Using the industry peer median P/E multiple (trailing + forward), Apple Inc. (AAPL) has a fair value of $199.52 based on 5 comparable companies in the Consumer Electronics industry.
USD in millions except Fair Price. Subject company highlighted.
| Mkt Cap ($M) | Trailing P/E | Forward P/E | |
|---|---|---|---|
| Apple Inc.AAPL | 3,790,487 | 33.9x | 29.8x |
| NVIDIA CorporationNVDA | 4,342,817 | 36.5x | 21.6x |
| Alphabet Inc.GOOGL | 3,644,584 | 27.9x | 26.3x |
| Microsoft CorporationMSFT | 2,755,206 | 27.2x | 22.5x |
| Taiwan Semiconductor Manufacturing Company LimitedTSM | 1,691,373 | 31.4x | 32.5x |
| Meta Platforms, Inc.META | 1,499,714 | 25.3x | 20.0x |
| Industry Median | 27.9x | 22.5x | |
| (*) Profit after tax | 112,010 | 127,292 | |
| Equity Value | 3,121,774 | 2,865,820 | |
| (/) Outstanding shares | 15,005 | 15,005 | |
| Fair Price | $208 | $191 | |
This P/E relative valuation uses the industry peer median Price-to-Earnings ratio to estimate fair value. Both trailing (last 12 months) and forward (next fiscal year analyst estimates) P/E multiples are computed independently.
The industry median trailing P/E is applied to the company's TTM net income, and the forward P/E to analyst-estimated net income. Each produces an equity value divided by shares outstanding to yield a fair price per share. The selected fair value is the average of the trailing and forward legs.