Apple’s Absurdly Low P/E Ratio

Fortune has a short post by @philiped today that calculates Apple’s PEG ratio (price / earnings / earnings growth, a favorite measure of Peter Lynch) to be below 1.0, and far below companies such as Dell, Amazon, and Cisco, implying that it’s undervalued (same for Google and IBM).

In other words, Apple’s profit growth is explosive, but as I write this, its P/E is still in the mid-teens (currently 15.0). Google’s is 18.8. The S&P 500 overall is 22.6. Amazon’s is 81.3.

This means either the market is expecting Apple’s growth to slow dramatically, or it believes Apple’s future earnings to be highly risky – or both. Whatever the case, Apple’s stock is down 10% in the past four months.

This is absurd. Would anyone in his right mind actually bet against Apple’s earnings growth right now, given the sales it’s posting for iPads, iPhones, and iMacs? If this is a Steve Jobs story, it’s hugely overblown.

Prediction: Apple will continue to outperform the S&P and tech peers like Amazon over the next 6, 12, and 24 months. I’m putting reminders to check back into my calendar.

Buy now.

47 thoughts on “Apple’s Absurdly Low P/E Ratio

  1. Pingback: Gloating, Part 1 | Rampant Innovation

  2. The gambling generally known as business looks with austere disfavor upon the company generally known as gambling.
    Hell, there won’t be any rules here – we’re trying to accomplish something.

    • If you’re over 18 and have a valid credit card, no prloebm, just check right in!Good luck, and the link below is to a webpage titled What Hotels And Motels Can Do

    • She’s a very beautiful baby. Forget what [who cares] says. It goes to show whoever he or she is must be a negative person. All you ever hear from who cares is grippy complaints. We are glad to hear some good news for a change.What I can’t understand is if your site is so bad why does who cares always log on. If you don’t like it stay off. The rest of us do like it and yh;78#&21tas all that counts.

  3. Pingback: A Quarter Trillion Dollars | Rampant Innovation

  4. Hi there would you mind letting me know which web host you’re using?
    I’ve loaded your blog in 3 completely different browsers and I must say this blog loads
    a lot faster then most. Can you suggest a good hosting provider at a honest price?
    Many thanks, I appreciate it!

    • Etsy | West Elm Holiday Pop-Up Event on December 1. You may remember this design from this post {here}. It&812#7;s been a while in the designing mostly because I was having some trouble with the inks I

  5. I’m extremely impressed together with your writing abilities and also with
    the format for your blog. Is that this a paid theme or did you modify it
    your self? Anyway keep up the nice high quality writing, it is rare to peer a nice weblog like this one these days..

    • Det vore väl konstigt om inte författare googlar pÃ¥ sig själv! Det gör ju vem som helst (och blir fÃrcrksä¶kt över vilka spÃ¥r man lämnar i cyberspace). 😉

  6. Hi there, just became aware of your blog through Google, and
    found that it’s truly informative. I am gonna
    watch out for brussels. I’ll be grateful if you continue this in future.
    A lot of people will be benefited from your writing.

    Cheers!

    • Pentru Naomi,Poti fi mai explicita te rog? Nevoia de ce, pentru ce? &#v&80;Ne8oia2#2221; nu este de cele mai multe ori dorința noastră de mai mult/multe? Uitam sa ne punem limite, sau trecem peste cele puse si le punem pe seama nevoii! Sunt multe semnale de alarma pe care din nefericire le punem in dosarul ” nu mi se va întâmpla mie”! Domnul este de partea celor credinciosi, dar cand nu ascultam de El, ne disciplineaza, si ne doare, si daca nu învățăm ne disciplineaza pentru ca ne iubeste! El e bun!

  7. of course like your web site however you need to check the spelling on quite
    a few of your posts. A number of them are rife with spelling problems and I find it
    very bothersome to inform the truth on the other hand I’ll
    surely come back again.

