Apple Inc. (AAPL) Fair Value & PE Analysis
Consumer Electronics · NASDAQ
Current Price
$291.13
PE Ratio (TTM)
34.9x
Intrinsic Value
$357.98
+18.7% margin of safety
What Is Apple Inc.'s Fair Value?
As of 2026-06-12, applying a 35.0x earnings multiple to Apple Inc.'s (AAPL) earnings per share of $8.33 yields a fair value estimate of $357.98 per share, versus a market price of $291.13.
Fair value from earnings multiples is sensitive to the multiple you choose. Across the sensitivity grid the estimate spans $303.89 to $419.03. This is a relative estimate anchored to earnings, not a statement of fact. For a cash flow based view, see the intrinsic value estimate on the DCF page.
How our PE model works · Recalculate in PE mode · AAPL intrinsic value (DCF view)
Is Apple Inc. (AAPL) Overvalued?
At $291.13, AAPL trades about 18.7% below its PE-based fair value estimate, a modest discount to its earnings power, though not enough for us to call it cheap outright.
COMPETITIVE MOAT
↑Unrivaled Ecosystem Lock-in
Apple's integrated hardware, software, and services create a sticky ecosystem. This makes switching to competitors difficult and costly for users, fostering immense customer loyalty.
↑Dominant Brand Equity
Apple commands exceptional brand recognition and desirability. This allows premium pricing and drives consistent demand, even in competitive markets.
↑Massive Installed Device Base
A vast number of active Apple devices provides a huge platform for services. This fuels recurring revenue streams and strengthens the network effect of its offerings.
INVESTMENT RISKS
↓AI Integration Costs
Apple's AI ambitions face significant memory chip costs. This pricing dilemma could impact profitability or necessitate difficult trade-offs in product development.
↓Intensifying Competition
While strong, Apple faces increasing competition across all its product categories. Competitors are constantly innovating, potentially eroding market share.
↓Regulatory Scrutiny
Apple's market dominance and ecosystem control attract significant regulatory attention globally. This could lead to forced changes in business practices or increased costs.
Base case
AAPL base case PE valuation
Intrinsic Value
$357.98
Margin of safety
+18.7%
Expected annual return
+4.2%
Base case assumptions: 11.7% annual earnings growth, 35x target PE, 10% discount rate, 5 year projection. Data as of 2026-06-12.
This base case uses default assumptions and is not financial advice. The fair value changes significantly when the target PE or earnings growth rate changes. Open the calculator to set your own assumptions and see the full sensitivity range.
Customize the AAPL PE valuation
Adjust the target PE, earnings growth, and discount rate to see how the fair value and margin of safety for Apple Inc. respond.
Open PE Calculator for AAPLCompany Overview
Apple Inc. is a global technology corporation that specializes in the conceptualization, production, and sale of a diverse suite of electronic devices. Its comprehensive hardware lineup features the well-known iPhone smartphones, Mac personal computers, and versatile iPad tablets. The company also supplies a range of wearables, smart home products, and accessories, including AirPods, Apple TV, Apple Watch, items from the Beats brand, and HomePod speakers. Beyond its device offerings, Apple delivers essential support services like AppleCare and robust cloud solutions. It oversees key digital platforms, prominently the App Store, which acts as a central hub for customers to discover and download countless applications and digital content, from e-books and music to videos, games, and podcasts. The company also generates revenue via advertising, leveraging both its proprietary ad platforms and third-party licensing deals. Apple's ecosystem is further bolstered by a wide array of subscription-based services: Apple Arcade for gaming, Apple Fitness+ for personalized wellness, Apple Music for curated audio experiences and on-demand radio, Apple News+ for access to news and magazines, and Apple TV+ for exclusive original video programming. Its financial services portfolio includes the co-branded Apple Card and the mobile payment system, Apple Pay. Additionally, Apple strategically licenses its intellectual property. The company serves a broad clientele that spans individual consumers, small and medium-sized enterprises, as well as institutional clients in the education, corporate, and governmental sectors. Products are distributed through a multi-channel strategy, utilizing Apple's own physical retail locations and online storefronts, a dedicated direct sales team, and collaborations with external partners such as mobile network providers, wholesalers, general retailers, and authorized resellers. The App Store additionally functions as the primary conduit for third-party applications designed for its devices. Founded in 1976, Apple Inc. is headquartered in Cupertino, California.
Financial Metrics — AAPL PE Stock Valuation Data
PE Ratio (TTM)
34.9x
PEG Ratio
1.21
Earnings Yield
2.86%
ROE (TTM)
146.7%
Revenue/Share (TTM)
$30.69
Dividend Yield
0.36%
Debt/Equity
0.80x
Frequently Asked Questions
What is the PE ratio of AAPL?
The trailing twelve-month PE ratio of AAPL reflects how much investors pay per dollar of Apple Inc.'s earnings. This metric is most useful when compared to Consumer Electronics peers and the company's own historical range.
Is AAPL overvalued based on PE ratio?
AAPL's PE of 34.9x combined with a PEG ratio of 1.21 provides a growth-adjusted perspective. A PEG near 1.0 suggests the PE ratio is reasonably justified by the earnings growth rate. Keep in mind that PE-based valuation works best for profitable, mature companies — for high-growth or cyclical Consumer Electronics, a DCF analysis may be more appropriate.
How do I value AAPL stock using PE ratio?
To value Apple Inc. using PE: (1) Compare the current PE (34.9x) against the Consumer Electronics median to assess relative pricing, (2) check the PEG ratio (1.21) to adjust for growth expectations, (3) review the 5-year PE range to identify where the stock sits historically, and (4) estimate fair value by multiplying a target PE by forward EPS estimates. This relative approach complements DCF's absolute valuation.
What is the PEG ratio of AAPL?
AAPL's PEG ratio is 1.21, calculated by dividing the PE ratio (34.9x) by the expected earnings growth rate. A PEG near 1.0 suggests the stock is fairly priced relative to growth. Note that PEG accuracy depends on the reliability of growth estimates.
Should I use PE ratio or DCF for AAPL stock valuation?
PE ratio gives a quick relative read — how AAPL is priced versus Consumer Electronics peers. DCF provides an absolute value based on projected free cash flows. For AAPL, with a strong ROE of 146.7%, both methods are worth using — PE for a market-relative check, DCF to stress-test whether fundamentals justify the price. Each method has blind spots: PE ignores capital structure and cash flow quality, while DCF is sensitive to growth and discount rate assumptions.
Learn More
- See AAPL DCF Valuation → — Intrinsic value via Discounted Cash Flow analysis
- PE Methodology — Step-by-step guide to PE ratio stock valuation
- DCF Methodology — Guide to discounted cash flow analysis
- PE Ratio — Understanding the price-to-earnings ratio
- Intrinsic Value — How to evaluate stock fair value
Related PE Valuations
All Technology valuationsP/E and DCF value AAPL with different methods and assumptions, so the two conclusions can differ. Compare the DCF intrinsic value.
Price as of 2026-06-12. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.