Is Apple, Inc. overvalued or undervalued?

As of 31 October 2024, the valuation grade for Apple, Inc. has moved from fair to expensive. The company is currently overvalued, as indicated by its P/E ratio of 31, which is higher than the industry average P/E of approximately 30.03 for Motorola Solutions, Inc. and 26.71 for Garmin Ltd. Additionally, Apple’s price-to-book value stands at 45.60, and its EV to EBITDA ratio is 22.29, both of which suggest a premium valuation compared to its peers.
Despite a strong return on equity of 145.66% and return on capital employed of 109.34%, the high valuation metrics indicate that Apple, Inc. is priced for perfection. The stock has underperformed the S&P 500 year-to-date with a return of -19.54% compared to the index's 2.44%, reinforcing the notion that the current price may not be justified given its valuation relative to peers and historical performance.