  8. Pretty section of content. I just stumbled upon your weblog and
    in accession capital to assert that I get actually enjoyed account your
    blog posts. Anyway I’ll be subscribing to your augment and even I achievement you access consistently
    rapidly.

  9. I could learn about this all day!! With any luck , you’ve got an RSS feed I could
    possibly sign up for. I had recently been seeking on the internet with regard to
    information relevant to lead generation in real estate.

    • Louisiana Public Broadcasting, no matter how many gimme shows they host, fail to provide enough senu/gwcrafting/qiilting shows for me. We do have Nancy and Martha Pullen, but that’s all!

    • Now I’m going on my first tour in may from st. Charles Missouri to Colorado Springs. Now the thing I’m most scared of is weather. I’m not sure what I would do if I got caught out in the middle of nowhere in Kansas and thee was a tornado warning or a thunderstorm. I’m not afraid if people and animals are fine as long as you leave them alone.

  10. I do not know if it’s just me or if everyone else experiencing problems with your website.

    It appears like some of the written text within your posts are running off the screen. Can someone else
    please provide feedback and let me know if this is happening to them as well?
    This may be a issue with my web browser because I’ve had this happen before.
    Appreciate it

  11. Pretty element of content. I just stumbled upon your
    weblog and in accession capital to assert that I get actually enjoyed
    account your weblog posts. Any way I will be subscribing
    in your feeds and even I success you get right of entry to persistently quickly.

  12. An interesting discussion is definitely worth comment.
    I do believe that you ought to write more on this subject matter, it might not be a taboo matter but typically people do not talk about these subjects.

    To the next! Kind regards!!

    • Dans le même temps Kvitova a eu pas mal d&i8n17;occas#o2s de double-breaker Sharapova mais n’a pas su en profiter.Même chose en début de 3ème… Maria ploie mais ne rompt pas.

  13. What i do not understood is in reality how you’re not really
    much more neatly-preferred than you might be right now.
    You’re so intelligent. You know thus significantly in the case
    of this matter, made me personally believe it from a lot of numerous angles.
    Its like women and men are not interested except it is one thing
    to do with Girl gaga! Your individual stuffs nice. At all
    times care for it up!

  14. There are many other programs based on exactly the same means of generating money through links but this kit is exclusive rolling around in its own way.
    ‘yourname’ is your username for Google+ or some other name associated with all the account.
    Google Plus caught us by surprise when it launched, this also update by Google about
    the check-in offers will help tilt our mobile marketing compass a substantial
    number of degrees.

  15. You actually make it seem really easy along with
    your presentation but I to find this topic to be really
    something that I believe I might by no means understand. It kind of feels too complicated and extremely wide for me.
    I’m looking forward for your next submit, I will try to
    get the dangle of it!

    • Wonderful story, reckoned we could combine a few unrelated data, nehrvteeless really worth taking a look, whoa did one learn about Mid East has got more problerms as well

  16. Hello I am so delighted I found your blog page, I really found you by accident, while I was
    researching on Yahoo for something else, Anyways I am here now and would just
    like to say cheers for a remarkable post and a all round enjoyable blog (I also love the theme/design), I don’t have time to browse it all
    at the moment but I have saved it and also added your RSS feeds, so
    when I have time I will be back to read a great deal more,
    Please do keep up the excellent jo.

  17. L’accouchement sous X annule tout droit de la mère sur l’enfant.Les grands-parents s’immiscent dans ce droit d’anonymat , la décision du juge semble donc contraire à la loi.Quand l’auteur de l’article écrit qu’avoir trois couples de grands-parents « est une riuesseh &raqco;, il glorifie une aberration.

  18. Plenty of FuN among other activities. I have some sort of open mind, am giving and adore to experiment with free live sex chat a myriad of playful ideas, so you shouldn’t be shy. naughty girls Allentown New York Fountain Michigan, Dunlap CDP, Jewett OH, Sherwood Manor, Spring Mill city, Shloigehnuse Pennsylvania PA US United States, Portrush , Lake Heritage CDP Fountain Michigan

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s