AAPL
In general PBV ratio indicates whether a stock is undervalued or overvalued according to the following rule:
A stock is overvalued if the company is traded at high PBV (Higher than the sector Average) and has a low growth rate and high risk. On the other hand a stock it seems to be undervalued if it is traded at low PBV ratio (Lower than the sector Average) and has high expected growth rate and low risk.
The point is that AAPL before Covid 19 was traded at an average PBV ratio around 15x. Obviously AAPL before Covid19- was a less riskier stock and the expected growth rate was higher. But if you check the chart you will see that AAPL today is traded on PBV of 17.44x which is higher, than before. So AAPL is traded at a higher PBV and also has a lower expected growth rate and higher RISK . In other words AAPL stock is more expensive than before in terms of PBV. However this PBV ratio cannot be justified by lower risk and higher expected growth.
SUMMING UP!
- PVB before Covid-19 = 15x (on average) < PBV during Covid-19 = 17.44
- Risk before Covid-19 < Risk during Covid
- expected growth rate before Covid-19 > expected growth rate during Covid
Technicals: AAPL has retraced the downtrend around 100% according to Fibonacci,
and RSI is around 64.(Overbought)