Apple Inc. (NASDAQ:AAPL)

The valuation ratios from December 2020 through June 2026 exhibit a cyclical trend characterized by a period of contraction followed by a significant expansion in market premiums. A general decline in valuation multiples is evident from late 2020 until September 2022, after which a consistent upward trajectory is observed across most metrics, peaking in late 2024 and early 2026.

Price to Earnings (P/E) Ratio

The P/E ratio began at 36.00 and experienced a gradual decline to a low of 24.82 by September 2022. Following this trough, the ratio entered a recovery phase, climbing to a peak of 36.87 in December 2024. While some volatility occurred in early 2025, the ratio remained elevated, concluding the period at 34.97 in June 2026.

Price to Operating Profit (P/OP) Ratio

The P/OP ratio mirrored the trajectory of the P/E ratio, starting at 31.00 and descending to 20.74 in September 2022. A subsequent expansion brought the ratio back up to 28.21 by December 2024. The period ended with a ratio of 29.11, indicating that the market premium relative to operating performance remained higher than the 2022 lows but below the 2020 starting point.

Price to Sales (P/S) Ratio

The P/S ratio showed a moderate decline from 7.82 in December 2020 to 6.28 in September 2022. From that point, a sustained increase is observed, with the ratio reaching its highest level of 9.66 by June 2026. This suggests a growing market valuation relative to the revenue generated over the latter half of the analyzed period.

Price to Book Value (P/BV) Ratio

The P/BV ratio demonstrated the highest degree of volatility among the analyzed metrics. After starting at 34.75, it rose significantly to reach a peak of 59.17 in September 2024. This was followed by a sharp correction to 45.92 in March 2025 and another spike to 54.18 in September 2025, before stabilizing at 41.93 by June 2026.

Overall, the data indicates a synchronized movement between earnings and operating profit multiples, while the sales and book value ratios shifted toward higher premiums over the long term. The most pronounced period of valuation compression ended in late 2022, leading to a multi-year expansion in the multiples the market was willing to pay for the company's fundamentals.

An analysis of the valuation metrics from December 2020 through June 2026 reveals a cyclical pattern in market valuation multiples paired with a consistent upward trajectory in fundamental earnings performance.

Earnings Per Share (EPS) Growth

A sustained increase in earnings per share is observed, rising from 3.81 US$ in December 2020 to 8.83 US$ by June 2026. This growth represents a steady expansion of profitability over the analyzed period, with the most significant acceleration occurring between September 2025 and June 2026, where EPS climbed from 7.58 US$ to 8.83 US$.

Share Price Volatility and Appreciation

The share price exhibits a general upward trend, starting at 137.09 US$ and peaking at 308.91 US$ in June 2026. While the overall trajectory is positive, periodic fluctuations are evident, particularly between March 2022 and December 2022, where the price remained relatively stagnant between 154.50 US$ and 162.51 US$, followed by a sharp appreciation starting in early 2024.

Price-to-Earnings (P/E) Ratio Dynamics

The P/E ratio experienced three distinct phases. First, a period of contraction occurred between December 2020 and September 2022, with the ratio falling from 36.00 to a low of 24.82. Second, a phase of stabilization followed from December 2022 to March 2024, with the ratio fluctuating between 25.69 and 31.52. Third, a valuation expansion is noted from June 2024 onward, with the ratio peaking at 36.87 in December 2024 and remaining elevated above 30.00 through June 2026.

The divergence between earnings growth and share price appreciation is most evident in the final phase of the analysis. While EPS grew consistently, the expansion of the P/E ratio suggests an increase in market optimism or a higher premium attributed to future growth expectations, resulting in a share price that increased more rapidly than the underlying earnings growth during the 2024-2026 period.

The analysis of the valuation metrics reveals a consistent growth trajectory in operating efficiency contrasted with fluctuating market valuation multiples. While operating profit per share demonstrates a steady and linear increase, the Price to Operating Profit (P/OP) ratio exhibits cyclical volatility, indicating shifts in investor sentiment and pricing expectations relative to actual earnings power.

