Since reporting its earnings yesterday, Apple’s AAPL market capitalization has dropped by about $40 billion. For the first time in 13 years, the company posted a year-over-year decline in quarterly revenue. Since 2015, the Cupertino tech giant’s growth momentum has slowed down dramatically. Revenues declined by 13% compared to the same quarter last year, and this was primarily driven by the slowdown in iPhone sales. Quarterly revenues from the smart phone declined by 18.36%. This took a big bite out of Apple, since iPhone sales consistently account for more than half of the company’s revenues. In Q2, iPhones were responsible for 65% of the company’s sales. As a result of the revenues decline and weak projections for the next quarter, Apple’s share price has dropped by about 7%. What does this mean for Apple’s valuation right now? Let’s glance at some key valuation metrics to see how cheap Apple’s stock looks right now. Apple trades at a forward PE of just 11.70, which is far less than the average PE for companies within the S&P 500. The company has an EV/EBITDA and price-to-sales of 7.09 and 2.58, respectively. An EV/EBITDA below 10 is generally considered to be good. Apple is known for its strong cash flows, and it generates cash flows per share of $11.34. Apple is valued at a price-to-book of 4.12, and it also maintains a healthy capital structure, having a debt-to-equity of 0.41. Apple has been buying back over $20 billion in shares each year since 2013, which suggests that the company is betting on its own success. The corporation previously doled out a $2.08 dividend per share, which yields 2.12%. At the earnings release, however, Apple announced a 10% raise to its quarterly dividend. Apple’s strong cash flows suggest that it could easily afford to raise its dividend even more if it wanted to. The company has been raising its dividend annually since 2012. Bottom Line Apple does have a lot of growth hurdles to overcome, but it still looks like a bargain across several valuation metrics. The tech giant gets a grade of “A” for Value in our Style Scores. If the company’s cash flows weren’t so strong, and it didn’t look like a company that could increase its dividend over time, it would be harder to pose a bullish argument for AAPL stock. That being said, Apple will need to find a new growth driver if it wants investors to have the confidence they need to buy the company’s shares at higher valuation multiples. Apple is a Zacks Rank #3 (Hold). The Zacks Rank is a truly marvelous trading tool. Our ranking system has beaten the S&P 500, yielding an average return of 25% per year for the last 29 years! Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report APPLE INC (AAPL): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research