- What is the value of Apple stock? If the stock has exceeded its value then shouldn’t even investors be selling?
- The article applies 6 different valuation methods to answer that question.
- If the stock is no longer cheap then what are the reasons for holding on to the stock?
As a value investor and owner of Apple (NASDAQ:AAPL) stock, I am always concerned about its valuation. The whole idea of value investing is buying a stock below its value, so the million dollar question is “Has Apple exceeded its worth?” If price has exceeded value then shouldn’t investors be selling? I attempt to answer these questions and provide prospective answers.
To value the stock, I applied six different valuation methods: Historical Multiples, Industry Multiples, Discounted Dividend Model, Residual Income Model, the F Wall Street Method, and Discounted Cash Flow. So let’s jump in: