Apple shows prevailing Real Value of $177.06 per share. The current price of the firm is $167.95. At this time the firm appears to be under valued. Macroaxis approximates value of Apple from analyzing the firm fundamentals such as Current Valuation of 847.73B, Return On Equity of 49.36% and Profit Margin of 22.41% as well as examining its technical indicators and Probability Of Bankruptcy. In general, we favor to go long with undervalued instruments and to trade away overvalued instruments since at some point assets prices and their ongoing real values will blend.
Goldman Sachs came out and rated Apple with a neutral and placed a price target of $161 on the stock. They were quoted as saying the iPhone X was a “not so super cycle”. However, to help the news of lackluster iPhone sales, Apple continues to grow their music streaming service monthly by 5%, compared to 2% for Spotify, according to the WSJ. Not only that, but with the addition of Apple’s home device, the product diversification is helping the company to rely less on iPhone revenue.
Apple is number one stock in market capitalization category among related companies. Market capitalization of Consumer Electronics industry is presently estimated at about 840.78 Billion. Apple totals roughly 811.23 Billion in market capitalization claiming about 96% of stocks in Consumer Electronics industry.
Apple is rated second in five year return category among related companies. It is rated fourth in beta category among related companies totaling about 0.65 of Beta per Five Year Return. The ratio of Five Year Return to Beta for Apple is roughly 1.53
Apple is not too risky asset. Calculation of real value of Apple is based on 2 months time horizon. Increasing Apple time horizon generally increases accuracy of value calculation and significantly improves predictive power of the methodology used.