The Motley Fool Previous Page

Is Now the Time to Buy Apple?

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:


3-Year EPS Growth

Projected P/E



3-Year Dividend Growth

Dividend Cover








The consensus analyst estimate for this year's earnings per share is $50 (11% growth) and dividend per share is $10.60 (290% growth). N/A = not applicable; Apple started paying a dividend in 2012.

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