AAPL Relative Valuation
AAPL's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, AAPL is overvalued; if below, it's undervalued.
Historical Valuation
Apple Inc (AAPL) is now in the Overvalued zone, suggesting that its current forward PE ratio of 32.85 is considered Overvalued compared with the five-year average of 27.61. The fair price of Apple Inc (AAPL) is between 209.60 to 249.21 according to relative valuation methord. Compared to the current price of 266.79 USD , Apple Inc is Overvalued By 7.05%.
Relative Value
Fair Zone
209.60-249.21
Current Price：266.79
7.05%
Overvalued
32.85
PE
1Y
3Y
5Y
25.21
EV/EBITDA
Apple Inc. (AAPL) has a current EV/EBITDA of 25.21. The 5-year average EV/EBITDA is 21.04. The thresholds are as follows: Strongly Undervalued below 16.35, Undervalued between 16.35 and 18.70, Fairly Valued between 23.38 and 18.70, Overvalued between 23.38 and 25.73, and Strongly Overvalued above 25.73. The current Forward EV/EBITDA of 25.21 falls within the Overvalued range.
27.53
EV/EBIT
Apple Inc. (AAPL) has a current EV/EBIT of 27.53. The 5-year average EV/EBIT is 22.98. The thresholds are as follows: Strongly Undervalued below 17.98, Undervalued between 17.98 and 20.48, Fairly Valued between 25.48 and 20.48, Overvalued between 25.48 and 27.97, and Strongly Overvalued above 27.97. The current Forward EV/EBIT of 27.53 falls within the Overvalued range.
8.84
PS
Apple Inc. (AAPL) has a current PS of 8.84. The 5-year average PS is 7.08. The thresholds are as follows: Strongly Undervalued below 5.17, Undervalued between 5.17 and 6.13, Fairly Valued between 8.04 and 6.13, Overvalued between 8.04 and 9.00, and Strongly Overvalued above 9.00. The current Forward PS of 8.84 falls within the Overvalued range.
27.71
P/OCF
Apple Inc. (AAPL) has a current P/OCF of 27.71. The 5-year average P/OCF is 23.08. The thresholds are as follows: Strongly Undervalued below 17.81, Undervalued between 17.81 and 20.45, Fairly Valued between 25.72 and 20.45, Overvalued between 25.72 and 28.36, and Strongly Overvalued above 28.36. The current Forward P/OCF of 27.71 falls within the Overvalued range.
31.11
P/FCF
Apple Inc. (AAPL) has a current P/FCF of 31.11. The 5-year average P/FCF is 26.19. The thresholds are as follows: Strongly Undervalued below 20.59, Undervalued between 20.59 and 23.39, Fairly Valued between 28.99 and 23.39, Overvalued between 28.99 and 31.79, and Strongly Overvalued above 31.79. The current Forward P/FCF of 31.11 falls within the Overvalued range.
Apple Inc (AAPL) has a current Price-to-Book (P/B) ratio of 54.30. Compared to its 3-year average P/B ratio of 47.69 , the current P/B ratio is approximately 13.86% higher. Relative to its 5-year average P/B ratio of 43.93, the current P/B ratio is about 23.60% higher. Apple Inc (AAPL) has a Forward Free Cash Flow (FCF) yield of approximately 2.47%. Compared to its 3-year average FCF yield of 3.30%, the current FCF yield is approximately -25.25% lower. Relative to its 5-year average FCF yield of 3.62% , the current FCF yield is about -31.85% lower.
54.30
P/B
Median3y
47.69
Median5y
43.93
2.47
FCF Yield
Median3y
3.30
Median5y
3.62
Competitors Valuation Multiple
The average P/S ratio for AAPL's competitors is 5.19, providing a benchmark for relative valuation. Apple Inc Corp (AAPL) exhibits a P/S ratio of 8.84, which is 70.28% above the industry average. Given its robust revenue growth of 7.94%, this premium appears unsustainable.
Performance Decomposition
1Y
3Y
5Y
Market capitalization of AAPL increased by 13.25% over the past 1 year. The primary factor behind the change was an increase in Revenue Growth from 94.93B to 102.47B.
The secondary factor is the P/E Change, contributed 5.27%to the performance.
Overall, the performance of AAPL in the past 1 year is driven by Revenue Growth. Which is more sustainable.
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Frequently Asked Questions
Is Apple Inc (AAPL) currently overvalued or undervalued?
Apple Inc (AAPL) is now in the Overvalued zone, suggesting that its current forward PE ratio of 32.85 is considered Overvalued compared with the five-year average of 27.61. The fair price of Apple Inc (AAPL) is between 209.60 to 249.21 according to relative valuation methord. Compared to the current price of 266.79 USD , Apple Inc is Overvalued By 7.05% .
What is Apple Inc (AAPL) fair value?
AAPL's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average , adjusted by weights. The fair price of Apple Inc (AAPL) is between 209.60 to 249.21 according to relative valuation methord.
How does AAPL's valuation metrics compare to the industry average?
The average P/S ratio for AAPL's competitors is 5.19, providing a benchmark for relative valuation. Apple Inc Corp (AAPL) exhibits a P/S ratio of 8.84, which is 70.28% above the industry average. Given its robust revenue growth of 7.94%, this premium appears unsustainable.
What is the current P/B ratio for Apple Inc (AAPL) as of Jan 06 2026?
As of Jan 06 2026, Apple Inc (AAPL) has a P/B ratio of 54.30. This indicates that the market values AAPL at 54.30 times its book value.
What is the current FCF Yield for Apple Inc (AAPL) as of Jan 06 2026?
As of Jan 06 2026, Apple Inc (AAPL) has a FCF Yield of 2.47%. This means that for every dollar of Apple Inc’s market capitalization, the company generates 2.47 cents in free cash flow.
What is the current Forward P/E ratio for Apple Inc (AAPL) as of Jan 06 2026?
As of Jan 06 2026, Apple Inc (AAPL) has a Forward P/E ratio of 32.85. This means the market is willing to pay $32.85 for every dollar of Apple Inc’s expected earnings over the next 12 months.
What is the current Forward P/S ratio for Apple Inc (AAPL) as of Jan 06 2026?
As of Jan 06 2026, Apple Inc (AAPL) has a Forward P/S ratio of 8.84. This means the market is valuing AAPL at $8.84 for every dollar of expected revenue over the next 12 months.