Apple Inc $AAPL - A Valuation On 27th September 2021

The first $2T company in US history has a lucrative ecosystem of products and services. Will vertically integrating the business further help them manage costs and defend margins?

Summary

Apple changed the game with the iPhone and have built a lucrative ecosystem of products/services around this. They’re continually reinvesting in R&D and acquisitions and will continue to expand into new markets and products. Disruptive innovation here is unlikely, and the name of the game is incremental improvements. By vertically integrating the business further and bringing more of the supply chain in-house, they can control costs, which will help offset pressure on prices from the competition with Samsung, Google and cheaper Asian products.

Market Price = $146.92
Estimated Value = $117.84
Monte-Carlo Price Percentile = 67%
Rating At Current Price = HOLD

If I had Apple in my portfolio, I would either Hold or slightly Reduce the size of the position because my valuation suggests it is slightly overvalued.