[djajshgsjja]

If you compare Apple’s PE ratio to the S&P 500 and tech companies in particular, you’ll find that the market is already expecting relatively low growth.

[fauigerzigerk]

And it has been expecting that for a long time. 5 years ago Apple's PE was below 12. Since then the stock price has tripled.

Now their PE is 18, so the market is expecting Apple to grow a lot faster in the next 5 years than it did in the last 5 years.

https://ycharts.com/companies/AAPL/pe_ratio

We'll see if the market gets it right this time or at least not as horribly wrong as in the past.

[djajshgsjja]

The PE ratio of the entire stock market has increased by a lot during that period: http://www.multpl.com/table

You could say that everyone has higher growth expectations, or perhaps capital is just cheaper?

[fauigerzigerk]

Capital has not become cheaper. On the contrary, interest rates are on the way up.

But I don't think it's growth expectations that are driving stock prices either. It feels more like investors shudder at the thought of owning any of the alternatives to US blue chips.