Apple Inc. (NASDAQ:AAPL)

The common stock valuation ratios exhibit varied trends over the observed period. Generally, the ratios demonstrate fluctuations, with some periods of increase followed by periods of decrease. A notable increase in several ratios is observed towards the end of the period, particularly in the most recent quarters.

Price to Earnings (P/E)

The Price to Earnings ratio generally decreased from December 2020 through September 2022, moving from 36.00 to 24.82. A subsequent increase is observed, peaking at 32.79 in June 2024, before decreasing to 30.25 in March 2025 and then rising again to 32.34 in September 2025. The most recent value, December 2025, shows a further increase to 35.67. This suggests a fluctuating investor sentiment regarding earnings expectations.

Price to Operating Profit (P/OP)

Similar to the P/E ratio, the Price to Operating Profit ratio shows a declining trend from December 2020 to September 2022, decreasing from 31.00 to 20.74. It then experiences an upward trend, reaching 27.72 in June 2024, followed by a slight decrease and then a significant increase to 30.03 in September 2025. This mirrors the P/E trend, indicating a relationship between earnings and operating profit perceptions.

Price to Sales (P/S)

The Price to Sales ratio demonstrates a more pronounced upward trend overall. Starting at 7.82 in December 2020, it fluctuates but generally increases, reaching a peak of 9.60 in June 2025. Prior to this peak, the ratio was 7.35 in March 2025. The most recent value, September 2025, shows a decrease to 8.74, and then a further increase to 9.60 in June 2025. This suggests increasing investor confidence in revenue generation, or potentially, a premium placed on sales growth.

Price to Book Value (P/BV)

The Price to Book Value ratio exhibits considerable volatility. It increases from 34.75 in December 2020 to 48.89 in September 2022, then decreases to 37.90 in March 2024. A substantial increase is then observed, peaking at 59.17 in March 2025, before decreasing to 43.20 in December 2025. This suggests significant shifts in the market's assessment of the company's net asset value.

In summary, the valuation ratios indicate a period of relative stability followed by increasing valuations in the latter part of the observed timeframe. The Price to Sales ratio shows the most consistent upward trend, while the Price to Earnings, Price to Operating Profit, and Price to Book Value ratios demonstrate more pronounced fluctuations. The recent increases across multiple ratios suggest a potentially positive shift in market perception.

The price-to-earnings (P/E) ratio exhibited fluctuations over the observed period, spanning from December 2020 to December 2025. Initially, the ratio demonstrated a decreasing trend, followed by periods of relative stability and subsequent increases. A detailed examination reveals specific patterns and shifts in valuation.

Initial Decline (Dec 2020 - Jun 2021)

The P/E ratio began at 36.00 in December 2020 and generally decreased to 27.61 by June 2021. This decline suggests that earnings growth was outpacing share price appreciation during this timeframe, or that investor sentiment shifted towards a lower valuation.

Period of Stability (Jun 2021 - Dec 2021)

From June 2021 to December 2021, the P/E ratio remained relatively stable, fluctuating between 25.96 and 27.64. This indicates a period of equilibrium between price and earnings expectations.

Fluctuations and Increase (Dec 2021 - Jun 2022)

The ratio experienced some volatility between December 2021 and June 2022, ranging from 25.03 to 26.21. While fluctuating, it remained within a narrow band, suggesting continued investor confidence.

Subsequent Decline (Jun 2022 - Dec 2022)

A downward trend was observed from June 2022 to December 2022, with the P/E ratio decreasing from 26.21 to 25.69. This could be attributed to broader market conditions or company-specific concerns impacting investor valuation.

Rise and Peak (Dec 2022 - Jun 2024)

The P/E ratio increased significantly from December 2022 to June 2024, peaking at 35.95. This increase coincided with a rise in share price and suggests growing investor optimism regarding future earnings potential. The ratio moved from 25.69 to 35.95 over this period.

Recent Volatility (Jun 2024 - Dec 2025)

From June 2024 to December 2025, the P/E ratio demonstrated increased volatility, fluctuating between 31.52 and 35.67. The ratio ended at 35.67, indicating a potentially elevated valuation relative to historical levels, but also reflecting recent earnings growth. The most recent quarterly value shows a P/E of 35.67.

Overall, the P/E ratio demonstrates a dynamic relationship with both share price and earnings per share. The observed trends suggest periods of investor confidence, valuation adjustments, and responsiveness to earnings performance. The recent increase and subsequent volatility warrant continued monitoring to assess the sustainability of the current valuation.

The Price to Operating Profit (P/OP) ratio for the observed period demonstrates a generally stable pattern with fluctuations, ultimately trending upwards. Initially, the ratio decreased from 31.00 in December 2020 to a low of 20.74 in September 2022. Following this decline, the ratio experienced an increase, peaking at 30.03 in June 2025, with some volatility in the interim.

Initial Decline (Dec 2020 - Sep 2022)

From December 2020 through September 2022, the P/OP ratio exhibited a consistent downward trend. This suggests that the market valuation, relative to operating profitability, decreased over this period. The decline may be attributable to various factors, including shifts in investor sentiment, broader market conditions, or changes in the company’s growth expectations. The most significant decrease occurred between December 2020 and March 2021, followed by a more gradual decline through September 2022.

