The Motley Fool asks: Where Will Apple Stock Be in 5 Years?

Not reading this article is probably a wise decision.

Shares could perform in line with the S&P 500’s long-term average

Investors can follow a straightforward exercise to try and figure out where Apple’s stock price will be in late March 2031. It’s important to consider both the valuation and profit gains.

We just released a brand-new report with the full story and the company’s name.

Apple shares current trade at a price-to-earnings ratio of 31.5. I believe it’s reasonable that this multiple could drop to 30 in five years, which is still a premium valuation.

On the other hand, sell-side analysts hold a consensus view that diluted earnings per share will rise at a compound annual rate of 11.6% between fiscal 2025 and fiscal 2028. If we assume that this pace of growth continues in the years after this explicit forecast period, then Apple’s stock price will be around $410 in five years. This translates to a 10.5% annualized gain.

This is obviously a very rough guide that may or may not prove to be correct. Apple’s earnings could surprise to the upside or disappoint to the downside. And market sentiment is also extremely unpredictable, which will impact the stock’s valuation. [Seriously?-ed]

That expected rate of return mimics the S&P 500’s long-term average. But if the widely followed benchmark keeps up its performance from the past decade, then Apple will lag the market.

Source: The Motley Fool

NB: The Motley Fraud is not a reliable source of anything but bad stock picking advice…

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