Apple (AAPL): Valuation in Focus as New iPhone 17 and M5 Chip Products Exceed Early Sales Expectations

Apple is drawing attention after the launch of its iPhone 17 lineup and M5 chip-powered devices outperformed expectations, particularly in China and the US. Early demand indicators for these products are sparking fresh discussions about Apple's competitive position and stock outlook.

See our latest analysis for Apple.

With iPhone 17 demand running hot and the latest M5 chip-powered products making waves, Apple’s momentum is clearly building. The share price has surged 22% over the past 90 days and stands at $262.24, reflecting both strong product launches and renewed investor optimism. Meanwhile, Apple’s one-year total shareholder return of 11% shows the company delivering not just excitement but real value to its investors over time.

If Apple’s latest moves have you thinking about what other tech leaders are doing, the next step is to discover See the full list for free.

But with shares now near record highs and Apple’s valuation stretched compared to historic averages, investors face a dilemma: is there genuine upside left for those buying in today, or has the market already priced in all of Apple’s future growth?

Most Popular Narrative: 47.9% Overvalued

Compared to Apple’s recent price of $262.24, the most widely discussed narrative, according to Investingwilly, estimates fair value at just $177.34. This difference has ignited debate, as the narrative takes aim at Apple’s slowing momentum and shifting growth drivers.

The most troubling aspect of Apple’s valuation is the market's excessive optimism. While the company has been a consistent performer, its stock price now reflects growth expectations that may no longer be realistic. Apple’s core products are reaching maturity, and its future growth prospects are limited. With such high expectations built into its stock price, Apple may be due for a correction.

Read the complete narrative.

Curious what assumptions make this view so bearish? There is a bold outlook behind future profit multiples, revenue growth, and margin direction. But what is fueling that low target? Only the full narrative reveals the decisive projections that set this valuation apart. Take a look inside.

Result: Fair Value of $177.34 (OVERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, robust demand for new devices or unexpected breakthroughs in Apple’s ecosystem could challenge the bearish view and propel shares even higher.

Find out about the key risks to this Apple narrative.

Build Your Own Apple Narrative

If these perspectives don’t match your outlook, why not dive into the details and form your own view with the available data? You can shape your personalized narrative in just a matter of minutes: Do it your way

A great starting point for your Apple research is our analysis highlighting 1 key reward and 2 important warning signs that could impact your investment decision.

Looking for more investment ideas?

Give yourself the advantage of smarter investing. Take control and spot tomorrow’s opportunities before they make headlines, using Simply Wall Street’s handpicked lists:

• Seize fresh growth by checking out these 873 undervalued stocks based on cash flows and identify stocks trading below their true worth for potential upside.
• Strengthen your income portfolio as you pursue these 17 dividend stocks with yields > 3% offering attractive yields above 3% from stable, well-established companies.
• Ride the innovation wave and tap into artificial intelligence trends with these 24 AI penny stocks built for forward-thinking investors.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com