20 P/E is the edge of growth. Consider a utility with steady 5% returns + inflation is often an appealing option for people looking for steady returns. This always depends on what options are available.
Further the entire market is down which changes expectations. The Dow going from 26,800 to 23,300 would mean a drop from 1T down to ~869 billion.
Yep, people think Apple is slightly worse off now. But, Apple has been stuck as a relaticly high volatility value stock for a while. The expectation is lots of profit, but little real growth.
That... what? That's just wrong. Look upthread for your example that started this whole thing. BMW's P/E is less than 6! Toyota's is around 7. Apple is absolutely priced like a growth stock. No, it's not as high as better growth bets are, but it's absolutely not priced by earnings. It just isn't.
20 P/E is the edge of growth. Consider a utility with steady 5% returns + inflation is often an appealing option for people looking for steady returns. This always depends on what options are available.
Further the entire market is down which changes expectations. The Dow going from 26,800 to 23,300 would mean a drop from 1T down to ~869 billion.
Yep, people think Apple is slightly worse off now. But, Apple has been stuck as a relaticly high volatility value stock for a while. The expectation is lots of profit, but little real growth.