Apple Inc. (AAPL): What Does This TV Roundtable Think About The Stock?

Luckily for every Apple bull under the sun, shares of the Cupertino-based tech company are extremely cheap right now. At a forward price-to-earnings multiple below 9x, Apple trades at a steep discount to most of its aforementioned peers, including Cisco (9.9x) and Intel (10.2x). Yes, both Cisco and Intel offer more to income investors at the moment, but it’s Apple’s value potential that sets it apart.

With this in mind, we should also point out that when we account for expected earnings growth — Wall Street predicts Apple to average 18.9% annual EPS growth over the next half-decade — Apple is an even better buy. Using the PEG ratio, which is a simple acronym for the term “Price-to-Earnings Growth,” we can see that Apple sports a PEG of 0.5.

Cisco, meanwhile, is nearly three times as expensive at a PEG of 1.4, and analysts expect its EPS growth to average 8-9% a year over the next five years. Intel’s PEG, near 0.9, is a bit lower, but still above Apple, and it’s five-year expected EPS growth clocks in around 11% annually.

It’s clear that Mr. Market is valuing Apple Inc. (NASDAQ:AAPL)’s growth prospects much more along the lines of a Cisco or an Intel, but interestingly, Wall Street still holds far more optimistic EPS estimates over the intermediate term. Whether or not Apple can meet these expectations is up for debate, but if they can at least come close, it’s hard not to think there’s some value-based appreciation in store.

The article What Does the ‘Fast Money’ Roundtable Think About Apple? originally appeared on Fool.com.

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