I'm curious how / what changes a stock with a very low PEG to have a price jump, causing a higher PEG.
In this case Apple has a P/E of 11.5 - 12 when you consider its 80B cash vs. 350B price. 8 quarters ago, they had 45% yoy earnings growth (quarter over quarter). That increased linearly in the last 8 quarters, to 125% yoy earnings growth in the last quarter.
When I've talked to some other "regular folk" about Apple, they say "their stock is really expensive" (only looking at the $400 price). So I believe a split would be helpful, but how helpful? Perhaps related, if Apple keeps generating tremendous cash, will it almost be forced into a dividend situation, putting them into a different "category" and view? In any case, since I've never seen a company with such a low PEG (that's readily understandable to the masses, vs something like a new biotechnology, etc), I'm curious what's going on and what might change. Have you ever seen a company with a very low PEG, suddenly shift?
Perhaps put another way, what does Apple need to do, to raise this ratio. Or, do they want it very low? Is this typical of companies with very low PEGs?
P.S. AMAZINGLY, as I am writing this post, I am watching the financial news and am hearing: "Apple has reached a new all time high." I wonder how many times they have said this as Apple has broken through one high after another the last several years, simply increasing in price. These statements must affect the minds of the viewer, "geeze, they're at an all time high ... I should have gotten in sooner ... ... ...). They're not coming on the news and saying, "Apple is at an all time low!!!". :-) With a PEG of around .2 - .1.
E.g. One can see price growth in the lower graph, and P/E in the upper. Notice the previous P/Es of 45, and then low P/E during market crash.