Highly Regarded

Is Apple Inc. (AAPL) Stock Undervalued or Overvalued?

Trailing-twelve-month multiples vs Technology sector peers in our coverage

50% Discount TTM fundamentals · sector averages from covered peers

AAPL trades at 39.6× TTM earnings — a 50% discount to its Technology sector average of 79.6× in our coverage.

The Numbers

P/E (TTM)

39.6×

Sector avg: 79.6×

P/S (TTM)

10.5×

Sector avg: 18.6×

Market Cap

$4.59T

EPS (TTM): $7.90

Revenue (TTM)

$435.62B

Net income: $117.78B

Technology Peer Comparison

How AAPL's multiples stack up against sector peers we cover. Click any peer for its own valuation breakdown.

Stock Price P/E (TTM)
AAPL This page $312.73 39.6×
NVDA $195.52 48.4×
MSFT $386.79 24.2×
AVGO $373.72 78.3×
AMD $551.70 208.2×
INTC $122.14 —
CSCO $113.98 44.0×
ORCL $143.82 33.3×
PLTR $132.53 308.2×
TXN $303.53 55.7×
QCOM $186.38 37.7×
CRM $165.63 24.0×
ADBE $218.11 13.1×

Is the Discount Justified?

July 6, 2026

Apple's P/E of 39.7x is notably below the Technology sector average of 76.3x. Recent fiscal Q1 2026 results showed 16% year-over-year revenue growth and 19% diluted EPS growth, driven by strong iPhone demand and record Services revenue. Services, a high-margin segment, achieved an all-time revenue record, up 14% year-over-year. However, rising memory costs are expected to pressure product gross margins in subsequent quarters, potentially offsetting some earnings benefits. Management expects Q3 revenue growth between 14% and 17% year-over-year. The current P/E is above its ten-year mean of 25.51x, suggesting a re-rating as investors increasingly view Apple as a recurring revenue platform. Despite strong fundamentals, the current valuation is considered a premium compared to broader hardware and software peers, though a tailored "fair" P/E ratio of 43.3x sits above the current multiple.

Sources

Frequently Asked Questions

Is AAPL overvalued or undervalued?
On trailing-twelve-month earnings, AAPL trades at 39.6x versus a Technology sector average of 79.6x in our coverage — a 50.2% discount. Whether that's justified depends on growth, margins, and risk; see the context above.
What does the P/E ratio tell you?
Price-to-earnings compares a company's share price with its per-share profits. A higher multiple means investors pay more per dollar of earnings — often for faster expected growth — while a lower one can signal slower growth or higher perceived risk.
Why compare against the sector average?
Valuation multiples vary structurally between industries — software typically trades richer than banks or energy. Comparing AAPL with its own Technology peers is more informative than comparing against the whole market.
Is a cheap stock automatically a good buy?
No. A discount can be justified by weak growth or elevated risk (a "value trap"), and a premium can be earned by quality and consistency. Valuation is one input — pair it with the fundamentals and the AI context on this page.

Methodology

Multiples are computed from trailing-twelve-month fundamentals (from company filings) and the latest share price: P/E is price ÷ diluted EPS, and P/S is market cap ÷ revenue. Sector averages use the Technology names in our 50-stock coverage with positive earnings — a deliberately like-for-like, if imperfect, benchmark.

Stocks with negative trailing earnings are compared on price-to-sales instead. Multiples update with prices and fundamentals; AI context refreshes weekly.

Not Financial Advice

This page is for education and information only. Indicators are mechanical calculations, AI commentary can contain errors, and nothing here is a recommendation to buy or sell any security. Do your own research and consider consulting a qualified financial advisor. See our full disclaimer.

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