Highly Regarded

Is Apple Inc. (AAPL) Stock Undervalued or Overvalued?

Trailing-twelve-month multiples vs Technology sector peers in our coverage

55% Discount TTM fundamentals · sector averages from covered peers

AAPL trades at 43.3× TTM earnings — a 55% discount to its Technology sector average of 95.4× in our coverage.

The Numbers

P/E (TTM)

43.3×

Sector avg: 95.4×

P/S (TTM)

11.5×

Sector avg: 22.3×

Market Cap

$5.02T

EPS (TTM): $7.90

Revenue (TTM)

$435.62B

Net income: $117.78B

Technology Peer Comparison

How AAPL's multiples stack up against sector peers we cover. Click any peer for its own valuation breakdown.

Stock Price P/E (TTM)
AAPL This page $341.95 43.3×
NVDA $217.23 53.8×
MSFT $539.24 33.7×
AVGO $344.31 72.2×
AMD $562.16 212.1×
PLTR $200.48 466.2×
INTC $95.36 —
CSCO $109.85 42.4×
ORCL $134.50 31.1×
TXN $279.15 51.2×
CRM $246.71 35.8×
QCOM $178.39 36.0×
ADBE $251.65 15.1×

Is the Discount Justified?

October 4, 2026

Apple Inc. trades at a P/E of 42.2x, notably below its sector average of 91.7x. This valuation reflects a company demonstrating robust and diversified growth across its segments. In Q3 FY2026, Apple reported record revenue of $109.4 billion, a 16% year-over-year increase, driven by strong performance in iPhone (up 22%), Mac (up 29%), and Services (up 12%). The Services segment, now a significant revenue contributor with over 1.5 billion paid subscriptions, continues to expand, supported by the rollout of Siri AI. Despite record operating cash flow and a healthy gross margin of 50.1%, the discount relative to the broader technology sector average may be influenced by Apple's immense scale, which can temper expectations for hyper-growth compared to smaller, more specialized tech firms.

Sources

Frequently Asked Questions

Is AAPL overvalued or undervalued?
On trailing-twelve-month earnings, AAPL trades at 43.3x versus a Technology sector average of 95.4x in our coverage — a 54.6% discount. Whether that's justified depends on growth, margins, and risk; see the context above.
What does the P/E ratio tell you?
Price-to-earnings compares a company's share price with its per-share profits. A higher multiple means investors pay more per dollar of earnings — often for faster expected growth — while a lower one can signal slower growth or higher perceived risk.
Why compare against the sector average?
Valuation multiples vary structurally between industries — software typically trades richer than banks or energy. Comparing AAPL with its own Technology peers is more informative than comparing against the whole market.
Is a cheap stock automatically a good buy?
No. A discount can be justified by weak growth or elevated risk (a "value trap"), and a premium can be earned by quality and consistency. Valuation is one input — pair it with the fundamentals and the AI context on this page.

Methodology

Multiples are computed from trailing-twelve-month fundamentals (from company filings) and the latest share price: P/E is price ÷ diluted EPS, and P/S is market cap ÷ revenue. Sector averages use the Technology names in our 50-stock coverage with positive earnings — a deliberately like-for-like, if imperfect, benchmark.

Stocks with negative trailing earnings are compared on price-to-sales instead. Multiples update with prices and fundamentals; AI context refreshes weekly.

Not Financial Advice

This page is for education and information only. Indicators are mechanical calculations, AI commentary can contain errors, and nothing here is a recommendation to buy or sell any security. Do your own research and consider consulting a qualified financial advisor. See our full disclaimer.

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