Apple announced earnings last night. The stock is taking some beating. Guess, this is some breather, for IMHO, I would venture to say AAPL is cheap. on yahoo finance, it's forward Forward P/E (fye Sep 26, 2011) is listed at 17.64x (or an implied EPS of 18). However, one has to knock off the 51 bn cash from the Market cap of 290 bn to arrive at the true P/E.
If we do just that, the market cap goes down to 240 bn. With 913.56 mn shares, the net profits would be around 16.8 bn (# of share x EPS). This suggests a more amenable P/E of 14.3x for FY 11 - I would say it's a steal for a company growing at a break-neck speed.
Disclosure: No Positions