Apple Inc. designs, manufactures, and markets mobile communication and media devices, and personal computers to consumers, and small and mid-sized businesses; and education, enterprise, and government customers worldwide. The last earnings update was 53 days ago. More info.
The calculations below outline how an intrinsic value for
is arrived at by discounting future cash flows to their present value. We use
analyst's estimates of cash flows going forward 5 years.
See our documentation to learn about this calculation.
|Levered FCF (USD, Millions)||$62,756.36||$63,450.88||$67,230.86||$68,000.67||$69,622.67|
|Source||Analyst x18||Analyst x18||Analyst x7||Analyst x3||Analyst x3|
Discounted (@ 10.51%)
Present value of next 5 years cash flows:
Terminal Value = FCF2022 × (1 + g) ÷ (Discount Rate – g)
Terminal Value = $69,623 × (1 + 2.47%) ÷ (10.51% – 2.47%)
Terminal value based on the Perpetuity Method where growth (g) =
Present value of terminal value:
Equity Value (Total value) = Present value of next 5 years cash flows +
$784,536 = $246,380 + $538,156
Value = Total value / Shares Outstanding ($784,536 / 4,915)Discount to Share Price
Value per share (USD): $159.62
Current discount (share price of $187.16): -17.26%
The discount rate, or required rate of return, is estimated by calculating the Cost of Equity.
Discount rate = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
Discount rate = 10.51% = 2.47% + (1.068 * 7.53%)
The Levered Beta is the Unlevered Beta adjusted for financial leverage. It is limited to 0.8 to 2.0 (practical range for a stable firm). Note the market value of equity is used not the book value ($922,227,342,940).
Levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
1.068 = 0.946 (1 + (1- 2.7%) (13.21%))
Levered Beta used in calculation = 1.068
Mr. Timothy D. Cook, also known as Tim, has been Chief Executive Officer of Apple Inc. (“Apple”) since August 2011 and its Director since 2011. Mr. Cook served as Chief Operating Officer at Apple Inc. since October 2005. He also headed Apple's Macintosh division and played a key role in the continued development of strategic reseller and supplier relationships, ensuring flexibility in response to an increasingly demanding marketplace. Mr. Cook joined Apple in March 1998 and served as Executive Vice President, Worldwide Sales and Operations from 2002 to 2005. From 2000 to 2002, Mr. Cook served as Senior Vice President, Worldwide Operations, Sales, Service and Support. From 1998 to 2000, Mr. Cook served as Senior Vice President, Worldwide Operations. Prior to joining Apple, he was Vice President of Corporate Materials for Compaq. Previous to his work at Compaq, he was the Chief Operating Officer of the Reseller Division at Intelligent Electronics. Mr. Cook has Board extensive executive leadership experience in the technology industry, including the management of worldwide operations, sales, service, and support. He serves as Director at NIKE, Inc. He served on the boards of The National Football Foundation & College Hall of Fame, Inc. and Robert F. Kennedy Center for Justice and Human Rights. He served on the Board of Trustees at Duke University. He also spent 12 years with IBM, most recently as Director of North American Fulfillment where he led manufacturing and distribution functions for IBM's Personal Computer Company in North and Latin America. He earned an M.B.A. from Duke University, where he was a Fuqua Scholar, and a Bachelor of Science degree in Industrial Engineering from Auburn University.
