Re:Apple slips below $600 in first trading day after exec sh...
by kalid on Wednesday October 31, 2012 @12:25PM
(#4723611)
Apple's valuation growth is due to selling enormous quantities of products -- their P/E has roughly hovered around ~15 the entire time. If it were 20 or 30 then there'd be a lot of room to fall. But their P/E is about industry average... they just have a megaton of sales.
If iPhone/iPad sales decline precipitously (to ~2010 levels) then their share price should fall to roughly that amount [probably more, since it indicates something is terribly wrong and likely to decline further].
On the same scale as the growth that Apple has seen over the last 2 years.