The stock price for Apple this year has been almost 60%. It literally has doubled since the last 12 months. Apple’s market capitalization, which is 2.16 trillion dollars is one of the largest on the US exchange market. However, the recent pullback had caused the shares to hit an all-time high. This change and fluctuation might have discouraged or even scare off the investors of the Apple stock. The data collected for the same is now huge. The marketing capital for Apple is around 400 billion dollars more than the other two tech giant companies, which are Amazon and Microsoft, respectively. But has this caused The Apple stock (AAPL) value to become overvalued?
How has the valuation of the Apple stocks gone up?
As of 2019 October, the price to earnings ratio of Apple was 19.2, the price to sales ratio was 4.1 and last but not the least the price to free cash flow ratio was 17.9. And according to the current statistics and reports that we have received from Apple as of October 2020 is the following: price to earnings ratio is 35.7, price to sales ratio is 7.6 and price to free cash flow is 29.0. As you can see from the following data that the apples key valuation has increased almost twice the amount it was the previous year.
What does the valuation of Apple’s data indicate from the years’ previous report?
It tells us that the investors have been more optimistic about Apple since last year. As we can see, the prices have almost doubled in comparison to the last year this means that the investors are very much interested in investing in Apple stocks and shares. Apple stock price has gone up very much faster in comparison to its sales, free cash flow, and earnings.
Why are the investors so optimistic about Apple sales and stocks?
The investors are optimistic about Apple season stocks because the iPhone sales, in the majority, have resulted in a greater boost for Apple Company in terms of economy. This gives the investors to invest in the stock market of Apple as it reduces the chances of them suffering from any sort of loss.
Is the valuation of Apple stock price higher than that of its competitors Amazon and Microsoft?
Regardless of the increase in the valuation of Apple stock price, it still continues to remain the lowest among its two competitors; Amazon and Microsoft. One of the reasons for this could be that Amazon and Microsoft tend to have higher growth rates in comparison to Apple. If you want to know more information like income statement, you can check at https://www.webull.com/income-statement/nasdaq-aapl.
Disclaimer: The analysis information is for reference only and does not constitute an investment recommendation.
