Justin Sullivan
Summary
- Two valuation models provide insights into Apple’s trajectory: one suggests a fair price of $276.29, with a 48.6% upside, while the other proposes $307.73, indicating a 61.8% upside.
- Projected future prices are promising: $401.14 with a 19.5% annual return in the first model, and $439.27 by 2029, yielding a 22.7% annual return in the second.
- Despite potential risks like sales declines and market pessimism, Apple’s commitment to innovation and resilience bolsters its outlook for sustained growth and market leadership.
- The rating on Apple is upgraded from buy to strong buy, reflecting confidence in its future prospects.
- Apple’s ability to navigate challenges while maintaining its leadership in the technology sector reaffirms its position as a favorable long-term investment choice.
Thesis
In my previous article about Apple, Inc. (NASDAQ:AAPL), I assessed Apple and elucidated why we should disregard the move by Chinese authorities to ban Apple devices for employees of state-owned enterprises. At that time, the fair value stood at $224 with a projected future price of $308.9.
In this article, I will reassess Apple using the updated financial information available from Q1 2024. As you will observe, Apple is significantly undervalued, with even the most conservative model indicating a fair price of $276.29 and a future price of $403.14.
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