Operating Profit Performance

Operating profit per share has maintained a continuous upward trend throughout the period, rising from 4.42 US$ in December 2020 to 10.61 US$ by June 2026. This represents a sustained increase in operational profitability, characterized by minimal volatility and a consistent quarterly growth pattern.

P/OP Ratio Compression Phase

A significant contraction in the P/OP ratio is observed between December 2020 and September 2022. During this interval, the ratio declined from a peak of 31.00 to a low of 20.74. This compression occurred despite an increase in share price, suggesting that operating profit growth outpaced the growth in market capitalization during this window.

Valuation Stabilization and Recovery

From December 2022 through March 2024, the P/OP ratio entered a period of relative stabilization, generally fluctuating between 23.00 and 25.00. This phase indicates a period where share price movements were closely aligned with the growth in operating profits.

Recent Valuation Expansion

A renewed upward trend in the valuation multiple emerged starting in June 2024. The P/OP ratio climbed from 27.72 in June 2024 to a closing value of 29.11 in June 2026. This expansion suggests that the market began assigning a higher premium to each unit of operating profit, with share price appreciation accelerating faster than the growth of the underlying operating profits.

In summary, the divergence between the linear growth of operating profits and the non-linear movement of the share price has resulted in a P/OP ratio that shifted from a high initial valuation, through a period of correction and stabilization, and finally toward a renewed state of expansion.

The analyzed period reflects a sustained expansion in valuation multiples coinciding with consistent growth in revenue efficiency per share.

Revenue Per Share Growth

Sales per share exhibited a continuous upward trajectory, increasing from 17.52 USD in December 2020 to 31.99 USD by June 2026. This steady climb indicates a robust and persistent growth in the company's ability to generate top-line revenue on a per-share basis over the duration of the observation period.

Share Price Dynamics

The share price experienced significant appreciation, rising from 137.09 USD to 308.91 USD. While the price showed volatility between 2021 and 2022, a stronger growth phase began in 2023, leading to a peak valuation above 300 USD by mid-2026.

Price-to-Sales (P/S) Ratio Evolution

The P/S ratio progressed through three distinct valuation phases. From December 2020 to December 2022, the ratio remained relatively stable and compressed, fluctuating between a high of 7.82 and a low of 6.28. In 2023, a valuation shift occurred as the ratio moved into a higher baseline, ranging between 7.09 and 7.44. From June 2024 through June 2026, the multiple expanded further, consistently exceeding 8.60 and reaching a peak of 9.66. This expansion suggests a market re-rating, where a higher premium is being attributed to each dollar of sales, reflecting increased investor confidence or higher future growth expectations.

The analysis of common stock valuation ratios reveals a period of significant expansion in the Price to Book Value (P/BV) multiple, characterized by high volatility and a substantial decoupling of market price from accounting book value. The P/BV ratio exhibits a general upward trajectory from late 2020 through late 2024, before experiencing a moderation in the final period.

Share Price Appreciation

A sustained long-term increase in share price is evident, rising from 137.09 US$ in December 2020 to a peak of 308.91 US$ by June 2026. While there were intermittent corrections, such as the dip to 202.38 US$ in June 2025, the overall trend reflects strong market valuation growth.

Book Value Per Share (BVPS) Fluctuations

The book value per share remained relatively compressed for the majority of the observed period, reaching a low of 3.19 US$ in September 2022. A notable shift occurred starting in late 2025, where BVPS entered a period of rapid growth, climbing from 4.99 US$ in September 2025 to 7.37 US$ by June 2026.

P/BV Ratio Analysis

The P/BV ratio shows a wide range of valuation, starting at 34.75 and reaching a maximum peak of 59.17 in September 2024. This peak was driven by the convergence of rising share prices and a simultaneous decline in book value per share. The ratio reflects a market premium that significantly exceeds the net asset value of the company.

Valuation Normalization Trend

Despite the share price reaching its highest levels in 2026, the P/BV ratio declined from its peak, ending at 41.93 in June 2026. This compression is attributed to the substantial increase in BVPS during the 2025-2026 period, which acted as a counterbalance to the rising share price, thereby lowering the valuation multiple.