Apple (AAPL +0.04%) has been off to a poor start to 2026 as its shares are down 7% thus far. But that’s not a big drop off for one of the most valuable companies in the world. Its market cap remains fairly high at around $3.7 trillion. The company’s robust business model, strong brand, and devoted user base have made the stock a hot buy for years.

Today, it’s trading at 32 times its trailing earnings, which may be a bit rich for a company that normally doesn’t generate double-digit growth. Are you better off waiting for more of a dip in its share price before buying Apple stock, or is it still worth adding it to your portfolio today?

The stock is priced at a high premium

Apple’s valuation has been elevated for multiple years. And not only is it high when compared to the average S&P 500 stock, which trades at 24 times its trailing earnings, but also compared to what investors have normally paid for Apple’s stock in the past. Over the past decade, it has averaged a price-to-earnings multiple of 25.

AAPL PE Ratio data by YCharts

The stock experienced a boom amid the early stages of the pandemic back in 2020 when investors were bullish on many growth stocks and speculative investments, and it has largely remained at elevated levels since then. This is even as the company’s artificial intelligence (AI) strategy has come under fire, as Apple has been slow to roll out iPhones with cutting-edge AI capabilities. Its Siri assistant will likely get an upgrade this year, but whether that will lead to a surge in revenue is by no means a certainty.

Today’s Change

(0.04%) $0.10

Current Price

$251.59

Apple’s stock still looks too expensive to buy

When Apple last reported earnings in January, it delivered a surprise to investors, as its top line rose by 16% due to strong iPhone demand, with CEO Tim Cook admitting that the quarter even eclipsed management’s expectations. However, that’s not a typical performance for Apple, whose growth rate is typically in the single digits. And unless it can prove otherwise, and that AI will be a huge growth catalyst for the business, I’d wait for a pullback before considering the stock.

Apple may be a quality business, but that doesn’t mean its stock is a buy at any price. Its inflated valuation could make it difficult for investors who buy today to earn a good return. There are better-priced growth stocks out there to choose from than Apple, which is why, at its current valuation, I’d pass on the stock.