AAPL - Embedded Expectations Analysis - 2022 02 11
Apple Inc. (AAPL) currently trades near corporate but above historical averages relative to Uniform earnings, with a 25.6x Uniform P/E (Fwd. V/E').At these levels, markets are pricing in expectations for Uniform ROA to remain stable at markets are pricing in expectations for Uniform ROA to remain stable at
Meanwhile, analysts expect Uniform ROA to decline to 53% in 2023, accompanied by 5% Uniform asset growth.
If sustained going forward, these levels would imply a stock price closer to $147, representing approximately 8% equity downside for the firm.
Moreover, the firm's most recent earnings call suggests management may have concerns about products, growth, and their supply chain.
Apple designs, manufactures and markets smartphones, personal computers, tablets, wearables and accessories, and sells a variety of related services. The company's products include: iPhone; Mac; iPad; and wearables, home and accessories, which includes AirPods?, Apple TV?, Apple Watch?, Beats? products, HomePod?, iPod touch? and other Apple-branded and third-party accessories. The company's services include: digital content stores and streaming services; AppleCare, which includes AppleCare + (AC+) and the AppleCare Protection Plan; iCloud, which is the company's cloud service; licensing; and other services, which include Apple Arcade?, Apple Card?, Apple News+, and Apple Pay, a cashless payment service.
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