Suppose You Bottom-Ticked Apple Stock: Now Whattayu Got?
Apple (AAPL) shares have rallied nearly 12% since bottoming out in mid-November, and if you were among those brave souls who bought just because others were selling – an occasional Warren Buffett tactic at Berkshire Hathaway (BRK.B) – where do you stand now?
Well, based on historical valuations, via the PE ratio, Apple looks cheap.
If you think Apple’s gadgeteers have run our of ideas, or that consumers are bored with gadgets, or that the economic indicators suggest the bottom’s going to soon fall out of the economy, then maybe Apple is overpriced, too. If you don’t believe those things, it might be pretty cheap.
Jeff Bailey is the editor of YCharts, which includes the just-released YCharts Pro Platinum for professional investors.