Earlier quoted context omitted.
Goldman Sachs has a P/E ratio of 5.94. Microsoft's P/E is heavily "discounted" because it's considered a sort of swan song of easy money (the Windows and Office empire that they've coasted on). Apple's is considered the beginning of things. Stock value today isn't based on today, it's based on "tomorrow".
> Apple's is considered the beginning of things. Who says that? They could be at the top of their game right now and not see more growth and stabilizing and/or decreasing in the future. There is no way to tell, otherwise you'd be very rich already ;) > Stock value today isn't based on today, it's based on "tomorrow". Who says that? Many believe that Apple stocks are overvalued today, that's for sure. Oh, and again, t…
Conversely, the aggregate opinion of investors does has some value. Otherwise you could make a fortune betting against any stocks with high P/E ratios.
Many believe that Apple stocks are overvalued today, that's for sure.
Sure. And just as many believe it's undervalued, otherwise the current price would be lower than it is. This is true for any stock.