makes no sense at all, America's Company of world technology Innovation, driver of so much business, pays more in Taxes than Google makes---stores are packed every time I go to one, the products are outstanding, the service exceptional, in fact incredible support, the best on the planet---and it gets NO valuation of comparable....I can't believe we are back at these levels---some analyst picks up on a data point and writes a 40pg downgrade to sell to investors....
I brought up this point on the PE comparison between these two companies yesterday.
More importantly though is the fact that the average PE ratio is roughly 15~16. That essentially means that Apple is undervalued by more than 50% of the entire stock market.
When you take into account their earnings (record holding), market cap (either #1 or #2 depending on the day) and their historical dividend Apple is actually approaching being the most undervalued stock in the entire world (excluding no one).
Every day they add millions of dollars to their balance sheet and every day the PE ratio falls (regardless of stock price). The cash pile keeps growing and that is a fact that can only be ignored for so long.
GE is a powerhouse of industrial innovation. WHY ON EARTH would Apple be worthy of GE's P/E ratio?
GE has always been groundbreaking.
Apple's copies other people's ideas and makes them a little better & profits of of "trendyness." While they are making a lot of cash, there is a history of cash cows self-destructing when the innovation has gone away. Apple has lost it's innovation. Unless they come out with something new and groundbreaking their run is up.
Apple is priced correctly today, but each day that price can and should be slipping lower until they give us something new.