Value Investing Blog

AAPL stock analysis report

Apple inc. (AAPL) has seen its stock price fall more than 25% from its $700 September level. And although there are some reasons for this substantial drop, it seems like this is a typical case of a severe overreaction by our dear friend Mr. Market.

The fact is that Apple has had some trouble with its new map technology, and is losing some market share to competitors like Google (GOOG), Amazon (AMZN), and Microsoft (MSFT). However, everyone already knew that the technology sector is highly competitive, right? Nothing new under the sun there. And despite this competition, Apple is still expected to own around 50% of the tablet market in 2016, which is only a slight drop from its current level. In addition, iOS profit margins far surpass Android profit margins, and Apple is still producing amazing products that everybody seems to love! A solid company, but is it cheap at $520?

110% undervalued

We let our spreadsheet crunch some numbers and it returned an intrinsic value estimate of $1,089 for Apple, which would imply a potential 110% upside from its current level!

Want to know the whole story? Then click the button below to download the complete analysis report (pdf) for free.

FREE AAPL REPORT