Apple (AAPL) is 'Ridiculously Cheap' at 5x Earnings - Cramer

On Mad Money Monday evening, Jim Cramer said Apple (Nasdaq: AAPL) -- not Europe -- is now the driving force behind U.S. stocks. It's all about the "iUSA," Cramer said. In other words, "the United States of Apple."

Cramer said there is an emerging consensus the earnings estimates for Apple are too low -- "criminally too low." Cramer notes the FY12 EPS consensus on Apple is $32, with a high estimate of $37. However, he sees earnings at a "whole new level." Cramer said he believes Apple could earn $45 in FY12. He also believes the company could end the year with $150 per share in cash.

Backing out the expected cash from the current stock price, Cramer sees the stock trading at "more than 5x earnings" (it's actually 5.8x using Cramer's numbers). He said when you compare this to the 13x multiple for the S&P 500 "you see the absurdity of Apple's stock price."

Cramer said Apple is "ridiculously cheap" and sees major estimates boosts. He said the stock is going "much, much higher."

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