Read somewhere that Peter Lynch was quoted as saying that in recent times a high p/e of 40 has lost its shock value. I think the same can be said about very low p/e ratios. I've seen many good retailers have their p/e driven below 5. Many of these stocks rebounded spectacularly. Think this is noteworthy when looking at Apple. The current p/e when you back out cash is looking attractive even if you account for a big earnings decrease, but you need to put yourself in a position to potentially average down in the future.