Shares of Apple (NASDAQ: AAPL) are down 30 percent since its September high, leaving many investors scratching their heads. However if you look at the most fundamental metric of any growth company the decline may be perfectly justified.

The plain and simple fact is Apple's earnings have stopped growing... dead. For the upcoming quarter (Q113), for example, EPS is expected to drop about 4% to $13.35 per share. Last year the company posted EPS of $13.87. If you compare this quarter's EPS growth to past quarters you can quickly see the red flag.

In Q412 Apple posted EPS growth of 23%... in Q312 it was 20%... in Q212 it was 92%... in Q112 it was 116%. The drop-off is so glaring it is blinding.

On the top-line, Apple is still showing growth, although that is also slowing dramatically. Revenue this quarter is expected to grow 18%. In last year's Q1 revenues grew 73%.

Apple is still a wonderful company and likely undervalued on various metrics. However if you ask the very fundamental question - "Is Apple growing earnings?" The answer is a big fat NO.

It appears the law of large numbers has finally caught up with the company. Smart investors noticed and took a hike.

Apple is scheduled to post earnings on January 23rd, after the market closes.

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BMO Capital Slashes Numbers on Apple (AAPL), Keeps BuyJanuary 17, 2013 8:54 AM