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Apple stock is 'cheap' compared to the broader market and its peers, Bespoke's Paul Hickey says

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Apple is 'cheap' relative to the broader market, Bespoke's Paul Hickey says

A new report suggests Apple shares are a bargain — even at almost $200 a pop.

The Bespoke Investment Group's Paul Hickey compared P/E ratios of S&P 500 components to Apple.

The takeaway: It's tough to be bearish on the stock.

" When you look at Apple, it's cheap relative to the broader market," the firm's co-founder said Friday on CNBC's "Trading Nation. "

In a special chart, Hickey shows Apple is well below average in relation to the current multiple of every S&P 500 stock.

And, it's not just the overall market. According to Hickey, the iPhone maker also trades at a 25% discount to the average technology stock.

Plus, his report found Apple is trading at a "big discount" to the average consumer product stock. It's a pertinent data point as more investors, as well as CEO Tim Cook, sees it more as a consumer product company.

"You could just compare Apple to any other sector, and it's trading at a cheaper multiple," he added. "Even mega caps in the S&P 500 trade at over 20 times earnings whereas Apple is trading under 16 1/2 times earnings right now. "

Despite the rough week ending May 10, Apple shares are outperforming the S&P 500 by roughly 10% this year.

"Unless you have a negative view toward the broader market overall, it's hard not to like the stock," Hickey said. "It's become much more predictable, and predictable is what a lot of investors are looking for."

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New report finds Apple shares are inexpensive relative to the broader market