What "outsized PE ratio?"
The point is that if AAPL were properly valued, it stock price would be more than three times what it is today.
Sometimes, Okie, it is better to keep your mouth shut, and just be thought a fool, than to open it and remove all doubt. You just shouted out your status.
Instead of making excuses for piss poor product introduction cycle in 2015 and an even poorer one expected in 2016 it would be best to focus on the facts. Any Company with 700bil net worth and 200bil cash on hand and looses 200bil in the same year is grossly mismanaged. In effect the PE is based on 500bil and nearly half the future of apple disappeared this year. They have all the cash they need but they just can’t seem to find anything to invest in. Or is that 200bil gone?
Problem with your P/E ratios is that, most investors don’t buy a stock because of the earnings they’ll be getting from their investments. Most people who invest will be looking to ‘get rich’ via expectations of a stocks price going up.
Earnings at Apple are great and fantastic, but, the stock and the market cap are what people (investors) get excited about.
So, if the stock is what gets people excited, then the excitement subsides when it’s very noticeable that Apple is mostly a one-trick pony when it comes to sales and earnings. If the iPhone were to lose its appeal (which will happen sooner or later) and just became another good smartphone, then, Apple would be in deep ‘sheet’ when it comes to its market cap and company value, which is what is worrying market analysts. Right now, besides the Macs computers, Apple diversification can be spelled with on letter of the alphabet, that being ‘i’, or the iDevices. Not a great prospect.