Apple's Valuation Hits New Heights as Some Investors Sound Warning Bells

Apple's stock has briefly reclaimed its status as the world's most valuable company, but some investors are questioning whether it's due for a decline. The tech giant's price-to-earnings (P/E) ratio is significantly higher than its average over the past decade, with a current multiple of 35.

Historically, Apple's P/E has averaged around 26, but prior to the pandemic, it was trading at a multiple closer to 20. This suggests that investors are willing to pay more for the company's shares, even though its growth rate is solid at 16% last quarter.

However, some analysts believe that Apple's valuation may be too high, citing concerns about supply and memory costs. The Motley Fool Stock Advisor analyst team has identified other stocks as better investments, with a total average return of 906% compared to 208% for the S&P 500.