As Apple's luster dims on Wall Street, the tech giant's stock is becoming cheaper and cheaper.
By at least one measure, Apple's stock is becoming a bargain. Its price-to-earnings ratio, a shorthand measure of value for stocks, has fallen well below the average of the broad Standard & Poor's 500 index.
“The P/E is extremely low,” said Howard Silverblatt, senior index analyst for S&P Dow Jones Indices.
As Apple's stock falls 10%, to $461.46, in early trading following Wednesday's disappointing earnings report, its P/E ratio -- based on the previous 12 months of earnings -- is down to 10.5.
That indicates a steep discount compared to the average P/E of the S&P 500 of 15.1, according to Silverblatt, who spoke with The Times before financial markets opened Thursday. (Before the market opened, Apple's P/E stood at 11.7.)