Here is a very interesting observation from a post written by Business Insider’s Pascal-Emmanuel Gobry in trying to explain why everyone hates tech stocks:

“Apple meanwhile has a P/E ratio of 14. The S&P 500 has a ratio of 21 [cyclically adjusted]. According to finance 101, P/E is a measure of expected growth. What it means is the market is telling us that it expects Apple–a company that grew 70% last year and is wallopping the competition in gigantic markets where it’s just getting started–to grow much slower than the average of the biggest (ie slowest growing) companies in America.”

Crazy traders…

Source: Business Insider

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