Is Apple a $17,000 Stock?

The day that Apple $AAPL finally decides to use it's massive cash hoard to declare it's first dividend ever in conjunction with a $10 billion stock buyback program is the day I decided to lay on is AAPL a $17,000 stock?

Courtesy of Bespoke comes a way to value Apple based on it's P/E ratio compared to other indices and comparable (if you will) companies.  Granted this was originally released by Bespoke on February 13 and since then all Apple has done is scream up to the $600 level so it still has some work to do to catch up to others.

The issue with Apple is when do people decide to pull the rip cord and head for the exits?  Apple has now become 19% of the DCMW fund and we haven't added to our position but only maintained when we first bought in at 2013 calls @ $370 per share.  I fear Apple becoming a value trap because on just about any metric you can find or use it is usually undervalued compared to it's index or peers.  As Apple's profit grow and the price remains stagnant the P/E shrinks even more.  The Apple play is all predicated on weather or not Apple can keep up with it's own pace.

From a bullish viewpoint they still have only small pieces of the personal computer markets and even though selling millions of iPhones Samsung still rains supreme when it comes to smartphone sales.  However from a bearish stand when do their margins start to compress when their product lines eventually shift?  Something to keep an eye on.  But for now we see how far it can run.