Apple: Why I Am Buying The Earnings Growth Despite The Premium Valuation

The Curious Analyst 5.32K Followers Follow Summary I'm rating Apple a Buy, with a price target of $414. My main growth drivers are services, the iPhone 18 and foldable cycle, AI monetization, Mac and iPad growth, margin normalization, and continued share repurchases. AAPL isn't cheap at 36.84x FWD non-GAAP earnings and a 3.49x FWD non-GAAP PEG ratio. However, applying Apple's 29x 5-year average FWD non-GAAP P/E to my $14.27 EPS estimate produces a $414 price target. The main risks are slower services growth, persistent memory and component inflation, weaker-than-expected AI monetization, and a foldable iPhone cycle that fails to generate meaningful incremental demand. JasonDoiy/iStock Unreleased via Getty Images Investment Thesis I am rating Apple Inc. ( AAPL ) a Buy, although I want to be clear about where my bullishness comes from because AAPL is hardly a conventional value stock. At $326 per share (as of writing This article was written by The Curious Analyst 5.32K Followers Follow My background is in Financial Engineering and I have long since been interested in analyzing strong solid companies with a rare financial Profile. My primary area of specialization is in quantamental analysis, where I use a combination of data driven models and fundamental research. My approach is centered on a structured process that combines top-down screening with bottom-up company specific analysis .I write on to share ideas with a wider audience and also learn more about companies and other analysts. My goal is to make unique ideas & research accessible to retail and professional investors alike, while maintaining analytical depth and a clear investment thesis.Associated with another author Kennedy Njagi Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in AAPL over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.