Drop Apple Stock, As Overvaluation Won’t Survive ~5% On Treasuries

Summary:

  • Apple’s high valuation compared to its growth trajectory is puzzling, but its consistent earnings and quality justify a premium.
  • Comparing Apple to a “safe-haven asset” like the U.S. government debt suggests that Apple’s valuation may be benchmarked against the Treasury yield.
  • With neutral growth prospects, potential risks, and rising Treasury yields, Apple’s P/E ratio of 30x seems unsustainable. A rerating is likely imminent.

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The Apple Safe-Haven Argument

Why are investors paying close to 30x earnings on Apple (NASDAQ:AAPL) stock, paying a 50-60% premium to the S&P 500 (SP500) ? I have long reflected on this question. Because how I see it, Apple’s


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This is market commentary only, not financial advise.

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