Can’t sleep, will jot down some notes. Apologies for being unorganised. I’m sure you can all follow.

Recent low $310.50, recent high $378.65. EPS at time $20.98. Thus low PE of 14.8 to high PE of 18.05

Approx price in AH, $400 with new EPS $25.26 = PE of 15.35. Thus recent run from the lows of $310 until ER AH solely to maintain the PE range. Remove the last 2 weeks and extreme lows as outliers. Take highest price after Apr ER, $355 = 16.92 PE. So we are left with a PE range of 15 to 16.9.

Let’s assume that range is a trading range, gives us $379 to $427. There you go, trading range until end of summer.

Below is copy/paste of a comment made on PED’s blog.

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I like your DD. Here’s some of mine. AAPL is never going to regain a PE of 20, IMHO. Growth of 80% or 120% won’t change that. Sheer market cap is messing with too many people’s heads, and the closer it inches to becoming the largest publicly traded company in the world, the more the PE will compress down towards other mega cap company averages. This is because the vast majority of people in the market do not believe 50-120% growth is sustainable. They are wrong IMNHO, but they have more money than you and I do.

Eventually the PE will compress to the point that EPS growth will be reflected in PPS growth on a 1:1 basis.

The good news is that I believe we’re are at this point right now … for now. Thus the huge run from 320ish (or 15ish PE) to here, once again 15ish PE. All gains from now until next ER will be based on expected future EPS growth, not PE expansion. When (not if) AAPL overtakes XOM, I expect to see the PE compress further.