Introducing Valuation Models! 
Key Takeaways:
- Apple stock could reasonably reach $260/share by the end of September 2027, based on our valuation assumptions.
- That implies a 22.6% total return from today’s price of $212/share, with an annualized return of 9.5% over the next 2.2 years.
- While Apple’s growth has slowed compared to past decades, the company continues to generate strong cash flow, maintain high margins, and benefit from an unmatched global brand.
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Apple (AAPL) is one of the world’s most valuable companies, best known for the iPhone, but also a leader in wearables, services, and computing. Its ecosystem of devices, software, and services supports one of the stickiest customer bases in tech.
Though hardware growth has matured, Apple is steadily expanding its services business, which carries higher margins and recurring revenue.
The company also returns significant capital to shareholders through buybacks and dividends.
Here’s why the stock could have 23% upside today.
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What the Model Says for Apple Stock
We ran a valuation forecast on Apple using TIKR’s Valuation Model to estimate its upside through late 2027.
Using assumptions of 5.3% annual revenue growth, 31.6% operating margins, and a 27.9x P/E multiple, the model suggests Apple stock could rise from $212/share today to $260/share.
That represents a 22.6% total return and 9.5% annualized return over the next 2.2 years.
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Our Valuation Assumptions
TIKR’s Valuation Model lets you plug in your own assumptions for a company’s revenue growth, operating margins, and P/E multiple, and calculates the stock’s expected returns.
Here’s what we used for Apple stock:
1. Revenue Growth: 5.3% CAGR through 2028
Apple has grown revenue by 2.0% over the past year and 8.5% annually over the last five years. Our 5.3% forecast reflects a return to more stable growth, driven by services, wearables, and device upgrades, while staying conservative given hardware saturation.
2. Operating Margins: 31.6%
Apple’s EBIT margins have averaged 30.5% over the past three years and 31.5% over the last twelve months. We assumed a slight improvement to 31.6%, supported by continued expansion in high-margin services and strong cost control.
3. Exit P/E Multiple: 27.9x
Apple currently trades at around 29.3x forward earnings. We used a slightly lower 27.9x multiple, in line with its 3-year average, to remain conservative while still recognizing the company’s premium valuation and steady cash generation.
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What Happens If Things Go Better or Worse?
TIKR’s valuation tool allows investors to test a wide range of outcomes based on how Apple performs through 2030 under different scenarios (these are estimates, not guaranteed returns):
- Low Case: Weaker iPhone cycles and muted services growth → 3.5% annual returns
- Mid Case: Steady performance and margin stability → 8.9% annual returns
- High Case: Better-than-expected hardware and services growth → 13.6% annual returns
Even in a cautious case, Apple still shows potential for positive returns. But in the upside scenario, it could offer double-digit compounding backed by one of the world’s strongest brands.
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TIKR Takeaway
Apple remains one of the most valuable and resilient companies in the world, with strong brand loyalty, a massive installed base, and expanding high-margin services.
With an estimated 22.6% upside by late 2027 and projected annual returns of 9.5%, Apple may appeal to investors looking for steady compounders with defensible market positions.
This stock is best suited for long-term investors who want reliable free cash flow, broad consumer reach, and continued innovation across hardware, software, and services.
Is Apple stock worth buying today? Use TIKR’s Valuation Model and analyst forecasts to see if it’s undervalued.
Value any stock with TIKR’s Valuation Model (It’s free!) >>>
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
