Here's Why Apple Stock Is Still Dirt Cheap
A company's stock price reflects investors' collective view of how much money that company will make in the years ahead. Generally speaking, when it trades at a high price-to-earnings ratio, investors expect rapid profit growth.
Conversely, when a company trades at a low P/E ratio, it often means that investors don't expect that company to enjoy rapid earnings growth.
Apple (NASDAQ: AAPL), which is arguably the world's most successful technology company, currently trades at about 15 times expected fiscal year 2018 earnings.
Source: Fool.com