnings estimates on Thursday. Taking a simple average of only the 16 post-announcement estimates, the unofficial consensus 2006 earnings estimate is $2.15 a share, with the highest projection for $2.26 and the lowest for $2.11; our analysis, then, will use $2.15 a share as our baseline.
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