AAPL  Apple Inc.

Exchange

NASDAQ

Sector

Technology

Industry

Computer Manufacturing

Market Cap.

862.08B

Vuru Grade

72.41/100

Current Price

$166.90
-2.14 (-1.27%)

Growth Price

$141.88
Overvalued by 14.99%

Stability Price

$29.04
Overvalued by 82.60%

Company Metrics

  • P/E 18.95
  • P/S 3.91
  • P/B 6.6
  • EPS 8.81
  • Cash ROIC 33.55%
  • Cash Ratio 0.74
  • Dividend 2.52 / 1.55%
  • Avg. Vol. 28.38M
  • Shares 5.17B
  • Market Cap. 862.08B

Company Description

Apple Inc., together with subsidiaries, designs, manufactures, and markets personal computers, mobile communication and media devices, and portable digital music players, as well as sells related software, services, peripherals, networking solutions, and third-party digital content and applications worldwide. The company sells its products worldwide through its online stores, retail stores, direct... more


Download 10 Years of Financial Statements:
Income Statement   Balance Sheet   Cash Flow

News

Apple scientists disclose self-driving car research
Reuters - 8 hours ago
(Reuters) - Research by Apple Inc (AAPL.O) computer scientists on how self-driving cars can better spot cyclists and pedestrians while using fewer sensors has been posted online, in what appears to be the company's first publicly disclosed paper on ...
Inside This Questionable Apple Inc. Rumor
Madison.com - 18 hours ago
Fast Company recently published a report claiming that Apple (NASDAQ: AAPL) is "leaning heavily toward" using chipmaker Intel's (NASDAQ: INTC) 5G cellular modems exclusively in a next-generation iPhone, leaving longtime Apple supplier Qualcomm ...
Intel Corp. Reportedly to Take More Apple Inc. iPhone Share in 2018 - Arizona Daily Star
This Is the Most Exciting Product That Apple Inc. Is Planning for 2018
Madison.com - 21 hours ago
Next year, Apple (NASDAQ: AAPL) is expected to launch three new iPhones. One is believed to be an iPhone that shares many of the key traits of this year's premium iPhone X (TrueDepth camera system for Face ID and Animoji and a full-face display) with ...
Apple Solidifies Its Hold on the Smartphone Market
U.S. News & World Report - 23 hours ago
Apple Inc. (Nasdaq: AAPL) investors have waited for months for the iPhone X to arrive. Now that it's here, they are on the lookout for any piece of information they can get about how the iPhone X and iPhone 8 are performing in the market, and the ...
Apple Inc. (AAPL): What are the Technicals Saying? - Economic News
Apple Inc. (AAPL) PT Raised to $200.00 - The Ledger Gazette
Apple, Inc. Started Working on HomePod in 2012
Madison.com - 14 hours ago
Apple's (NASDAQ: AAPL) forthcoming HomePod won't see the light of day until "early 2018," which will be nearly six years after the company started developing the smart speaker, and almost four years after Amazon.
Why Apple's HomePod Is Three Years Behind Amazon's Echo - Bloomberg
Apple HomePod Unlikely to Hit the Shelves This Christmas - Nasdaq
Ireland promises progress in Apple tax recovery in coming weeks
Reuters - 18 hours ago
DUBLIN (Reuters) - Ireland expects to make progress in recovering up to 13 billion euros ($15 billion) in disputed taxes from Apple Inc (AAPL.O) in the coming weeks, its prime minister said on Tuesday, following EU criticism that Dublin was moving too ...
Ireland closer to collecting Apple taxes - Seeking Alpha
3 Things You Should Buy On Black Friday
Seeking Alpha - 12 hours ago
Investing $1,000 in Apple (AAPL) 10 years ago would have given you about 3.5 shares (before the split). Today, your 3.5 shares would be split in 25 shares and would be worth $4,250.
Apple Inc.'s Big New Feature for Its 2019 iPhones Revealed
Motley Fool - Nov 17, 2017
This year's iPhone X includes a 3D sensor embedded in the front-facing camera system, which Apple dubs a TrueDepth camera.
Here's How Apple Inc. Will Keep the 6.1-inch LCD iPhone Cheap - Nasdaq
Here are some rumors about the next iPhone - Business Insider
Apple Inc. (AAPL) Closes 1.86% Up on the Day for November 21
Equities.com - 12 hours ago
Shares of Apple Inc. (AAPL) ended the trading day Tuesday at $173.14, representing a move of 1.86%, or $3.16 per share, on volume of 24.92 million shares.
Chartists Placing Apple Inc (AAPL) on Their Radar - Financial Newsweek
Apple Inc. News: Your iPhone X Is Already Obsolete
U.S. News & World Report - Nov 14, 2017
Kuo says Apple is planning on releasing a second-generation iPhone X in 2018 with the same 5.8-inch OLED screen size as the current model.
Here's How Apple Inc. Can Differentiate Its OLED iPhones Next Year - Motley Fool
Apple: How Big Is Too Big? - Seeking Alpha
Growth Rate Assumed by Market

We did a reverse valuation to calculate the growth rate the market is assuming for AAPL to be considered fairly valued at its current market price. It's useful to compare this to the growth rate we're assuming for the Growth Price.

