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a P/E of 9-10 is pretty low, compare it with other large companies and you will see

• TheAnimus 14y ago
  > a P/E of 9-10 is pretty low, compare it with other large companies and you will see Only if your expecting growth. People like to use stat trading as if its simple. Just because a company is healthy and has a P/E ratio below 10 doesn't make it a buy. In fact you can do some fun stuff with historic P/E values, implied volatility, realised volatility and price. Basically Implied Vol is what the options market (and other derivs) is suggesting the future value of the price will be. Realised is what it was historically, if you have the data points you can look at how the convergence of those worked. P/E is another kind of market sentiment, it suggests how much growth a company is expected to achive. When you look at sentiments vs announcements you can get a simplistic view of how sentiments have historically matched reality. When you start looking at that, Apple is an interesting stock, I wouldn't suggest anyone to buy it based on these things. Source: Desk 'geek' bitch for a very sucsessful greybox trading fund, who after two years earnt comparatively jack shit.