Is Now the Time to Buy Apple?http://www.fool.com/investing/international/2013/01/22/is-now-the-time-to-buy-apple.aspx Rupert Hargreaves
January 22, 2013
LONDON -- I'm always searching for shares that can help ordinary investors like you make money from the stock market.
So right now I am trawling through the market and giving my verdict on as many large-cap shares as I can. Simply put, I'm hoping to pinpoint the very best buying opportunities for today's uncertain times.
Today I am looking at Apple (NASDAQ: AAPL) to determine whether you should consider buying the shares at $500.
I am assessing each company on several ratios:
Price/earnings: Does the share look like a good value when compared against its competitors?
Price/earnings to growth: Does the share look like a good value factoring in predicted growth?
Yield: Does the share provide a solid income for investors?
Dividend cover: Is the dividend sustainable?
So let's look at the numbers:
Trading on a projected P/E of 10, Apple appears significantly cheaper than its peers in the computer hardware sector, which are currently trading on an average P/E of around 20.
In addition, Apple's relatively low P/E and double-digit growth rate give a PEG ratio of around 0.9, which implies the share price looks che