Is Apple stock overvalued?

[Southie]

Re: Is Apple stock overvalued?

@arshad5

Noticed Apple is currently at 633 which is around 40% more than what it was a year ago.

@arshad5

I don’t know anything about apple however after a quick look at the stock, my view is that the company may do well in the short term, however over the longer term its performance is debatable. It is realistically priced at current price of $610. Samsung is hot on the heels of Apple and secondly Apple would need to keep on producing sought after new products to keep the sales coming in.

Conclusion : Short term -Good. Long Term : ??

per your October 20 2012 post, the short term price action for AAPL was expected to be positive. If anyone had heeded that call, he she got burnt. AAPL kept falling to 400. It first reached 400 circa Marc h 2013. Then again circa June 2013. It is quite meaningless to pick an arbitrary time frame and state it is up 40 pct from a year ago! One has to take a look at how far off ones prediction.was for the stock.
so let us break in down.

Oct 20 2012 AAPL at 610. Lost 25 pct through June 2013. During same period Snp 500 went from 1430 to 1631. A gain of 14 pct. Or a differential of 39 pct!

AAPL now at 633. So a gain of 3.7% since Oct 20 2012. Snp500 went from 1430 to 1925. A gain of 34.6 pct. Or a differential of 31 pct.

March 17 2012 is when thread started. AAPL at 585. so gain of 8.1 pct. Snp500 at 1404. Gain 9 39.4 pct. Differential of 31 pct.

So was AAPL overvalued in March 17 2012 and Oct 2012? The results certainly bear that out. Regardless of how AAPL did in the last 12 months.