The following table comes from Fred Hickey’s High Tech Strategist newsletter, courtesy of this weekend’s Barron’s. Put bluntly, chips aren’t cheap.
I pointed out something similar in a column this week for RealMoney. I ran a graph there of Apple Computer’s price/sales and price/earnings multiples over the last twelve years as its sales growth has slowed.
Entertainingly, and almost certainly paradoxically, the multiples have climbed as growth has slowed, suggesting that investors Apple value the (current) low-growth Apple more than the (old) high-growth Apple. Who would have thought?