Is Apple, Inc. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Apple, Inc. has moved from very expensive to expensive, indicating a slight improvement in its valuation outlook. Despite this change, the company appears to be overvalued based on its current metrics. The P/E ratio stands at 31, which is higher than the peer average of 35.56 for Motorola Solutions, Inc. and 30.27 for Garmin Ltd. Additionally, Apple’s EV to EBITDA ratio of 22.29 and Price to Book Value of 45.60 further support the notion of overvaluation compared to its peers.
In terms of performance, Apple has shown strong returns over various periods, with a 5-year return of 111.97%, outperforming the S&P 500's 91.29% during the same timeframe. However, its year-to-date return of 0.75% significantly lags behind the S&P 500's 13.30%, suggesting that while the stock has performed well historically, it may be struggling to maintain momentum in the current market environment.