This Chart Is Driving Apple Bulls Crazy
 

http://e.businessinsider.com/public/482186

Apple's price to earnings ratio is at a relatively paltry 14 right now, and it's driving Apple bulls crazy.

The chart below, which shows Apple's shrinking PE, from Apple analyst Andy Zaky has been passed around for the last week. (At the time Apple's PE was 13.3.)

What's wrong with this chart?

Zaky explains: "Now even though Apple?s growth has far and outpaced the growth of Oracle (16.35 P/E), Amazon (96.15 P/E), Google (19.19 P/E), Cisco (15.11), Qualcomm Inc. (20.62), Amgen, Inc (13.53), Comcast (15.11 P/E), IBM (13.95 P/E), Chevron (13.50), Johnson & Johnson (14.94 P/E), Procter & Gamble (15.49 P/E), and AT&T (13.91 P/E), the stock trades at a far lower valuation relative to these top holdings on the NASDAQ-100 and S&P 500. Some of these companies have actually contracted in 2011. Yet, the market values the earnings out of these companies on the order of 4-5 times more in some cases than they value the earnings out of Apple."

Of course, there's more than one way to value a stock. If you value it based on trailing free cash flow, it's arguably priced fairly, says our Henry Blodget.

Does the fact Apple markets their products to the dumb and trendy affect the price of the stock? Perhaps people do not see this trend continuing indefinitely. I have been shorting since the stock was above 400. Thought it would be lower now but I am being patient.

Out of all the companies to short, AAPL wouldn't be one I would choose.

Is it because of Steve Jobs death?

Sometimes a company is based on the owners...