Apple Inc (NASDAQ:AAPL).'s shares, currently trading at $173, are considered fairly priced, according to a recent valuation model. This evaluation places the tech giant's stock at approximately 7.70% above its intrinsic value of $160.52, suggesting that investors are purchasing the shares at a reasonable rate. The InvestingPro data shows an adjusted market cap of $2700.0B USD and a P/E ratio of 28.99, which supports this valuation.
The company's stock has experienced significant price fluctuations recently, with highs reaching $196 and lows dipping to $170. These shifts have sparked questions about Apple's actual worth and whether it may be undervalued. The firm's high beta indicates a greater level of price volatility compared to the overall market. This volatility can present buying opportunities for investors during bearish periods. Notably, Apple's stock generally trades with low price volatility, as noted in the InvestingPro Tips.
Looking ahead, Apple's future seems promising with an anticipated 21% growth in earnings. This projection further bolsters the view that the company's shares are appropriately valued, despite the recent market turbulence. The InvestingPro Tips also highlight that Apple's strong earnings should allow management to continue dividend payments and that the company has raised its dividend for 11 consecutive years, which may be appealing to income-focused investors.
Furthermore, Apple's management has been aggressively buying back shares, which is often a positive sign of the company's faith in its own future growth. The company also yields a high return on invested capital and operates with a high return on assets - all these factors indicate a strong financial position and potential for future growth.
In addition to these insights, InvestingPro offers 17 more tips about Apple, which can be found at InvestingPro. These tips could provide valuable insights for potential investors and help them make more informed decisions.
The InvestingPro data also reveals a revenue LTM2023.Q3 of 383.93B USD and a gross profit LTM2023.Q3 of 166.82B USD. While the revenue growth LTM2023.Q3 shows a slight decline of -0.93%, the company's strong financials and promising future outlook offer a compelling case for investment.
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