I have not really done much fundamental analysis before so hopefully you all can help me out.
Watching AAPL drop 25% over the past month had me thinking it was now "cheap" and a good deal to start buying but according to this PE CHART it's stock price to earnings is still near 2-year highs and appears to be above average over the past 8-9 years. So relative to itself, AAPL does not appear cheap here.
So then I started thinking, maybe AAPL is cheap relative to the index (Nasdaq) in this case. Here is a 10 year chart showing AAPL's share price is still up 100% relative the Nasdaq. Chart Link Again, AAPL does not yet look cheap.
Finally I thought maybe AAPL's PE at around 14 is "cheap" relative to all market PEs over the past 30 years. This Chart shows AAPL's PE (red x) relative to S&P500 historic PEs over the past 30 years. So here AAPL is actually start to look like a good buy as investors are paying less per earnings relative to the market average.
To me the first two charts show AAPL as being at least fair or average priced right now relative to itself and the last chart shows it to be at a discount relative to the rest of the market. Am I doing this right or can anyone offer some insight here.
Thanks.
Source for PE charts: https://www.macrotrends.net
Submitted November 30, 2018 at 09:43AM by Pennysboat https://ift.tt/2RlfrCp
