Apple is overvalued by about 40% given its stable 9% growth and current PEG of 3.7; the market has already priced in hopes for AI and new products.

Now, why does 34% on gross margin matter for the full year? Well, because that's really similar to Apple, which is kind of exciting because, you know, Apple's a pretty high margin business.

We know their stuff isn't exactly the cheap for a pretty penny. But if you go to any Apple financial statements, you'll see that their products also sell for about a 37% gross margin.

Now, the thing that's different about Apple that gives Apple a big premium is they sell services at about a 70 to 75% gross margin that Bloom Energy doesn't. So, the Apple products that are selling for about 37% margin, so you know, you sell $100 worth of stuff, $37 goes into the business that they can then spend on research and G&A or advertising or whatever.

Then they pay taxes on it, then they get their net, right? They got $37 $37 out of a hundred left. That is great because it doesn't just give you the $37. It leads more people to sign up for subscriptions to iCloud or, you know, whatever the the life software that they have for music or the subscriptions for any of their other products.

Or just included. That's a big W for Apple because it's really high margin.

See, Apple's growth isn't that high, but it's stable. Apple's growth is like 9% stable. And that means they're trading for about a 3.7 PEG right now. In my opinion, Apple's actually about 40% overvalued right now because I like to combine, you know, a 35 PE ratio divided by the growth and go I don't want to pay that much for that growth.

Now, there's hope that the CEO is going to help transition the company to more products and more AI revenues, but a lot of that hope is already priced in, all right?

So, Apple is very interesting because I calculated before I looked before I looked at the stock AI tab, I calculated um how much do I think Apple is worth? And I run their PEG at what I think a reasonable PEG is, like a 2422, somewhere in there.

And I think Apple is overvalued to the tune of 40% was the estimate I came up with. My stock AI tool, and makeevin.com, shows me at a 45% downside for Apple. So, not really excited here just because so much hope is priced in.

Maybe that growth rate will skyrocket, though. And if the growth rate for Apple skyrockets on new products and foldable phone, then you could justify a higher fair value, a higher terminal fair value for this company.

But, we're really relying on growth and we're already we're not getting Apple for a discount to justify uh you know, hedging against that growth right now.