Apple Valuation

Is AAPL undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • PM vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of AAPL when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: AAPL ($179.66) is trading above our estimate of fair value ($173.58)

Significantly Below Fair Value: AAPL is trading above our estimate of fair value.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for AAPL?

Other financial metrics that can be useful for relative valuation.

AAPL key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue7x
Enterprise Value/EBITDA20.8x
PEG Ratio5.8x

Price to Earnings Ratio vs Peers

How does AAPL's PE Ratio compare to its peers?

The above table shows the PE ratio for AAPL vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average35.7x
GOOGL Alphabet
23.1x11.9%US$1.7t
META Meta Platforms
32.8x14.2%US$1.3t
MSFT Microsoft
37.4x12.4%US$3.1t
NFLX Netflix
49.6x17.0%US$268.0b
AAPL Apple
27.5x4.7%US$2.8t

Price-To-Earnings vs Peers: AAPL is good value based on its Price-To-Earnings Ratio (27.5x) compared to the peer average (35.7x).


Price to Earnings Ratio vs Industry

How does AAPL's PE Ratio compare vs other companies in the Global Tech Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a6.1%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a6.1%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: AAPL is expensive based on its Price-To-Earnings Ratio (27.5x) compared to the Global Tech industry average (23.6x).


Price to Earnings Ratio vs Fair Ratio

What is AAPL's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

AAPL PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio27.5x
Fair PE Ratio35.6x

PM vs Fair Ratio: AAPL is good value based on its Price-To-Earnings Ratio (27.5x) compared to the estimated Fair Price-To-Earnings Ratio (35.6x).


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst AAPL forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$179.66
US$200.65
+11.7%
12.2%US$250.00US$125.00n/a43
Feb ’25US$186.86
US$199.62
+6.8%
12.6%US$250.00US$125.00n/a43
Jan ’25US$192.53
US$199.18
+3.5%
12.8%US$250.00US$116.00n/a44
Dec ’24US$191.24
US$196.48
+2.7%
12.2%US$240.00US$116.00n/a44
Nov ’24US$173.97
US$197.25
+13.4%
12.1%US$240.00US$116.00n/a44
Oct ’24US$171.21
US$199.23
+16.4%
11.9%US$240.00US$125.00n/a44
Sep ’24US$189.46
US$200.04
+5.6%
11.2%US$240.00US$149.00n/a43
Aug ’24US$195.61
US$195.11
-0.3%
13.9%US$240.00US$116.00n/a43
Jul ’24US$193.97
US$186.50
-3.9%
12.0%US$240.00US$116.00n/a42
Jun ’24US$180.09
US$179.17
-0.5%
11.5%US$210.00US$116.00n/a41
May ’24US$169.59
US$170.86
+0.7%
12.7%US$210.00US$116.00n/a42
Apr ’24US$164.90
US$169.24
+2.6%
12.3%US$210.00US$116.00n/a42
Mar ’24US$145.31
US$168.34
+15.8%
11.9%US$210.00US$116.00US$179.6642
Feb ’24US$145.43
US$168.09
+15.6%
12.4%US$210.00US$118.00US$186.8642
Jan ’24US$129.93
US$172.28
+32.6%
12.1%US$210.00US$118.00US$192.5342
Dec ’23US$148.31
US$174.33
+17.5%
11.3%US$210.00US$122.00US$191.2441
Nov ’23US$150.65
US$176.78
+17.3%
10.9%US$210.00US$122.00US$173.9741
Oct ’23US$138.20
US$182.30
+31.9%
10.0%US$220.00US$122.00US$171.2140
Sep ’23US$157.96
US$181.50
+14.9%
10.1%US$220.00US$130.00US$189.4640
Aug ’23US$161.51
US$179.75
+11.3%
10.2%US$214.00US$130.00US$195.6140
Jul ’23US$138.93
US$185.78
+33.7%
9.5%US$226.00US$130.00US$193.9741
Jun ’23US$148.71
US$188.07
+26.5%
9.2%US$226.00US$130.00US$180.0941
May ’23US$157.65
US$189.93
+20.5%
9.3%US$226.00US$130.00US$169.5942
Apr ’23US$174.31
US$191.42
+9.8%
9.7%US$226.00US$130.00US$164.9041
Mar ’23US$163.20
US$191.30
+17.2%
9.7%US$226.00US$130.00US$145.3141

Analyst Forecast: Target price is less than 20% higher than the current share price.


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