Why Apple's Valuation Makes Sense

(13min)

Summary

  • With Apple selling off so dramatically in recent months, I decided to assess whether it was worth buying the stock.
  • To do this, today, we will walk through Apple's historic valuation dynamics.
  • Then, we will assess its current valuation and return profile.
  • In short, I like Apple for conservative, dividend-growth investors, as it has all the attributes we'd want in a dividend-growth stock.
  • For more aggressive investors, targeting higher returns, I do not like Apple today, though it's certainly a great dividend-growth stock to own in my view.
  • Looking for a helping hand in the market? Members of L.A. Stevens Research get exclusive ideas and guidance to navigate any climate. Learn More »
Apple Store at 5th Ave in Manhattan, New York City

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What We'll Discuss

In this brief review of Apple, we will discuss a few topics:

  1. The attractive nature of the Apple business and how its business model influences its valuation
  2. The evolution of Apple's valuation over the years
  3. Its return

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This article was written by

17.19K Followers

Louis Stevens is a former U.S. Army engineer officer who holds an MBA and a BA in political science. Since beginning his journey publishing investment research, Louis has become one of the leading analysts in the investing community, ranking in the top .1% according to TipRanks: https://www.tipranks.com/experts/bloggers/louis-stevens.

Louis created L.A. Stevens Research in which he runs the LAS Index, a basket of stocks chosen via his proprietary method for investing, which has consistently outperformed the indices since its launch.

Whether you're just getting started, a busy professional, or seasoned veteran running a fund of your own, Louis has served folks like yourself throughout his career in equity research and investing. Learn more.

Analyst’s Disclosure: I/we have a beneficial long position in the shares of AXON either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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