Is Apple, Inc. overvalued or undervalued?

As of 31 October 2024, the valuation grade for Apple, Inc. has moved from fair to expensive, indicating that the stock is overvalued. The company exhibits a P/E ratio of 31, a Price to Book Value of 45.60, and an EV to EBITDA of 22.29, which are all above the industry averages, suggesting that investors are paying a premium for its shares. In comparison, Motorola Solutions, Inc. has a P/E of 38.31 and Garmin Ltd. shows a more attractive P/E of 30.27, both indicating that Apple is relatively more expensive.
Despite a strong return of 57.85% over the past three years, which is lower than the S&P 500's 70.41% return in the same period, the recent performance shows Apple lagging in the year-to-date return at -5.01% compared to the S&P 500's 12.22%. This trend reinforces the notion that Apple, Inc. is currently overvalued given its high valuation ratios and underperformance relative to broader market indices.