[CydeWeys]

> That would be correct if they were value companies throwing off discounted cash flow but both Google and Apple are priced as growth companies.

AAPL's P/E ratio as I write this is 10.26. I would strongly make the argument that Apple is thus NOT priced as a growth company.

[simonh]

Which shows you how much the market knows. Apple's PE ratio was 11 back in 2009.

In fact the first years of the iPhone corresponded with a precipitous plunge in their PE ratio as their revenues rose rapidly, but their share price was dragged kicking and screaming along behind them.