Apple (NASDAQ:AAPL) stock has retreated by over 6% from its highest point this year.

It has also formed the risky bearish flag pattern, pointing to more downside, as it plans to hike iPhone prices.

Has Apple Stock Become Overvalued?

Apple, the third-biggest company in the world, may have become highly overvalued, jumping by over 50% in the last 12 months.

Data shows that the company’s forward price-to-earnings ratio has jumped to 34, much higher than the five-year average 28.