In 1999, Apple’s stock price was $0.98 with a P/S ratio of 2.87 and a P/E of 29.3—rich valuations that signaled high risk.
A year later, the stock had fallen 73% to $0.26, but revenues, profits, and tangible equity had all grown. The P/S had dropped to just 0.62 and the P/E to 6.3, making it a significantly better opportunity.
Equity Risk Sciences’ proprietary risk ratings would have warned investors:
📌 PRI™ (Price Risk Indicator™) was 84 in 1999 (high risk), but just 3 in 2000 (low risk).
📌 FRR™ (Financial Risk Rating™) dropped from 64 to 5, signaling a much safer buy.
If investment advisors had relied on ERS’s objective data science rather than market hype, they could have avoided a bad buy in 1999 and made a smart one in 2000.
👉 Want to make better investment decisions? Download the PDF report – then contact us today.
| 12/2/1999 | 12/26/2000 | % Change | |
| Price | $0.98 | $0.26 | -73% |
| Market Cap | $17.6 billion | $4.9 billion | -72% |
| Price to Sales | 2.87 | 0.62 | -78% |
| Price to Earnings | 29.3 | 6.3 | -79% |
| Price to Tangible Equity | 5.95 | 1.22 | -79% |
| Revenue | $6.1 billion | $8.0 billion | +30% |
| Net Income | $601 million | $786 million | +31% |
| Tangible Equity | $3.0 billion | $4.0 billion | +36% |
| PRI™ | 84 | 3 | |
| FRR™ | 64 | 5 |