“Watching Apple’s (AAPL) share price see-saw over the past three weeks — up to $644, down to $555, up to $618, down to $581 — investors might well wonder whether there’s any limit to how high or, more to the point these days, how low the stock can go,” Philip Elmer-DeWitt reports for Fortune.

“Apple’s revenues grew nearly twice as fast as Amazon’s last year. But Apple’s stock is trading this week at less than 14.3 times earning. If it were trading, as Amazon does, at 190 times earnings, it would selling for more than $7,800 a share,” P.E.D. reports. “But comparing any stock with Amazon buys you nothing but heartache.”

P.E.D. reports, “Bullish Cross’ Andy Zaky point is that there seems to be a limit to how much Apple’s P/E can be compressed. ‘In its recent history, it went to 12.6 only twice,’ he says. ‘During the financial crisis and now. And each time it led to a massive reevaluation.'”

Much more in the full article here.