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Doug k asked in Business & FinanceInvesting · 10 years ago

Apple Computer's P/E Ratio?

I am looking at CNN Financials and Apple's stock is listed at $393.13 per share. I am looking at their latest full EPS number of $15.15. By my math, that is a PE of almost $26. Am I missing something in the calculation?

Doesn't that make Apple look kinda expensive?

4 Answers

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  • Anonymous
    10 years ago
    Favorite Answer

    When determining the value of a company, do more than simply taking the absolute number. For this purpose, you can do some comparison with other technology companies, such as Microsoft, Dell etc. How'are their PE ratios compared to Apple. Also, look at the historical PE ratios for Apple. From this, hopefully you can make your own judgment as to whether Apple stock is too expensive.

  • 10 years ago

    I show there EPS (ttm) as just over $25 which puts their P/E (ttm) at about 15.5.

    Their forward P/E based on earnings expectations for the next twelve months indicates a P/E of just over 12. That seems very cheap to me.

    Here is an article that explains P/E very well and also happens to have the numbers (EPS and P/E for Apple for July 22, 2011) and a link as well.

    http://familymanfinance.blogspot.com/

  • JoeyV
    Lv 7
    10 years ago

    It's a perfect company. Of course it's expensive. I'm not buying (but I would never short either).

  • ?
    Lv 7
    10 years ago

    It's not expensive when its growing like crazy. The p/e is on yahoo finance, it's 15.56

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