In 2007 it was trading for nearly 50 times earnings. Today it's 10. What happened?
Perhaps the most succinct commentary on Leonid Kanopka's naive claim that Apple (AAPL) is a "bubble ready to burst" (see "A few fries short of a Happy Meal") was Nicu Mihalache's plaintive response: "Do you know what P/E is?"
The price-to-earnings ratio, as every trader knows, is the simplest way to gauge how the market values a company. A high P/E -- MORE
