Apple Inc. (NASDAQ:AAPL) saw significant share price movement during recent months on the NASDAQGS, rising to highs of US$196 and falling to the lows of US$174. Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price. A question to answer is whether Apple's current trading price of US$189 reflective of the actual value of the large-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let's take a look at Apple's outlook and value based on the most recent financial data to see if there are any catalysts for a price change. Check out our latest analysis for Apple According to my valuation model, Apple seems to be fairly priced at around 17.64% above my intrinsic value, which means if you buy Apple today, you'd be paying a relatively fair price for it. And if you believe that the stock is really worth $161.05, there's only an insignificant downside when the price falls to its real value. Is there another opportunity to buy low in the future? Since Apple's share price is quite volatile, we could potentially see it sink lower (or rise higher) in the future, giving us another chance to buy. This is based on its high beta, which is a good indicator for how much the stock moves relative to the rest of the market. Future outlook is an important aspect when you're looking at buying a stock, especially if you are an investor looking for growth in your portfolio. Buying a great company with a robust outlook at a cheap price is always a good investment, so let's also take a look at the company's future expectations. With profit expected to grow by 21% over the next couple of years, the future seems bright for Apple. It looks like higher cash flow is on the cards for the stock, which should feed into a higher share valuation. Are you a shareholder? AAPL's optimistic future growth appears to have been factored into the current share price, with shares trading around its fair value. However, there are also other important factors which we haven't considered today, such as the financial strength of the company. Have these factors changed since the last time you looked at the stock? Will you have enough conviction to buy should the price fluctuates below the true value? Are you a potential investor? If you've been keeping an eye on AAPL, now may not be the most optimal time to buy, given it is trading around its fair value. However, the optimistic prospect is encouraging for the company, which means it's worth diving deeper into other factors such as the strength of its balance sheet, in order to take advantage of the next price drop. So while earnings quality is important, it's equally important to consider the risks facing Apple at this point in time. Every company has risks, and we've spotted 1 warning sign for Apple you should know about. If you are no longer interested in Apple, you can use our free platform to see our list of over 50 other stocks with a high growth potential.
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