AppFolio Stock To $132?

AppFolio (APPF) stock has jumped 13% during the past week, and is currently trading at $188.40. Our multi-factor assessment suggests that it may be time to reduce exposure to APPF stock. We are primarily concerned current valuation and a price of $132 may not be out of reach. We believe there is not much to fear in APPF stock given its overall Strong operating performance and financial condition. But given its Very High valuation, the stock appears Relatively Expensive.

Below is our assessment:

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Let’s get into details of each of the assessed factors but before that, for quick background: With $6.8 Bil in market cap, AppFolio provides cloud-based property management solutions with automated workflows, user-friendly interfaces, and value-added services to streamline and optimize real estate business processes.

[1] Valuation Looks Very High

This table highlights how APPF is valued vs broader market. For more details see: APPF Valuation Ratios

[2] Growth Is Very Strong

• AppFolio has seen its top line grow at an average rate of 26.4% over the last 3 years
• Its revenues have grown 20% from $794 Mil to $951 Mil in the last 12 months
• Also, its quarterly revenues grew 21.9% to $248 Mil in the most recent quarter from $204 Mil a year ago.

This table highlights how APPF is growing vs broader market. For more details see: APPF Revenue Comparison

[3] Profitability Appears Moderate

• APPF last 12 month operating income was $153 Mil representing operating margin of 16.1%
• With cash flow margin of 25.5%, it generated nearly $242 Mil in operating cash flow over this period
• For the same period, APPF generated nearly $141 Mil in net income, suggesting net margin of about 14.8%

This table highlights how APPF profitability vs broader market. For more details see: APPF Operating Income Comparison

[4] Financial Stability Looks Very Strong

• APPF Debt was $38 Mil at the end of the most recent quarter, while its current Market Cap is $6.8 Bil. This implies Debt-to-Equity Ratio of 0.6%
• APPF Cash (including cash equivalents) makes up $251 Mil of $689 Mil in total Assets. This yields a Cash-to-Assets Ratio of 36.5%

[5] Downturn Resilience Is Moderate

APPF saw an impact slightly better than the S&P 500 index during various economic downturns. We assess this based on both (a) how much the stock fell and, (b) how quickly it recovered.

2022 Inflation Shock

• APPF stock fell 54.7% from a high of $181.50 on 12 February 2021 to $82.26 on 11 May 2022 vs. a peak-to-trough decline of 25.4% for the S&P 500.
• However, the stock fully recovered to its pre-Crisis peak by 12 July 2023
• Since then, the stock increased to a high of $321.25 on 4 August 2025 , and currently trades at $188.40

 
2020 Covid Pandemic

• APPF stock fell 41.3% from a high of $144.90 on 19 February 2020 to $84.99 on 16 March 2020 vs. a peak-to-trough decline of 33.9% for the S&P 500.
• However, the stock fully recovered to its pre-Crisis peak by 26 May 2020

But the risk is not limited to major market crashes. Stocks fall even when markets are good – think events like earnings, business updates, outlook changes. Read APPF Dip Buyer Analyses to see how the stock has recovered from sharp dips in the past.

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