AAPL is a great company but currently overvalued; I am not buying due to poor risk-reward at current price.

The three stocks currently on my watch list are Apple, CrowdStrike, and AbbVie. But I am not buying any of them at the moment. The reason has nothing to do with her business activities. It's all about its market valuations.

The first company illustrates all of this perfectly, as the first stock is Apple. I don't think I need to convince anyone that Apple is a great company. We are talking about one of the greatest companies ever created.

You're thinking about iPhones, Macs, Mac Minis, iPads, Apple Watches, AirPods, services, a huge user base, one of the most powerful brands in the world, and an ecosystem that's very difficult to leave. I love this business. My problem is the price.

Apple's stock has risen by about 25% this year, easily outperforming the rest of the "Great Seven" companies, which have seen more modest returns in 2026. But the "Edge" score is only 51, which is not great at all.

The biggest obstacle to this degree is evaluation. Looking at the valuation here, we can see that Apple shares are trading at a forward price-to-earnings ratio of 36.7 times, which is insane.

We are talking about a stock whose earnings are projected to grow by a single digit percentage next year. It is simply too expensive for this lack of growth.

Looking at it from another angle, let's look at the forward market value to earnings before interest, taxes, depreciation and amortization (EV to EBITDA) ratio, which is 28 times, much higher than the company's historical 5-year average of 22 times.

These two examples are not cases where we grow faster or slightly higher than those averages. We are far above those averages, and growth is simply not there.

These are situations where I am not interested in buying, because the risk-to-reward ratio is not entirely convincing. Actually, it's not interesting at all.

But going back to the "Stock Investor" website, we can see that the average 12-month target price for Apple is $342 from analysts, which is almost the same as the current stock trading price, offering no upside.

A great business, and an expensive stock, and I want you to think about what you would be willing to pay for this stock right now. Tell me in the comments below. For me, if Apple grows its profits by 30%, 40% or more, then I can justify paying this huge premium.

But Apple is a mature company with huge capital. It is indeed one of the largest companies on the planet. This does not mean that it cannot continue to grow. I think she can.

Services can grow, which could actually lead to wider margins. Artificial intelligence may create new update cycles. We have just seen the foldable phone. The ecosystem can become more valuable, but there is a big difference between saying that Apple can continue to grow, and saying that Apple is worth any price.

At around 35 or 36 times future earnings, I think we are required to pay a lot of money for future success. And remember what we just discussed, the risk-free rate of return is rising.

Therefore, the required rate of return on the stock should not decrease at the same time. This is the source of the tension.

So, I'm not saying Apple's stock will go down. At this current valuation, I would say I don't think the risk-reward ratio is compelling enough for me to add it to my portfolio. This is a completely different statement.

And please tell me again in the comments section, do you think Apple is overvalued or undervalued?

Apple is a technology company with a huge market capitalization.

When I look at these three companies, Apple, CrowdStrike and AbbVie, I love their work in its entirety, but I don't like their current ratings.

Apple has an amazing ecosystem , but it trades at a forward price-to-earnings ratio of 35 times. Well, the problem is that it's a mature company priced based on expectations of exceptional performance.

I love Apple. But I won't buy it now. Because there is a difference between wanting to own a business and being willing to pay any price for it. If the fluctuations give me the price I'm looking for, I'll be ready.

Knowing this, there are option strategies I can use to my advantage to generate more cash flow while waiting for these stocks to decline. However, tell me in the comments section which of these three stocks, if you could choose just one, you would like to own at a lower price?

Is it Apple, CrowdStrike, or AbbVie? And most importantly, what price are you expecting?