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Shares of Apple (AAPL - Analyst Report) were plunging on Tuesday, falling as much as $48, or -8.8%, following the company's fiscal 2014 first quarter earnings report. With that sort of negative reaction, you would have thought that Apple reported a big earnings miss or issued awful guidance. But that wasn't really the case.

The company reported EPS of $14.50, beating the Zacks Consensus Estimate of $14.04. EPS was boosted a bit by its massive stock buyback program, but net income held steady year-over-year.

Meanwhile, revenue came in at an all-time quarterly record of $57.6 billion, driven by record iPhone and iPad sales. Total revenue was up 6% year-over-year, driven by strong growth in China.

The company also finished the quarter with a remarkable $158,842,000,000 in cash and securities, or approximately $176 per share. It generated $20.7 billion in free cash flow for the quarter.

Guidance wasn't very encouraging, but Apple's management is often overly conservative. The company expects Q2 revenue between $42-$44 billion with a gross margin between 37% and 38% and operating expenses of $4.3-$4.4 billion. That compares to revenue of $43.6 billion, a 37.5% gross margin and operating expenses of $3.8 billion in the second quarter of 2013.

Earnings estimates will likely come down a bit for Apple over the coming days, so it's no surprise that the stock was down on Tuesday. But do you think the report was bad enough to warrant an -8% drop in a stock that was arguably already "cheap" by most relative value metrics? After Tuesday's selloff, shares of Apple were trading at just 7.5x the current 2014 Zacks Consensus Estimate, excluding its cash. Granted, the consensus is likely to come down a bit, but even at 8 or 9x forward earnings, Apple looks very cheap next to its peers and even the S&P 500.

So what do you think? Is the big selloff in Apple on Tuesday just an overreaction by a jittery market? Or do you think it is warranted?

Chime in below!

Disclosure: Todd Bunton owns shares of Apple (AAPL - Analyst Report).

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