Apple experienced a 14% share price increase year-to-date in 2025. For fiscal year 2027, ending in September, analysts project an earnings per share (EPS) of $9.10. The current forward Price-to-Earnings (P/E) ratio for Apple stands at 34.67, which is at a historical high, signaling an expensive valuation. The analyst anticipates a likely decline in Apple's forward P/E ratio over the next year. This bearish outlook on valuation is supported by several potential headwinds for 2026, including increasing tariffs on international trade, which are already demonstrating a negative impact on imports and unit sales. Furthermore, rising consumer prices for essentials such as food, rent, and transportation could strain consumer budgets, consequently reducing discretionary spending on Apple products. Although Apple has previously secured some tariff exemptions, their long-term sustainability is uncertain. Within various P/E scenarios, projected stock prices range from $318.50 at a P/E of 35, to $227.50 at a P/E of 25. Considering the current market price of $286.37, and the expectation of a declining P/E, the analyst forecasts a 2026 target price around $250.0. A price exceeding $320.0 would invalidate this bearish valuation analysis. Apple's comparatively smaller investments in artificial intelligence (AI) also represent a competitive disadvantage against other major tech firms.