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. 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)||$60,545.40||$64,728.65||$68,250.33||$63,246.00||$62,310.67|
|Source||Analyst x17||Analyst x14||Analyst x6||Analyst x3||Analyst x3|
Discounted (@ 10.7%)
Present value of next 5 years cash flows:
Terminal Value = FCF2022 × (1 + g) ÷ (Discount Rate – g)
Terminal Value = $62,311 × (1 + 2.47%) ÷ (10.7% – 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 +
$704,093 = $237,421 + $466,672
Value = Total value / Shares Outstanding ($704,093 / 5,074)Discount to Share Price
Value per share:
Current discount (share price of $175.5): -26.47%
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 = 10.7% = 2.47% + (1.093 * 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 ($875,267,242,500).
Levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
1.093 = 1.008 (1 + (1- 40%) (13.98%))
Levered Beta used in calculation = 1.093
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:
When Apple Inc's (NASDAQ:AAPL) announced its latest earnings (30 December 2017), I wanted to understand how these figures stacked up against its past performance. … For the purpose of this commentary, I like to use data from the most recent 12 months, which annualizes the most recent half-year data, or in some cases, the latest annual report is already the most recent financial year data. … Given that these figures may be relatively short-term, I have determined an annualized five-year figure for AAPL's earnings, which stands at US$41.51B This shows that, generally, Apple has been able to steadily grow its profits over the past couple of years as well.Simply Wall St - – Full article
I'm talking about the well-proven, robust track record Apple Inc. … This consistent market outperformance illustrates a robust track record of delivering strong returns over a number of years, increasing my conviction in Apple as an investment over the long run. … The intrinsic value infographic in our free research report helps visualize whether AAPL is currently mispriced by the market?Simply Wall St - – Full article
View our latest analysis for Apple 5 questions I ask before picking a dividend stock When researching a dividend stock, I always follow the following screening criteria: Is its annual yield among the top 25% of dividend-paying companies? … NasdaqGS:AAPL Historical Dividend Yield Feb 5th 18 How well does Apple fit our criteria? … However, going forward, analysts expect AAPL's payout to fall to 20.94% of its earnings, which leads to a dividend yield of 1.79%.Simply Wall St - – Full article
Below is a brief commentary on my key takeaways on how market analysts predict Apple's earnings growth trajectory over the next few years and whether the future looks even brighter than the past. … See our latest analysis for Apple Market analysts' consensus outlook for next year seems positive, with earnings climbing by a robust 18.59%. … The slope of this line is the rate of earnings growth, which in this case is 7.44%.Simply Wall St - – Full article
Formula Price-Earnings Ratio = Price per share ÷ Earnings per share P/E Calculation for AAPL Price per share = $171.51 Earnings per share = $9.268 ∴ Price-Earnings Ratio = $171.51 ÷ $9.268 = 18.5x The P/E ratio itself doesn’t tell you a lot; however, it becomes very insightful when you compare it with other similar companies. … For example, if you inadvertently compared lower risk firms with AAPL, then investors would naturally value AAPL at a lower price since it is a riskier investment. … Similarly, if you accidentally compared higher growth firms with AAPL, investors would also value AAPL at a lower price since it is a lower growth investment.Simply Wall St - – Full article
Today, I will calculate the stock's intrinsic value by estimating the company's future cash flows and discounting them to their present value. … 5-year cash flow forecast 2018 2019 2020 2021 2022 Levered FCF ($, Millions) $61,854.97 $60,785.00 $63,805.50 $58,633.00 $61,583.50 Source Analyst x9 Analyst x10 Analyst x6 Analyst x2 Analyst x2 Present Value Discounted @ 10.37% $56,041.01 $49,895.25 $47,451.76 $39,506.42 $37,594.24 Present Value of 5-year Cash Flow (PVCF)= $230,489 After calculating the present value of future cash flows in the intial 5-year period we need to calculate the Terminal Value, which accounts for all the future cash flows beyond the first stage. … Terminal Value (TV) = FCF2022 × (1 + g) ÷ (r – g) = $61,584 × (1 + 2.5%) ÷ (10.4% – 2.5%) = $798,342 Present Value of Terminal Value (PVTV) = TV / (1 + r)5 = $798,342 / ( 1 + 10.4%)5 = $487,355 The total value, or equity value, is then the sum of the present value of the cash flows, which in this case is $717,844.Simply Wall St - – Full article
Margin Calculation for AAPL Profit Margin = Net Income ÷ Revenue ∴ Profit Margin = 48.35 Billion ÷ 229.23 Billion = 21.09% Apple's margin has contracted in the past five years, with a 11.17% average growth in revenue outstripping average net income growth of 8.42%, which means that although revenue has increased, a smaller portion falls in to the bottom line. … Based on future expectations, AAPL's profit margin will become relatively steady, with an expectation of 6.62% in annual revenue growth and 6.78% earnings growth expected annually. … Thus, it is essential to run your own analysis on Apple's future earnings whilst keeping a watchful eye over their ability to maintain cost efficiency and top line growth as these are the factors driving future earnings growth according to our preliminary margin analysis.Simply Wall St - – Full article
For AAPL, the debt-to-equity ratio is 86.30%, which means, while the company’s debt could pose a problem for its earnings stability, it is not at an alarmingly high level yet. … NasdaqGS:AAPL Historical Debt Jan 4th 18 A basic way to evaluate AAPL's debt management is to see whether the cash flow generated from the business is at a relatively high level compared to the debt capital invested. … AAPL’s high cash coverage means that, although its debt levels are high, investors shouldn’t panic since the company is able to utilise its borrowings efficiently in order to generate cash flow.Simply Wall St - – Full article
Apple is available at price-to-earnings ratio of 18.24x, showing us it is undervalued based on its latest annual earnings update compared to the technology hardware, storage and peripherals average of 19.71x , and undervalued relative to the current US market average of 19.32x. … But, since Apple is a high-growth stock, we must also account for its earnings growth by using calculation called the PEG ratio. … Based on Apple's predicted 23.31% growth in earnings next year and PE ratio of 18.24x we see that Apple has a quite high PEG ratio of 2.63x.Simply Wall St - – Full article
After reading Apple Inc's (NASDAQ:AAPL) most recent earnings announcement (30 September 2017), I found it useful to look back at how the company has performed in the past and compare this against the latest numbers. … Check out our latest analysis for Apple Were AAPL's earnings stronger than its past performances and the industry? … This shows that, in the recent industry expansion, Apple has not been able to realize the gains unlike its industry peers.What does this mean?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)USD||Buenos Aires Stock Exchange||AR||ARS||28. Aug 2012|
|Technology Hardware, Storage and Peripherals|
|Company Analysis updated:||2018/02/24|
|Last estimates confirmation:||2018/02/21|
|Last earnings update:||2017/12/30|
|Last annual earnings update:||2017/09/30|
All dates 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.