Apple Inc. (NASDAQ:AAPL)

An overall upward trajectory in valuation multiples is observed across the analyzed period, indicating a general expansion in the market premium attributed to the company. While the period from late 2021 through 2022 was characterized by relative stability or slight contraction, a sustained increase in valuation ratios began in 2023 and accelerated through 2026.

Price to Earnings (P/E) Ratio

The P/E ratio exhibited a gradual climb from a low of 24.82 in September 2022 to a peak of 36.87 in December 2024. Although a temporary correction occurred in the first half of 2025, where the ratio dipped to 30.25, the trend resumed an upward path, ending at 36.49 in September 2026. This suggests a growing investor willingness to pay a higher premium for each dollar of net income.

Price to Operating Profit (P/OP) Ratio

Similar to the P/E trend, the P/OP ratio reached its lowest point of 20.74 in September 2022 before entering a long-term growth phase. The ratio experienced a notable increase starting in June 2024, rising from 27.72 to a terminal value of 30.51 by September 2026. The correlation between P/E and P/OP movements indicates that valuation growth is consistent across both net and operating profitability metrics.

Price to Sales (P/S) Ratio

The P/S ratio demonstrated a significant expansion, starting at 7.35 in December 2021 and reaching a peak of 10.07 by September 2026. A distinct shift occurred after March 2024, where the ratio moved consistently above 8.00. This trend reflects a substantial increase in the market valuation relative to top-line revenue growth, suggesting improved perceived quality of earnings or higher future growth expectations.

Price to Book Value (P/BV) Ratio

The P/BV ratio displayed the highest level of volatility among all metrics. After fluctuating between 37.00 and 48.00 through 2022, it spiked to a maximum of 59.17 in September 2024. Following this peak, a sharp correction occurred, with the ratio returning to 38.64 by March 2026 before stabilizing at 43.03 in September 2026. This volatility may indicate significant shifts in equity bases or aggressive changes in market sentiment regarding the company's asset value.

The convergence of rising P/E, P/OP, and P/S ratios toward the end of the period indicates a comprehensive valuation rerating. The market has transitioned from a more conservative valuation regime in 2022 to a highly premium regime by 2026, despite the intermittent volatility observed in the book value multiple.

The valuation metrics exhibit a clear upward trajectory in the price-to-earnings (P/E) ratio over the observed period, reflecting a significant expansion in the multiple investors are willing to pay per dollar of earnings.

Initial Valuation Stability (Dec 2021 – Dec 2022)

During the initial phase, the P/E ratio remained relatively constrained, fluctuating between a low of 24.82 in September 2022 and a high of 27.64 in December 2021. This period was characterized by moderate share price volatility while earnings per share (EPS) remained stable, generally oscillating between 6.02 and 6.30.

Valuation Expansion Phase (Apr 2023 – Sep 2024)

A transition toward higher valuation multiples occurred starting in early 2023, with the P/E ratio consistently maintaining levels above 28.00. A sharp acceleration is observed between June 2024 and September 2024, where the ratio climbed from 32.79 to a period peak of 36.87. This indicates that share price appreciation significantly outpaced the growth of EPS during this interval.

Correction and Sustained Growth (Dec 2024 – Sep 2026)

Following the late 2024 peak, a temporary correction occurred, with the P/E ratio retreating to 30.25 by June 2025. However, a secondary and more sustained upward trend followed, culminating in a ratio of 36.49 by September 2026. This latter expansion in the multiple coincided with a substantial increase in fundamental earnings, as EPS grew from 6.40 in late 2024 to 9.10 by the end of the analyzed period, suggesting that the higher valuation is supported by stronger bottom-line growth.

The valuation of the entity, measured by the Price to Operating Profit (P/OP) ratio, exhibits a general upward trajectory over the analyzed period from December 2021 to September 2026. While the ratio experienced periods of stabilization and moderate fluctuation, the overall trend indicates an expansion in the multiple the market is willing to pay relative to operating earnings.

Share Price Evolution

The share price demonstrated a progression from 170.33 in December 2021 to a peak of 331.90 by September 2026. A period of relative volatility is noted throughout 2022, with prices fluctuating between 154.50 and 162.51. A sustained growth phase began in 2023, accelerating significantly from June 2024 onward, characterized by a series of higher highs.

