Charting Apple at $600: a PE Ratio Alongside Tired Old Companies with Flat Sales

Apple’s (AAPL) third-quarter results, and the launch of its junior iPad, apparently underwhelmed investors, as the gadget maker’s stock swooned since mid-September.

AAPL Chart

AAPL data by YCharts

Fair enough. A company that has surprised on the upside so many times, and so outlandishly, is bound to disappoint sooner or later. But is this really where Apple belongs trading – alongside, based on its PE ratio, such no-growth companies as pharmaceutical makers Eli Lilly (LLY), Sanofi (SNY) and GlaxoSmithKline (GSK)?

AAPL PE Ratio TTM Chart

AAPL PE Ratio TTM data by YCharts

AAPL Revenue Quarterly YoY Growth Chart

AAPL Revenue Quarterly YoY Growth data by YCharts

Or how about alongside yesterday’s tech giant, companies milking old franchises but unable to generate substantial sales growth – International Business Machines (IBM), Microsoft (MSFT), Oracle (ORCL)?

AAPL PE Ratio TTM Chart

AAPL PE Ratio TTM data by YCharts

AAPL Revenue Quarterly YoY Growth Chart

AAPL Revenue Quarterly YoY Growth data by YCharts

Or alongside heavy industrial companies, ones whose sales mirror the economy, like 3M (MMM), Siemens (SI) and Union Pacific (UNP)?

AAPL PE Ratio TTM Chart

AAPL PE Ratio TTM data by YCharts

AAPL Revenue Quarterly YoY Growth Chart

AAPL Revenue Quarterly YoY Growth data by YCharts

Amazon’s (AMZN) recent sales growth is about the same as Apple’s.

AAPL Revenue Quarterly YoY Growth Chart

AAPL Revenue Quarterly YoY Growth data by YCharts

But one company builds a wider profit margin from its growth, and one seems to be selling dollar bills for 99 cents apiece:

AAPL Profit Margin Quarterly Chart

AAPL Profit Margin Quarterly data by YCharts

Either Apple’s prospects are poor, and its stock fairly priced, or all these other companies would seem by comparison overpriced.

From the editors of YCharts, which includes the just-released YCharts Pro Platinum for professional investors.

Read more articles about: Company Analysis  

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