With a market capitalization of $1.27 trillion, declining revenues/margins year-over-year, share appreciation of 67% since June 2019 and 100% since early-Jan 2019, AAPL has reached stretched valuations.
• Trailing P/E ratio is 23.70, the highest level since June 2008
• Revenue growth is down 2% YoY
• Earnings growth is down 9.8% YoY
• Dividend yield is 1.1%, the lowest level since AAPL first introduced a dividend in 3Q 2012. Since 2012, AAPL’s yield has averaged 1.94%.
This is not a doom and gloom projection, as the company has an indisputable solid brand and consumer loyalty, with people continuing to dish out $1,000+ for new iPhones, however, the valuation of the company has become overextended and expecting the stock to see a correction in Q1 2020 as investors look to rebalance their portfolios.
12.23.19 12:15pm EST
• Trailing P/E ratio is 23.70, the highest level since June 2008
• Revenue growth is down 2% YoY
• Earnings growth is down 9.8% YoY
• Dividend yield is 1.1%, the lowest level since AAPL first introduced a dividend in 3Q 2012. Since 2012, AAPL’s yield has averaged 1.94%.
This is not a doom and gloom projection, as the company has an indisputable solid brand and consumer loyalty, with people continuing to dish out $1,000+ for new iPhones, however, the valuation of the company has become overextended and expecting the stock to see a correction in Q1 2020 as investors look to rebalance their portfolios.
12.23.19 12:15pm EST