Subsequent Increase (Sep 2022 - Jun 2025)

Beginning in September 2022, the P/OP ratio began to rise, although not in a strictly linear fashion. There were increases to 24.31 in December 2022, 25.35 in March 2023, and a more substantial increase to 30.03 in June 2025. This upward movement indicates that the market began to place a higher valuation on each dollar of operating profit. This could be due to improved company performance, positive future outlook, or increased investor confidence.

Volatility and Recent Trends

The period between September 2022 and June 2025 was characterized by some volatility. The ratio experienced fluctuations, indicating periods of both increased and decreased investor optimism. The most recent data points show a peak in June 2025, suggesting a strong positive market reaction to the company’s operating performance at that time. The ratio decreased slightly to 27.00 in September 2025 and then increased again to 30.03 in June 2025.

Relationship to Underlying Components

The P/OP ratio is influenced by both the share price and the operating profit per share. While both components increased over the observed period, the relative changes between them drove the observed trends in the P/OP ratio. The initial decline in the ratio coincided with a period where operating profit per share increased at a faster rate than the share price. Conversely, the subsequent increase in the ratio was driven by a faster increase in the share price compared to operating profit per share.

Overall, the P/OP ratio suggests a dynamic valuation landscape. The initial decline followed by a subsequent increase indicates a shifting perception of the company’s value relative to its operating profitability. The recent volatility highlights the sensitivity of the ratio to market conditions and investor sentiment.

The price-to-sales (P/S) ratio exhibited fluctuating behavior over the analyzed period, spanning from December 2020 to December 2025. Initially, the ratio decreased from 7.82 to a low of 6.28, before generally increasing to reach a peak of 9.60, and subsequently declining to 8.74 by the end of the observation period.

Initial Decline (Dec 2020 - Sep 2022)

From December 2020 through September 2022, the P/S ratio demonstrated a general downward trend, decreasing from 7.82 to 6.28. This suggests that the market valuation relative to sales was decreasing during this period. There were minor fluctuations within this trend, but the overall direction was negative.

Subsequent Increase (Dec 2022 - Jun 2025)

Beginning in December 2022, the P/S ratio began to increase, reaching a high of 9.60 in September 2025. This indicates a growing market valuation relative to sales. The increase was not consistent, with some quarterly declines, but the overall trend was upward. The ratio peaked in September 2025 before decreasing to 8.74 in December 2025.

Recent Performance (Dec 2024 - Dec 2025)

The most recent six months show a decrease from 7.66 in December 2024 to 8.74 in December 2025. This suggests a recent moderation in the market’s willingness to pay for each dollar of sales.

Relationship to Sales per Share

Sales per share consistently increased throughout the period, rising from 17.52 to 29.67. The P/S ratio’s fluctuations, therefore, are not directly attributable to changes in sales per share, but rather to changes in the share price. The share price and P/S ratio generally moved in the same direction, with the P/S ratio being a function of both share price and sales per share.

Overall, the P/S ratio demonstrates a dynamic relationship with market conditions and investor sentiment. The observed fluctuations suggest that the market’s valuation of the company’s sales has varied over time, influenced by factors beyond the company’s sales performance itself.

The price-to-book value (P/BV) ratio exhibits considerable fluctuation over the observed period, spanning from December 2020 to December 2025. Initially, the ratio demonstrates a moderate decline from 34.75 to 32.20, followed by an increase to 38.96 by September 2021. A relatively stable period follows, with the ratio fluctuating between approximately 37.86 and 44.95 through the first three quarters of 2022. A notable surge is then observed, peaking at 59.17 in June 2024, before experiencing a decline and subsequent recovery to 54.18 by the end of the observation period.

Overall Trend

The P/BV ratio generally trends upward over the five-year period, despite several intermediate declines. The initial value of 34.75 rises to 54.18, indicating an increasing premium investors are willing to pay for each dollar of net asset value. However, the volatility suggests sensitivity to market conditions and company-specific factors.

Volatility and Peaks

Significant volatility is apparent, particularly between June 2022 and December 2024. The highest ratio recorded is 59.17 in June 2024, representing a substantial increase from the preceding periods. This peak may be attributable to positive market sentiment, strong earnings reports, or other favorable developments. A subsequent decline to 45.92 in March 2025 suggests a correction or shift in investor expectations.

Relationship to Book Value per Share

The P/BV ratio’s fluctuations are influenced by both share price and book value per share (BVPS) movements. While share price generally increased over the period, BVPS also exhibited variability. The largest P/BV increases coincide with periods where share price increases outpace BVPS growth, and vice versa. For example, the peak in June 2024 corresponds with a high share price and a relatively stable BVPS.

Recent Performance

In the most recent quarters, the P/BV ratio demonstrates a degree of stabilization, moving from 43.20 in September 2025 to 54.18 in December 2025. This suggests a potential consolidation of valuation after the earlier period of rapid increase. The increase from September to December 2025 could indicate renewed investor confidence.