Apple Rated as Hold Due to High Valuations

2 months ago

Parkev Tatevosian, CFA

"So Apple's now trading at valuations at the most expensive they've been in several years. On a forward PE basis, it's trading at a forward PE of 33. On a forward price to OCF basis, it's trading at over 28, both if you look back going to January of 2024 is near the higher end of where this stock has traded for according to these metrics in this time. I can understand why everyone else is excited about Apple stock, but at these valuations, I'm not very excited about Apple and I have this stock rated as a hold."

The speaker outlines that despite Apple's strong revenue figures and innovative product updates, its trading at peak valuations makes it less attractive. While investor enthusiasm remains high, the elevated forward PE and OCF multiples suggest caution, leading to a hold rating on the stock.

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