As of writing this article, the Apple Inc. share price hovering in the range of 231 to 233.28. Apple share price had broken the resistance level of 230 which had being a challenge from July of 2024. Bro in Finance proprietary machine learning model has analysed the data from 2014 with macro economic data has predicted that the APPLE share price will rise to $250 by November of 2025. However, it will also in the short term there is a possible that the share price will fall down to the $220 level from the current $230 which will give our investor a chance to buy the dip. Here is our prediction and our past prediction which has acted as a mean value. The error of the precited value is RMSE 7.26. So we believe our prediction model is fairly accurate to trade on the long term, not short term.
Here are some of the key information about Apple Inc.
Revenue Growth and Profitability
According to our analysis, the main driving force of revenue growth and the profitability of apple Ince is based two segments which are Strong Product Ecosystem and Growth in Services. Like a car company or a manufactures of printers apple has a ecosystem where their all the system are interconnected even if the devices are connectable to android devices users still prefer them to be connected to a apple device to have seamless connectivity. as we all know the Sales of Smart phone market is stagnated which had being predicted by team of apple that’s why they had being trying so hard to introduce subscription services such as Apple Music, iCloud and Health, etc. Which now accounted for 20% of the revenue of Apple Inc.
Valuation
At Bro in Finance, we believe market based valuations and valuation based on comparable companies is much more accurate to value a company than traditional methods such as DCF valuations since it does not take into the what the market is willing to pay for a stock since majority of market players are managing large sovereign investment funds who are willing pay a premium to showcase they own highly reputable companies from US. Back into the topic of P/E ratio of currently hovering at 35.21 which is healthy in our opinion that’s why we believe the company is undervalued by 8.68% and we strongly believe that it will reach $250 by November of 2025.
Here is the summary of the analysis of Apple Inc,
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Disclaimer: stock trading carries significant risk and may not be suitable for all investors. This analysis, based on Bro In Financeโs proprietary data, is provided for informational purposes and should not be considered investment advice.