Apple Stock Valuation Raises Concerns Amid Supply Chain Pressures

Apple's stock price has been subject to scrutiny due to its high valuation. With a forward 12-month price-to-earnings (P/E) ratio of 33.54X, Apple's shares are considered overvalued compared to the broader Zacks Computer & Technology sector.

The company's P/E multiple is higher than that of Alphabet, Microsoft, and Amazon, which stand at 20.47, 24.09, and 23.16 respectively. Despite this, Apple's stock has outperformed its peers, with a 14.8% year-to-date (YTD) return compared to the sector's 15.8%

Apple's iPhone sales have been a significant contributor to its growth, with revenues increasing by 22% year-over-year in the third quarter of fiscal 2026. The company also reported record Services revenues of $30.7 billion in the June quarter, driven by strong cloud and payment services.