Don't Judge Apple on Technicals Alone - Check Its Fundamentals!

By Ken Smith • Tuesday, October 03 10:13 • Permanent Link

Apple logged a -1.1% change during today's morning session, and is now trading at a price of $171.92 per share. The S&P 500 index moved -1.0%. AAPL's trading volume is 8,951,246 compared to the stock's average volume of 58,361,104.

Apple trades -13.86% away from its average analyst target price of $199.58 per share. The 37 analysts following the stock have set target prices ranging from $149.0 to $240.0, and on average have given Apple a rating of buy.

Anyone interested in buying AAPL should be aware of the facts below:

Apple's current price is 732.1% above its Graham number of $20.66, which implies that at its current valuation it does not offer a margin of safety
Apple has moved 18.0% over the last year, and the S&P 500 logged a change of 13.0%
Based on its trailing earnings per share of 5.96, Apple has a trailing 12 month Price to Earnings (P/E) ratio of 28.8 while the S&P 500 average is 15.97
AAPL has a forward P/E ratio of 26.1 based on its forward 12 month price to earnings (EPS) of $6.59 per share
The company has a price to earnings growth (PEG) ratio of 3.87 — a number near or below 1 signifying that Apple is fairly valued compared to its estimated growth potential
Its Price to Book (P/B) ratio is 44.63 compared to its sector average of 6.23
Apple Inc. designs, manufactures, and markets smartphones, personal computers, tablets, wearables, and accessories worldwide.
Based in Cupertino, the company has 164,000 full time employees and a market cap of $2.69 Trillion. Apple currently returns an annual dividend yield of 0.5%.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.