Valuation of apple stock

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Apple's common stock is currently trading at $130 per share. The latest quarterly earnings of Apple showed that the company earned $7 per share (i.e., EPS) in Q1, 2015. Most analysts expect this EPS to hold for Apple in 2015. Assume that Google and Facebook, two of Apple's potential competitors in US, are currently trading at P/E ratio (i.e., price/earnings) of 30 and 40, respectively. What would you say about the valuation of Apple's stock currently relative to Google and Facebook using only the P/E multiples apparoch?

Reference no: EM131066518

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