Don’t catch the falling knife although Apple (AAPL) is super under value now. Sarcastically most Analysts have a BUY or OVERWEIGHT call on AAPL but downgrade the target price. You are going to lose money if you just follow blindly the recommendation of the analysts. This is a classic example of combining Fundamental Analysis, Technical Analysis, Analyst Recommendation and the interpretation of Target Price, and develop a Trading Plan or Investment Plan.

Fundamental Analysis

• Last Traded Price = $439.88
• Current PE = 9.96
• Forward PE = 7.73
• PEG = 0.48
• P/B = 3.49
• Current Ratio = 1.50
• Debt / Equity = 0
• ROA = 28.54%
• ROE = 42.84%

Using DCF Valuation Method

• Intrinsic Value (7% annual growth rate for the next 10 years) = $713.54
• Intrinsic Value (12% annual growth rate for the next 10 years) = $918.80
• Operating Cash Flow = $56,728 Million
• No. of Shares Outstanding = 939.06 Million
• Beta = 1.08
• Discount Rate = 5%
• Debt per Share = 0
• Cash per Share = $42.40

• AAPL breakdown from a Falling Wedge with Price Target of about $400 (short term).
• AAPL also breakdown from a Head & Shoulders with neckline at $525 and the price target is $350 (long term).
• Currently AAPL is trading down trend below 20D, 50D and 200D SMA.

Last Analysis on AAPL.

Last Intrinsic Calculation for AAPL.

Recent Upgrade / Downgrade

Analyst Recommendation