$Apple(AAPL)$ still love Apple, at least it share price has been stable!
Apple (NASDAQ: AAPL) currently trades at a premium valuation versus both its own history and the broader market.
Key valuation metrics (current):
* Market capitalization: approximately US$4.6–4.9 trillion
* Trailing P/E: roughly 37–40× earnings
* Forward P/E: roughly 30–32× next year’s expected earnings
* Price/Sales: about 10×
* EV/EBITDA: about 29×
Is Apple expensive?
Compared with its own history, yes.
* Apple’s long-term average P/E has generally been in the 20–30× range.
* Today’s valuation near 40× earnings implies investors expect continued earnings growth, resilient iPhone demand, expanding services revenue, and stronger AI-driven product upgrades.
Bull case
* Extremely strong ecosystem and customer loyalty.
* High-margin Services business continues to grow.
* Massive free cash flow and ongoing share buybacks.
* AI features could drive a multi-year iPhone upgrade cycle.
Bear case
* Revenue growth remains relatively modest compared with the valuation.
* The stock is priced for continued execution, leaving less room for disappointment.
* Any slowdown in iPhone demand or AI monetization could compress the valuation multiple.
From a value-investing perspective, Apple appears fair to somewhat expensive rather than cheap. For long-term investors, the key question is whether Apple can sustain earnings growth in the low-to-mid teens over the next several years, which would help justify its premium multiple.
If you’re considering buying AAPL, I can also estimate its intrinsic value using a discounted cash flow (DCF) under optimistic, base, and conservative assumptions.
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