Apple Inc. (NASDAQ:AAPL) continues to perform well with another strong quarter under its belt where it posted year-over-year growth in its top and bottom lines. However, the stock still seems undervalued when compared to other tech stocks.
Trading at a multiple of 18 times earnings, it is nowhere near Amazon’s multiple of over 247, Netflix’s multiple of 206, and even Alphabet’s stock that trades at almost 34 times its earnings. Even at a modest multiple of 30, which for the tech industry is by no means high, Apple’s price would be over $260 per share.
Of the aforementioned companies, only Netflix’s returns of almost 75% were higher than Apple’s yield of over 49%. Amazon’s stock yielded just 27% returns for its shareholders while Google’s stock appreciated by 16%.
Apple may be without its visionary Steve Jobs but the brand is still strong and new releases still garner lots of hype and attention from fanatics. The company also issues a dividend, and although it is only 1.5% it is still more than what is offered by most companies in the tech sector.
Apple is a household name around the world and has established a solid reputation for itself, yet its stock does not appear to reflect that. It could be that the hype factor has been now transferred to other companies that are more often being in the news for new innovations and advancements. Although Apple may not be coming up with new technologies the way it used to, the stock definitely deserves a higher value given how well it stacks up against its competitors.
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