Damodaran: Apple, Inc. A Mature Business, Fully Priced

Back in 2011, Aswath Damodaran, who is Professor or Finance at the Stern School of Business NYU and a globally renowned valuation expert, commenced an intrinsic valuation of Apple Inc. (NASDAQ:AAPL). His valuation thesis moved in step with the company’s quarterly earnings reports, but reflected his central view (his ‘narrative’) that Apple Inc. (NASDAQ:AAPL) was positioned, in terms of a company life cycle, as a mature business. It therefore suffered from the twin weaknesses of a plateauing growth curve (revenues growing less than 5%) as well as shrinking margins due to increased competition. Price versus value Except for a period…