AAPL Sits at 14.5% Overvaluation, GuruFocus Says
A recent large block of Apple call options was purchased by an options trader, betting on a near-term price increase above $340.
The transaction took place when shares were trading at $321.99 and resulted in a mark-to-market gain of 28% or approximately $626,000 on an initial investment of $2.21 million.
GuruFocus' GF Value model estimates Apple's intrinsic value at $285.11 per share, indicating the company is modestly overvalued by about 14.5%, suggesting a limited margin of safety for new investors at current prices.
The elevated price-to-earnings ratio of 37.45x, significantly higher than its 5-year median P/E of 30.72x, also reflects strong investor confidence in Apple's earnings growth potential but signals stretched valuation relative to historical norms.