Apple
Apple’s (NASDAQ: AAPL) inventory has seen a robust rally, rising by over 60% over the past 6 months, presently buying and selling at ranges of round $320 per share, pushed by stronger-than-expected demand for the brand new iPhone 11 handsets, sturdy gross sales of companies and different merchandise reminiscent of AirPods and the Apple Watch. Nevertheless, we imagine that the corporate is barely overvalued at these ranges, given the numerous growth in Apple’s ahead P/E a number of from ranges of round 16x in FY’19 to about 23x, based mostly on the present market worth and likewise on account of dangers regarding the corporate’s Chinese language enterprise. On this evaluation, we break down the important thing components driving our valuation for Apple.
Trefis has a worth estimate of $280 per share for Apple inventory, which displays a draw back of about 13% from the present market worth as of February 12th. You possibly can view the Trefis interactive dashboard – Apple Valuation: Expensive or Cheap? – to grasp the varied components driving a better inventory worth estimate for Apple, and alter the important thing assumptions to reach at your personal worth estimate for the corporate.
We arrive at…