Operating Profit per Share Trends

Operating profit per share maintained a consistent and steady growth pattern. Starting at 7.16 in December 2021, the figure rose incrementally to 10.88 by September 2026. This growth was linear and stable, showing resilience regardless of the more volatile swings observed in the share price.

P/OP Ratio Analysis

The P/OP ratio fluctuated between a low of 20.74 in September 2022 and a high of 30.51 in September 2026. Three distinct phases are observable: a stabilization phase between 20.74 and 24.31 from December 2021 to March 2024; a transition phase starting in June 2024 where the ratio climbed into the 27.00 to 28.21 range; and a valuation expansion phase from September 2025 to September 2026, where the ratio peaked above 30.00.

Valuation Dynamics

The divergence between the steady growth of operating profits and the more aggressive appreciation of the share price led to an overall increase in the P/OP multiple. The expansion of the ratio, particularly in the final year of the sequence, suggests that market sentiment shifted toward a higher valuation premium, as the price increase significantly outpaced the growth in operating efficiency.

An analysis of the price-to-sales (P/S) ratio reveals a period of valuation volatility followed by a sustained upward expansion. Between December 2021 and September 2026, the P/S ratio evolved from 7.35 to a peak of 10.07, indicating a substantial increase in the market premium attributed to the company's revenue generation.

Share Price Volatility and Valuation Impact

The share price experienced a notable contraction throughout 2022, reaching a low of 154.50 in December of that year, which coincided with a P/S ratio decline to 6.31. Beginning in 2024, a significant acceleration in share price occurred, culminating in a peak of 331.90 by September 2026. This equity appreciation occurred at a faster rate than the growth in sales per share, thereby driving the P/S ratio to higher levels.

Revenue Performance per Share

Sales per share demonstrated a consistent and linear growth trajectory across the analyzed period. Starting at 23.18 in December 2021, the figure rose steadily to 32.95 by September 2026. This steady increase suggests stable operational growth, serving as a constant baseline against which the more volatile share price fluctuations are measured.

P/S Ratio Trajectory and Phase Analysis

The P/S ratio is characterized by three distinct phases. First, a contraction phase occurred in 2022, with the ratio descending to a minimum of 6.28. Second, a stabilization phase was observed during 2023, where the ratio fluctuated between 7.09 and 7.44. Third, an expansionary phase began in mid-2024, where the ratio broke the 8.0 threshold and continued a general upward trend to conclude at 10.07. This final phase indicates that the market increasingly valued each dollar of sales at a higher premium toward the end of the period.

The valuation analysis of the common stock indicates a period of significant volatility and overall expansion in market price, accompanied by a fluctuating relationship between market value and book value from December 2021 through September 2026.

Share Price Trajectory

The share price exhibited a cyclical pattern, initially declining from $170.33 in December 2021 to a low of $154.50 in December 2022. A recovery phase followed, leading to a sharp escalation in 2024, peaking at $236.00 in December of that year. After a correction in early 2025, the price entered a sustained upward trend, reaching a period high of $331.90 by September 2026.

Book Value per Share (BVPS) Evolution

BVPS experienced an initial contraction, dropping from $4.41 in December 2021 to $3.19 by September 2022. Following this trough, the value fluctuated between $3.59 and $4.84 through March 2024 before another dip to $3.77 in September 2024. A significant and consistent growth phase emerged starting in December 2025, with the value climbing steadily to $7.71 by September 2026, representing a substantial increase in the underlying accounting value per share.

Price to Book Value (P/BV) Ratio Dynamics

The P/BV ratio remained consistently high throughout the period, signifying a substantial market premium over the book value. The ratio reached its maximum peak of 59.17 in September 2024, a result of the share price increasing while the BVPS simultaneously declined. However, a trend toward valuation normalization is observed in the final year of the data; despite the share price continuing to rise in 2026, the P/BV ratio contracted from 54.18 in September 2025 to 43.03 in September 2026. This compression is attributed to the rapid growth in BVPS, which began to offset the increase in market price, thereby moderating the valuation multiple.