Apple Stock is Insanely Overvalued Based on This Key Metric.
Apple stock closed at $300.35, bringing its total valuation to $1.33 trillion.
But, data shows earnings remained flat while the stock doubled.
Apple stock’s PE ratio has doubled in the past 12 months.
Is Apple stock overvalued or undervalued?
Why Apple Is Not a Value Stock
After all, its PEG is 2.5 — based on a price-earnings ratio of about 24.7, according to Morningstar — and some 30 analysts’ average forecast of 9.9% annual five year earnings growth for Apple, according to YahooFinance. One Apple analyst believes that Apple shares are grossly undervalued.
Should I buy Apple stock 2020?
After a great 2019, Apple stock looks like it will be a top choice for 2020 as well. Apple (NASDAQ:AAPL) stock reports earnings on Tuesday afternoon, and all eyes will be on the California-based giant to see if Tim Cook can add another chapter of growth on top of AAPL’s amazing run in 2019.
How do you know if a stock is overvalued?
A stock is considered overvalued when its current price isn’t supported by its P/E ratio or earnings projection. If a company’s stock price is 50 times earnings, for example, it’s likely overvalued compared to a company that’s trading for 10 times earnings.
Why has Apple stock gone up?
Apple stock has doubled since the start of 2019.
Driving the stock higher has been anticipation of a rebound in iPhone sales when the first 5G models are launched later this year, as well better-than-expected iPhone 11 demand and enthusiasm about the company’s services and wearables segments.