Is Apple stock overvalued?

[The_Player]

Re: Is Apple stock overvalued?

@Southie

Thanks Player. If I recall, enterprise value = market cap + debt-cash. Apple has no debt and 100B cash. So I suspect if enterprise value has been on an upward slope, the market cap should be on an even greater upward slope. So P/FCF should signal even greater overvaluation.

Thanks for introducing Enterprise value though. For companies with high debt, this can really shed greater light.

Your definition of EV is correct. Since market cap has risen at such a rapid clip, EV has gone through the roof while FCF has not kept pace.