Valuation Overview

Growth Story

Over the next few years, revenue is expected to grow by 1.67%, lower than industry average of 2.12%.

Growth Trajectory

Profitability

In the growth phase company makes 31.95% profit on every dollar of sales, higher than industry average of 5.80%.

Profitability Trajectory

Risk Profile

Investors expect at least 9.40% return to justify the risk of holding stock.

Risk vs Return

Required Return (Cost of Capital) (%)
Return on Invested Capital (%)

Financial Health Overview

Enterprise Value
1.66T USD
Equity Value
1.61T USD
FCF Yield
34.37%
Average ROIC
83.32%
Cost of Capital
9.19%
P/E Ratio
35.05x
Financial MetricMost Recent 12 months (USD)Previous Year (USD)
Revenues408.63B USD391.04B USD
Operating Income or EBIT130.21B USD123.22B USD
Interest Expense----
Book Value Of Equity65.83B USD56.95B USD
Book Value Of Debt101.70B USD106.63B USD
Cash and Marketable Securities55.37B USD65.17B USD
Number of Shares Outstanding14.86B--
Minority interests0 USD0 USD
Current Stock Price233.51 USD--
Effective Tax Rate24.00%--
Marginal Tax Rate25.00%--

Performance vs Industry

Revenue Growth
+2.38%
4.49%Company
vs
2.11%Industry
Above Industry
Operating Margin
+26.07%
31.86%Company
vs
5.80%Industry
Above Industry
Apple Inc. demonstrates superior performance in both growth and profitability compared to industry peers, indicating strong competitive advantages and operational excellence.

Terminal Value Analysis

Growth Rate
4.59%
Cost of Capital
8.83%
Return on Capital
17.66%
Reinvestment Rate
26.04%
Terminal value represents 59% of total enterprise value, based on 4.59% perpetual growth and 8.83% discount rate.

Equity Value Breakdown

ComponentValueType
Present Value (Terminal Value) 983.63B USD Add
Present Value (Cash Flow Over Next 10 Years) 681.79B USD Add
Value of Operating Assets 1.66T USD Sub-total
Debt 101.69B USD Subtract
Minority Interests — Subtract
Cash 55.37B USD Add
Value of Equity 1.61T USD Sub-total
Number of Shares 14.86B shares Divisor
Estimated Value per Share (Fair Value) 108.98 USD Total
Current Market Price 233.50 USD Reference

Financial Projections

Total FCF Present Value
681.79B USD
Avg Revenue Growth
2.77%
Avg Operating Margin
31.96%
Avg ROIC
83.32%
Year 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 Terminal Year
REVENUE
Revenue428.44B USD435.60B USD442.88B USD450.29B USD457.81B USD468.15B USD481.46B USD497.97B USD517.96B USD541.78B USD566.70B USD
Growth Rate 4.84% 1.67% 1.67% 1.67% 1.67% 2.25% 2.84% 3.42% 4.01% 4.59% 4.59%
PROFITABILITY
Operating Income136.52B USD139.04B USD141.48B USD143.97B USD146.50B USD149.80B USD154.06B USD159.35B USD165.74B USD173.37B USD181.34B USD
Operating Margin 31.86% 31.91% 31.94% 31.97% 32.00% 32.00% 32.00% 32.00% 32.00% 32.00% 32.00%
EBIT (1-tax)103.76B USD105.67B USD107.53B USD109.41B USD111.34B USD113.55B USD116.47B USD120.15B USD124.64B USD130.02B USD136.01B USD
CASH FLOW
Reinvestment2.62B USD2.66B USD2.70B USD2.75B USD3.78B USD4.86B USD6.03B USD7.30B USD8.70B USD9.10B USD35.42B USD
Free Cash Flow101.14B USD103.00B USD104.82B USD106.66B USD107.55B USD108.69B USD110.44B USD112.84B USD115.93B USD120.92B USD100.58B USD
Terminal Value--------------------2.37T USD
Present Value92.45B USD86.06B USD80.05B USD74.46B USD68.64B USD63.47B USD59.07B USD55.34B USD52.19B USD50.02B USD—
EFFICIENCY
ROIC 92.51% 92.06% 91.56% 91.06% 90.59% 89.63% 88.54% 87.33% 86.02% 84.66% 17.66%
Cost of Capital 9.39% 9.39% 9.39% 9.39% 9.39% 9.28% 9.17% 9.05% 8.94% 8.83% 8.83%
Sales/Capital 2.73x 2.73x 2.73x 2.73x 2.73x 2.73x 2.73x 2.73x 2.73x 2.73x —

Profitability & Efficiency

Operating Margin (%)
ROIC (%)

Value Creation Analysis

ROIC (%)
Cost of Capital (%)

Operational Cash Flow Analysis

Free Cash Flow ($B)
Reinvestment ($B)