Valuation risks persist with high EV/EBITDA (24.6x) and forward PEG; 10% EPS growth is needed to justify premium multiples or risk share price declines and multiple compression.
When I last covered Apple, Inc. (NASDAQ:AAPL) on September 3rd, 2025 (with a “buy” rating) in my article “Apple: It’s Time To Buy,” the stock was starting to break resistance levels formed during the
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The rating is based on resilient gross margins, strong free cash flow yield, capital efficiency, and a technical setup suggesting limited further downside, positioning AAPL for outperformance in 2026.
AAPL’s elevated EV/EBITDA (24.6x) and forward PEG require at least 10% EPS growth in the next report; failure to deliver could trigger multiple compression.
AAPL’s free cash flow yield (2.54%) outpaces Microsoft, and its low capex intensity enables sustained buybacks and EPS durability, supporting share price even with modest growth.
