In this idea i am trying to figure out when is the right time to buy apple based on P/S , P/E and the EMA of 55 Months!!! In order to reach my conclusions i took 5 points starting from the 08 financial crisis. However in that time apple was in super growth and high expectations mode so for sure P/S and P/E were in excess. Definitely over the last years apple's sales and net profit have become more predictable compared to 15-20 years ago.
I should also point out that metrics such as P/S, P/E etc.. are really dynamic in relation to monetary policy, so my calculations should not be taken that seriously in times like these. Right now with interest rates globally at 0% and even negative -% and tons of liquidity and young players in the market apple is more of a safe heaven rather than a simple value stock.
P/S and P/E right as we speak are deviating away from their mean but what i want to understand better is not when apple is expensive rather when is cheap!!!
Feel free to add your comments and find out together when we should buy this beautiful company. Patience is the key!
***Please note that in my calculations i have not included the latest top!!! since we are not yet sure whether the stock is going to be higher or lower in the upcoming months.
Would be interesting to see correlation of AAPL'S multiples vs the SPY or QQQ during AAPL's bottoms and tops. That would then incorporate the macroeconomics.