Apple still trades like a steel mill going out of business

With its stock at an all-time high, you might think Apple was over-valued.

My headline is borrowed, once again, from venture capitalist Marc Andreessen, who tweeted the phrase nearly two years ago, accompanied by a chart labeled “Reality Distorted.”

I’ve adapted and updated his chart to reflect today’s PE ratios and added a second factor: Operating cash flow.

[E-mail readers getting an error message, click here for the interactive chart.]

[To get the full effect, click the column headings.]

Reality is no less distorted than it was two years ago. Apple is still hauling in more billions, and (relative to its peers) getting the least respect.

Below: Trailing price-to-earnings ratios over that time.

Click to enlarge. 

My take: Wall Street still sees Apple as a hit-based company that will never have another hit. History suggests it’s more like Pixar, which only releases hits.