Apple (AAPL) currently has a trailing 12-month P/E ratio of 11.09. For those interested, below is a long-term chart comparing Apple’s stock price to its P/E ratio. Throughout Apple’s huge run higher over the last decade, the stock has mostly experienced P/E contraction as a result of unbelievable earnings growth.
There was a period from mid-2006 to the end of 2007 where the stock saw its P/E expand, and there was also P/E expansion in 2009 as the world came out of the financial crisis. Since the end of 2009, however, Apple’s P/E ratio has been in a steady trend lower, falling from 22 down to 11. For those wondering, Apple’s forward P/E is currently at 11.30, just a tick above its trailing 12-month P/E.
The post Why Apple shares look like a bargain appeared first on Smarter Investing
Covestor Ltd. is a registered investment advisor. Covestor licenses investment strategies from its Model Managers to establish investment models. The commentary here is provided as general and impersonal information and should not be construed as recommendations or advice. Information from Model Managers and third-party sources deemed to be reliable but not guaranteed. Past performance is no guarantee of future results. Transaction histories for Covestor models available upon request. Additional important disclosures available at http://site.covestor.com/help/disclosures. For information about Covestor and its services, go to http://covestor.com or contact Covestor Client Services at (866) 825-3005, x703.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV