With a market capitalization of $1.27 trillion, declining revenues/margins year-over-year, share appreciation of 67% since June 2019 and 100% since early-Jan 2019, AAPL has reached stretched valuations.
• Trailing P/E ratio is 23.70, the highest level since June 2008 • Revenue growth is down 2% YoY • Earnings growth is down 9.8% YoY • Dividend yield is 1.1%, the lowest level since AAPL first introduced a dividend in 3Q 2012. Since 2012, AAPL’s yield has averaged 1.94%.
This is not a doom and gloom projection, as the company has an indisputable solid brand and consumer loyalty, with people continuing to dish out $1,000+ for new iPhones, however, the valuation of the company has become overextended and expecting the stock to see a correction in Q1 2020 as investors look to rebalance their portfolios.
Youre are correct I am anticipating a 25% correction. But not yet. 289 is my target
DavideG
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@AlexCar, Agreed that there is likely a bit more headroom here. I am currently projecting downside to ~$221, which would be the return to a $1 trillion market cap.
AlexCar
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@DavideG, I have around the same target. Question, your'e obviously smarter then the masses on Trading view. Do you have any platforms where you publish?
DavideG
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@AlexCar, Thanks for the kind words. I only publish on TradingView (intermittently at that), as it is a personal interest of mine, but not a profession.