Average tenure and age of the Apple management team in years:
Average tenure and age of the Apple board of directors in years:
See our latest analysis for Apple Did AAPL beat its long-term earnings growth trend and its industry? … Let's see whether it is merely a result of an industry uplift, or if Apple has seen some company-specific growth. … This means any uplift the industry is benefiting from, Apple is able to amplify this to its advantage.What does this mean?Simply Wall St - – Full article
View our latest analysis for Apple 5 questions I ask before picking a dividend stock When assessing a stock as a potential addition to my dividend Portfolio, I look at these five areas: Is it the top 25% annual dividend yield payer? … If dividend is a key criteria in your investment consideration, then you need to make sure the dividend stock you're eyeing out is reliable in its payments. … But if you are not exclusively a dividend investor, the stock could still be an interesting investment opportunity.Simply Wall St - – Full article
Check out our latest analysis for Apple 5 checks you should do on a dividend stock If you are a dividend investor, you should always assess these five key metrics: Is its annual yield among the top 25% of dividend-paying companies? … However, going forward, analysts expect AAPL's payout to fall to 21.85% of its earnings, which leads to a dividend yield of 1.81%. … Given that this is purely a dividend analysis, you should always research extensively before deciding whether or not a stock is an appropriate investment for you.Simply Wall St - – Full article
I am going to run you through how I calculated the intrinsic value of Apple Inc (NASDAQ:AAPL) by projecting its future cash flows and then discounting them to today's value. … 5-year cash flow estimate 2018 2019 2020 2021 2022 Levered FCF ($, Millions) $59,705.57 $64,268.07 $68,250.33 $63,246.00 $62,310.67 Source Analyst x19 Analyst x15 Analyst x6 Analyst x3 Analyst x3 Present Value Discounted @ 10.76% $53,903.54 $52,384.17 $50,224.08 $42,018.71 $37,374.42 Present Value of 5-year Cash Flow (PVCF)= $235,905 The second stage is also known as Terminal Value, this is the business's cash flow after the first stage. … Terminal Value (TV) = FCF2022 × (1 + g) ÷ (r – g) = $62,311 × (1 + 2.5%) ÷ (10.8% – 2.5%) = $769,855 Present Value of Terminal Value (PVTV) = TV / (1 + r)5 = $769,855 / ( 1 + 10.8%)5 = $461,765 The total value, or equity value, is then the sum of the present value of the cash flows, which in this case is $697,670.Simply Wall St - – Full article
Margin Calculation for AAPL Profit Margin = Net Income ÷ Revenue ∴ Profit Margin = 50.53 Billion ÷ 239.18 Billion = 21.12% There has been a contraction in Apple's margin over the past five years, with 10.08% in average revenue growth exceeding 7.15% in average net income growth, indicating that that a smaller percentage of revenue is being converted in to net income despite the top line growth. … Using Apple's margin expectations as a way to understand projections for the future Forward looking projections suggest margins will reverse its previous trend and start to expand, with annual revenue growth tipped at 4.08% and a forecasted 6.11% in annual net income growth. … This suggests future earnings growth is driven further by enhanced cost efficiency alongside revenue increases, which is enlarging the incremental amount of net income that is retained from the forecasted revenue growth.Simply Wall St - – Full article
With this increase in debt, the current cash and short-term investment levels stands at US$74.40B , ready to deploy into the business. … Additionally, AAPL has generated cash from operations of US$63.60B during the same period of time, resulting in an operating cash to total debt ratio of 54.98%, signalling that AAPL’s operating cash is sufficient to cover its debt. … Next Steps: AAPL’s high cash coverage means that, although its debt levels are high, the company is able to utilise its borrowings efficiently in order to generate cash flow.Simply Wall St - – Full article
Earnings is a powerful indication of AAPL's ability to invest shareholders' funds and generate returns. … NasdaqGS:AAPL Past Future Earnings Mar 22nd 18 Is AAPL's CEO overpaid relative to the market? … Taking into account AAPL's size and performance, in terms of market cap and earnings, it seems that Cook is paid on a similar level to other comparable US CEOs of profitable large-caps.Simply Wall St - – Full article
Today, I will be analyzing Apple Inc’s (NASDAQ:AAPL) recent ownership structure, an important but not-so-popular subject among individual investors. … Check out our latest analysis for Apple NasdaqGS:AAPL Ownership_summary Mar 13th 18 Institutional Ownership With an institutional ownership of 59.45%, AAPL can face volatile stock price movements if institutions execute block trades on the open market, more so, when there are relatively small amounts of shares available on the market to trade However, as not all institutions are alike, such high volatility events, especially in the short-term, have been more frequently linked to active market participants like hedge funds. … Private Company Ownership Another important group of owners for potential investors in AAPL are private companies that hold a stake of 0.000099% in AAPL.Simply Wall St - – Full article
