Eldenminaj
2021-09-10

Is Apple overvalued now? Is it a good buy?

$Apple(AAPL)$


With Apple Market Cap hitting 2.5 Trillion USD, I am sure these questions are in your mind. 


Here are my key takeaways:

-With 94.77 Billion Free Cash flow for Trailing-Twele Months, current valuation of Apple could be 260 USD per share with a Discount Rate of 5% and Growth Estimate of 5% for the next 10 years. 


-Apple has the strongest MOAT among all smartphone producing companies, which is 20% of the global market share. 


-Apple's profits have grown at 9.6% yearly for the past 5 years. Free Cash flow has grown at a CAGR rate of 9.4% for the past years. Share buybacks has increased from 33 Billion USD in 2017 to 72 Billion USD in 2020. 


-Apple is currently working on launching Apple Cars, and its rumoured to began production by 2024. With the Tech and softwares that apple has, I am sure their cars will beat Tesla. 


-Sales and revenue of Apple is strong. With new products and constant investment into R&D, Apple is has become a brand status for everyone. 


-Apple largest contributor of revenue is Iphone which is at 44%. The second biggest is Apple's services which brought it 22% of revenue followed by 24% for ipads and Macs and 11% for weareables. 


-Warren buffet holds 5.4% of Apple Shares outstanding, and its the biggest holding of his Berkshire Hathaways Portfolio at 44.6% . If Buffet himself would bet a 44.6% stake of his portfolio into this company, investors can be assured that it is a solid company. 


My key Takeaways:

-Apple is a great company, with a strong fundamental Moat. The greatest in the world in fact. 

-I would buy, as I can foresee Apple taking more market share in the coming years. (Expected to take 40% of market share by 2024)

-With new rollouts and new projects in apple, more revenue is expected to be brought it in the voming years. 


Conservative Valuation: 150-160 (Fairly Valued)

Aggresive Valuation: 200-260 (Undervalued)


What do you guys think? Let me know!

# 今天什么值得买？晒晒你的交易计划！

免责声明：上述内容仅代表发帖人个人观点，不构成本平台的任何投资建议。

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评论（623）

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  • LimLS
    ·2021-09-18
    Short term, maybe over-valued, maybe not. That's for market to decide. Long term, Apple is worth more, so it's undervalued with a long term view since it's a excellent business with a strong brand
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  • 变胜龙
    ·2021-09-18
    It seems quite pricey for now but you would never know the if it can hit $200 after Sep/Oc… keep monitorng people 😃
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  • Jane777
    ·2021-09-18
    Apple should have no problem to hit at least $200 for their reputation and brand
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  • panz3l
    ·2021-09-18
    don't think they can get better than Tesla so soon, well hope for more apple hardcore fans to make it happens
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  • HWChua1961
    ·2021-09-16
    I will wait for around $130 to reenter
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  • Kcmt
    ·2021-10-06
    As long as the price per stock doesn't go below 150 I think we can obtain their stocks. They have strong branding worldwide, so it's possible to look at long term aka 5-10 years time
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  • RobinTan
    ·2021-09-16
    wait first lah. fed is having a meeting this month
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  • TimXT
    ·2021-10-04
    I think Apple is a good company for future. However depend on whether they could keep their momentum. I do agree that price below 140 is quite under valued
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  • MinkyHuat
    ·2021-09-22
    Like please
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    收起
    • Weeeeeeeee: 
      done like back pls
      2021-09-23
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  • Kentlieu
    ·2021-09-19
    APPLE DAY has passed recently. The next two week might be the observation time. Apple always the potential one. Just how long are we going to invest in. Ask yourself before u go into it. Set ur plan.
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  • Anzygart
    ·2021-09-17
    Long term, stock will do well. At current prices, I’d wait till it comes down a little more before buying some.
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  • Cedric77
    ·2021-09-16
    Apple is always a good buy. All time buy when dipped if u r investing for Long!
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  • Sunny_Bee
    ·2021-09-28
    Totally agree that Apple is a good share to invest in.
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  • KentcChin
    ·2021-09-27
    USD 145 now should I buy? pls advise
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  • 9moon
    ·2021-09-22
    It seemed fairly valued at current level. We buy to make money, not to hold onto stock.
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  • Eldenminaj
    ·2021-09-20
    thank you so much for the love you guys!
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  • Nyxxiris
    ·2021-09-19
    Probably a keeper for holding long term. Too big to fail.
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  • Eldenminaj
    ·2021-09-17
    thank you so much guys for the loves received on this post!
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  • errnnnyyyy
    ·2021-09-16
    Love apple and its continuous expansions!
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  • Dinesh88
    ·2021-09-16
    This is my only share that I can proudly tell as an apple of my eye.
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