Is Apple Inc. (AAPL) Doomed?

Where we go from here

After losing nearly half its value from its high of $702 per share, it’s abundantly clear that fear over Apple’s future has morphed into full-blown panic. For all intents and purposes, its current valuation suggests the market expects no future growth whatsoever from Apple.

Perhaps the bears are right. Maybe Apple really has lost its competitive edge. Maybe the i-devices we once couldn’t get enough of have forever gone out of style. But even if that’s true, investors need to consider whether Apple is cheap regardless.

Even if Apple’s earnings-per-share decline dramatically — say, 25% — Apple would still be trading for only 12 times EPS. Moreover, Apple will very likely increase its dividend in time for its next quarterly payout, and will probably yield well over 3% very soon.

At these prices, investors need to ask themselves whether they’ve got the courage to hold their noses and scoop up what appears to be a screaming bargain.

The article Is Apple Doomed? originally appeared on Fool.com and is written by Robert Ciura.

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