Considering the recent revenue and free cash flow growth of Apple depicted that Apple does not seem to be hitting a point for leveling out the growth of business. In the recent quarter of Apple, there has been a rise in revenue by 30 percent reaching to the point of 51.2 billion dollars. In this particular period, the unit sales of iPhone accounted for 69 percent of the overall sales that has increased by 46 percent since the last year (Apple Annual Report, 2015). Free cash flow has increased by 48 percent and hence based on these evidences, the business of Apple can be identified as healthy.
Currently the stock of Apple is closer the lowest ever multiples of Valuation. As the sale of iPhone 6 delivers strong performance, the stock price has been propelled to new highs since the year 2015. However, the increased concerns regarding the ability of Apple for beating the strong performance of iPhone 6 has resulted in the fall of stock price for Apple reaching down at 120 dollars (Grant, 2015). Currently, a number of investors can be seen pushing the stock of Apple in a territory that has not been found yet. The current PE ratio at which trade is being performed is 12.83 and there is a trade of stock at a considerably discount 15 to its average PE ratio of 5 year.
Currently the Apple stock is being involved in trade maintaining a discount for average valuations of 5 years along with the wider market, keeping aside the concerns related to the segment of iPhone (Liang & Sheng, 2011). However, stock has been offering an excellent attractive opportunity to investors of long term, provided with the strong foundation of the business. Apprehensive investors should consider taking a long position in the stock of Apple before they valuate for staying updated with the wider market. The growth story of Apple stays intact, driven by strong loyalty of brand, other than levering growth under the support of Apple Watch and iPhone (Ofek & Turut, 2013). The credit for the success of Apple can be given to its tremendous integration and innovation. The organization has been successful in developing a strong strategy while shaping information and computer market, seeking benefits out of the competitors. The revenue of Apple has been jumping every year exponentially leading towards increased price of stock. The stock price of the company does not seem to be reflecting the performance of the company as it has been found that there has been some under valuations of the stock price of Apple. All of these evidences about the company can be seen to be considerably higher above the line.