Price-to-earnings ratio for Apple’s stock has dropped dramatically since Dow industrials inclusion, Apple Watch event Apple Inc.’s stock surged Wednesday after the technology giant beat profit expectations, but it still looks way undervalued relative to earnings-per-share growth. The ratio of Apple’s share price AAPL, +0.18% to earnings per share for the last 12 months--P/E ratio (LTM)--has fallen from 17.06 in the first week of March to about 12.70 in midday trade, according to FactSet. Over the same time, the P/E ratio for the S&P 500 SPX, -0.04% has increased from 17.13 to about 18.60. Read more about Apple’s latest earnings report and analyst reactions to the report. Among other large market-capitalization technology companies, the P/E ratio for Microsoft Corp. MSFT, -1.15% has jumped to about 35.80 on Wednesday from 17.08 in early March, and for Alphabet Inc. GOOGL, +1.08% has climbed to about 33.90 from 28.72. That suggests investor sentiment toward Apple shares has soured since early March, while it has improved toward the rest of the market and its biggest tech peers. The timing of the decline in sentiment just happens to coincide with the announcement that Apple will join the venerable Dow Jones Industrial AverageDJIA, -0.13% and with the Apple Watch event. The last time Apple’s stock appeared undervalued relative to EPS growth for an extended period was during the first half of 2013, after the stock lost nearly half its value from its record close of $100.30 in September 2012. More from MarketWatch