Apple CAPE ratio

The CAPE ratio for Apple Inc. compares the company’s current stock price to its average inflation-adjusted earnings over the past 10 years. This long-term valuation metric helps smooth out short-term volatility and provides a clearer picture of Apple’s relative valuation. A high CAPE ratio suggests Apple may be overvalued, indicating lower future returns, while a low CAPE ratio signals it could be undervalued, offering potential for growth. Investors use Apple’s CAPE ratio to assess whether its price is justified based on long-term earnings potential or if it’s due for a correction.