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.