Some say Apple, some say Cupertino, while others say AAPL and a select few say Apple Inc. (NASDAQ:AAPL), but it’s all the same. What most tech investors want to know is: is Apple a buy?
Well, at least from a value standpoint, it’s very cheap.
Just to remind you, Apple Inc. (NASDAQ:AAPL) was in the news last year when it made it to the top by touching the highest market cap mark that any company has ever made, but that has no effect on Apple’s bargain basement valuation, in layman’s terms.
The PEG ratio is calculated by dividing the price-to-earnings (P/E) multiple of a company, such as Apple, by its expected earnings growth rate. In effect, this allows investors to compare stocks regardless of what Wall Street expects EPS to do in the coming years, though it’s important to note that these calculations are dependent on analysts’ forecasts.
Thus, the PEG ratio indicates whether a stock is underpriced or overpriced. Ideally, a PEG of less than 1 is considered to be good because it depicts that the growth rate of a particular company is more than its P/E ratio. However, while calculating the PEG, one should be very careful and use their best judgement; for instance, while calculating PEGs, we use expected growth rates, and as we all know, historic performance doesn’t guarantee future results.
In general, this ratio presents the “big” valuation picture for any stock, and in Apple Inc. (NASDAQ:AAPL)’s case, it’s an attractive one. We should also note that this metric does not directly measure a stock’s income-related potential, so dividend-heavy investors may want to check out some of our other analyses.
Without further ado, let’s take a look at Apple, Yahoo and the rest of the S&P 500’s cheapest members. All data, including Apple Inc. (NASDAQ:AAPL) information, is gathered from FinViz.
SEE THE LIST —>
No. 20: Jabil Circuit, Inc. (NYSE:JBL)
PEG Ratio: 0.84
Sector: Technology
Industry: Electronic Instr. and Controls
No. 19: Diamond Offshore Drilling Inc (NYSE:DO)
PEG Ratio: 0.84
Sector: Energy
Industry: Oil Well Services and Equipment
No. 18: National-Oilwell Varco, Inc. (NYSE:NOV)
PEG Ratio: 0.84
Sector: Energy
Industry: Oil Well Services and Equipment
No. 17: Assurant, Inc. (NYSE:AIZ)
PEG Ratio: 0.83
Sector: Financial
Industry: Insurance (Life)
No. 16: Whirlpool Corporation (NYSE:WHR)
Photo Credit: Mario Spann
PEG Ratio: 0.82
Sector: Consumer Cyclical
Industry: Appliance & Tool
No. 15: The Western Union Company (NYSE:WU)
PEG Ratio: 0.81
Sector: Services
Industry: Business Services
No. 14: Marathon Petroleum Corp (NYSE:MPC)
PEG Ratio: 0.80
Sector: Energy
Industry: Oil and Gas Operations
No. 13: American International Group Inc (NYSE:AIG)
Photo Credit: eflon
PEG Ratio: 0.78
Sector: Financial
Industry: Insurance (Prop. and Casualty)
No. 12: Abercrombie & Fitch Co. (NYSE:ANF)
Photo Credit: Prayitno
PEG Ratio: 0.76
Sector: Services
Industry: Retail (Apparel)
No. 11: Joy Global Inc. (NYSE:JOY)
PEG Ratio: 0.74
Sector: Capital Goods
Industry: Constr. and Agric. Machinery
No. 10: Southwest Airlines Co. (NYSE:LUV)
Photo Credit: Stuart Seeger
PEG Ratio: 0.72
Sector: Transportation
Industry: Airline
No. 9: Caterpillar Inc. (NYSE:CAT)
PEG Ratio: 0.72
Sector: Capital Goods
Industry: Constr. and Agric. Machinery
No. 8: WellPoint, Inc. (NYSE:WLP)
PEG Ratio: 0.69
Sector: Financial
Industry: Insurance (Accident and Health)
No. 7: Harman International Industries Inc. (NYSE:HAR)
Photo Credit: Tiago Cassol Schvarstzhaupt
PEG Ratio: 0.66
Sector: Consumer Cyclical
Industry: Audio and Video Equipment
No. 6: MetroPCS Communications Inc (NYSE:PCS)
PEG Ratio: 0.53
Sector: Services
Industry: Communications Services
No. 5: Yahoo! Inc. (NASDAQ:YHOO)
Photo Credit: gaku.
PEG Ratio: 0.51
Sector: Services
Industry: Business Services
No. 4: Apple Inc. (NASDAQ:AAPL)
Photo Credit: Ivette Quiñónez
PEG Ratio: 0.51
Sector: Technology
Industry: Computer Hardware
No. 3: Apollo Group Inc (NASDAQ:APOL)
PEG Ratio: 0.49
Sector: Services
Industry: Schools
No. 2: The Goodyear Tire & Rubber Company (NASDAQ:GT)
PEG Ratio: 0.45
Sector: Consumer Cyclical
Industry: Tires
No. 1: ENSCO PLC (NYSE:ESV)
Photo Credit: Nigel Williams
PEG Ratio: 0.41
Sector: Energy
Industry: Oil Well Services and Equipment