According to my valuation model, Apple seems to be fairly priced at around 19% above my intrinsic value, which means if you buy Apple today, you’d be paying a relatively fair price for it. … Although value investors would argue that it’s the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. … AAPL’s optimistic future growth appears to have been factored into the current share price, with shares trading around its fair value.Simply Wall St - – Full article
Return on Equity = Net Profit ÷ Shareholders Equity ROE is assessed against cost of equity, which is measured using the Capital Asset Pricing Model (CAPM) – but let’s not dive into the details of that today. … ROE can be broken down into three different ratios: net profit margin, asset turnover, and financial leverage. … This is called the Dupont Formula: Dupont Formula ROE = profit margin × asset turnover × financial leverage ROE = (annual net profit ÷ sales) × (sales ÷ assets) × (assets ÷ shareholders’ equity) ROE = annual net profit ÷ shareholders’ equity NasdaqGS:AAPL Last Perf Feb 27th 18 Basically, profit margin measures how much of revenue trickles down into earnings which illustrates how efficient the business is with its cost management.Simply Wall St - – Full article
Apple Inc. designs, manufactures, and markets mobile communication and media devices, and personal computers to consumers, and small and mid-sized businesses; and education, enterprise, and government customers worldwide. The company also sells related software, services, accessories, networking solutions, and third-party digital content and applications. It offers iPhone, a line of smartphones; iPad, a line of multi-purpose tablets; and Mac, a line of desktop and portable personal computers, as well as operating systems comprising iOS, macOS, watchOS, and tvOS. The company also provides iWork, an integrated productivity suite that helps users create, present, and publish documents, presentations, and spreadsheets; and other application software, such as Final Cut Pro, Logic Pro X, and FileMaker Pro. In addition, it offers Apple TV that connects to consumers’ TV and enables them to access digital content directly for streaming high definition video, playing music and games, and viewing photos; Apple Watch, a personal electronic device; and iPod touch, a flash memory-based digital music and media player. Further, the company sells Apple-branded and third-party accessories, such as headphones, displays, storage devices, Beats products, and other connectivity and computing products and supplies. Additionally, it offers iCloud, a cloud service that stores music, photos, contacts, calendars, mail, documents, and others; AppleCare, which offers support options for its customers; and Apple Pay, a cashless payment service. The company sells and delivers digital content and applications through the iTunes Store, App Store, Mac App Store, TV App Store, iBooks Store, and Apple Music. It also sells its products through its retail and online stores, and direct sales force, as well as through third-party cellular network carriers, wholesalers, retailers, and value-added resellers. Apple Inc. was founded in 1977 and is headquartered in Cupertino, California.
1 Infinite Loop,
|Exchange Symbol||Ticker Symbol||Security||Exchange||Country||Currency||Listed on|
|NasdaqGS||AAPL||Common Stock||Nasdaq Global Select||US||USD||12. Dec 1980|
|DB||APC||Common Stock||Deutsche Boerse AG||DE||EUR||12. Dec 1980|
|XTRA||APC||Common Stock||XETRA Trading Platform||DE||EUR||12. Dec 1980|
|LSE||0R2V||Common Stock||London Stock Exchange||GB||USD||12. Dec 1980|
|SWX||AAPL||Common Stock||SIX Swiss Exchange||CH||CHF||12. Dec 1980|
|WBAG||AAPL||Common Stock||Wiener Boerse AG||AT||EUR||12. Dec 1980|
|SNSE||AAPL||Common Stock||Santiago Stock Exchange||CL||USD||12. Dec 1980|
|BVC||AAPL||Common Stock||Bolsa de Valores de Colombia||CO||COP||12. Dec 1980|
|BMV||AAPL *||Common Stock||Bolsa Mexicana de Valores||MX||MXN||12. Dec 1980|
|BVL||AAPL||Common Stock||Bolsa de Valores de Lima||PE||USD||12. Dec 1980|
|BOVESPA||AAPL34||BDR REPR 1/10 COM NPV||Bolsa de Valores de Sao Paulo||BR||BRL||06. May 2011|
|BASE||AAPL||CEDEAR(REPR 1/10 SHR) (ARS)||Buenos Aires Stock Exchange||AR||ARS||28. Aug 2012|
|Technology Hardware, Storage and Peripherals|
|Area||Date (UTC time)|
|Company Analysis updated:||2018/05/23 04:08|
|End of day share price update:||2018/05/22 00:00|
|Last estimates confirmation:||2018/05/21|
|Last earnings update:||2018/03/31|
|Last annual earnings update:||2017/09/30|
All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.