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Technology Stocks : Apple Tankwatch -- Ignore unavailable to you. Want to Upgrade?

To: Cogito who wrote (16457)	1/31/2012 9:10:19 PM
From: pyslent	Read Replies (1) \| Respond to of 32692

" Apple's P/E ratio will most probably come down as their growth rate slows." Actually, i disagree. Apple's PE already reflects no growth. On a trailing basis, Apple's PE is 13. On a forward basis, Apple's PE drops to 9.7. Subtract out Apple's cash hoard, and those ratios drop to 10 and 7.6. Contrast those PE ratios with Amazon (100) or Google (19). Does Apple's valuation metrics really seem like the market anticipates great growth? Apple is priced like it will make $50/sh in perpetuity, not like a company that is growing it's bottom line by 70% every year.