Future Free Cash Flow Growth Rate

This is the annual growth rate we've applied to calculate AAPL's Free Cash Flow for the next 10 years. To calculate it, we looked at several time periods of the last 10 years. Feel free to adjust it, but we limit the initial growth rate to 20% and slow it down over the years. Otherwise, long-term sustainability issues come into play.

Discount Rate

The discount rate is the annual rate of return an investor requires to take the risk of investing in a single stock. To account for that risk, this should be above 8-10%, as this is the avg. annual rate of return for the S&P500 over the past 100 years.

$166.90 Current Price

$141.88 Growth Price (DCF)

Overvalued by 14.99%


Growth Rate Assumed by Market: 19.69%


Future Free Cash Flow Growth Rate: 15.0%


Discount Rate: 15.0%


Show Free Cash Flow numbers

$29.04 Stability Price (EPV)

Overvalued by 82.60%


Discount Rate: 15.0%

$255.51 Book Price

Undervalued by 53.09%


Excellent Cash Return on Invested Capital over the past 5 years

AAPL has efficiently invested its financial resources in buildings, projects, and equipment, resulting in strong returns. Annual Reports can be useful in identifying the cause of one-time events and future sustainability.

AAPL has created $33.55 of cash for every $100 invested.
Figures in USD. Fiscal year ends in September
20132014201520162017
Free Cash Flow 44.59B 49.90B 69.78B 52.28B 50.80B
divided by
Invested Capital 122.80B 143.31B 168.27B 175.53B 200.32B
Cash ROIC 36.31% 34.82% 41.47% 29.78% 25.36%

Excellent Return on Equity over the past 5 years

Over the past 5 years, AAPL has generated strong profits with money shareholders have invested. This is considered one of the best indicators of quality management. Beware of extremely high Return on Equity (> 50%) as this is often unsustainable.

AAPL has generated $36.37 of Earnings for every $100 of Shareholders' Equity.
Figures in USD. Fiscal year ends in September
20132014201520162017
Net Income 37.04B 39.51B 53.39B 45.69B 48.35B
divided by
Stockholders' Equity 123.55B 111.55B 119.36B 128.25B 134.05B
Return on Equity 29.98% 35.42% 44.74% 35.62% 36.07%

Excellent Business Performance over the past 10 years

AAPL has been able to maintain profitability in good times and bad. This could mean AAPL has an extremely strong business or has the ability to scale down costs when needed. This should be a fairly resilient business, but double check for future sustainability by looking at its Risk Factors in the Annual Report.

AAPL has created positive free cash flow for 9 or more of the past 10 years.
Figures in USD. Fiscal year ends in September
2008200920102011201220132014201520162017
Free Cash Flow 8.40B 9.02B 16.59B 33.27B 41.45B 44.59B 49.90B 69.78B 52.28B 50.80B

Weak Balance Sheet

AAPL's financial position is not ideal. The key is to check whether AAPL is using debt to fuel its growth and the sustainability of that tendency. Highly capital intensive businesses (see Economic Moat) follow this route, which can deeply impact the future prospects of the business.
Figures in USD. Fiscal year ends in September
2008200920102011201220132014201520162017
Cash 24.49B 23.46B 25.62B 25.95B 29.13B 40.55B 25.08B 41.60B 67.16B 74.18B
Current Assets 34.69B 31.56B 41.68B 44.99B 57.65B 73.29B 68.53B 89.38B 106.87B 128.65B
Total Assets 39.57B 47.50B 75.18B 116.37B 176.06B 207.00B 231.84B 290.48B 321.69B 375.32B
Current Liabilities 14.09B 11.51B 20.72B 27.97B 38.54B 43.66B 63.45B 80.61B 79.01B 100.81B
Total Liabilities 18.54B 15.86B 27.39B 39.76B 57.85B 83.45B 120.29B 171.12B 193.44B 241.27B
Stockholder' Equity 21.03B 31.64B 47.79B 76.62B 118.21B 123.55B 111.55B 119.36B 128.25B 134.05B
Current Ratio 2.46 2.74 2.01 1.61 1.50 1.68 1.08 1.11 1.35 1.28
TL-to-TA 0.47 0.33 0.36 0.34 0.33 0.40 0.52 0.59 0.60 0.64

Consistent Reinvestment of Profits over the past 10 years

AAPL has consistently retained profits. This may put AAPL in a strong position to invest for the future, by buying new machinery, investing in R&D or a number of other options. By effectively using these earnings, AAPL can greatly improve their long-term economic picture.
Figures in USD. Fiscal year ends in September
2008200920102011201220132014201520162017
Retained Earnings 13.85B 23.35B 37.17B 62.84B 101.29B 104.26B 87.15B 92.28B 96.36B 98.33B
Retained Earnings Growth - 68.67% 59.16% 69.07% 61.18% 2.93% -16.41% 5.89% 4.42% 2.04%

Competitive Advantage over the past 10 years

AAPL likely has a competitive advantage which prevents other companies from entering or competing in their industry. This could be strong branding, the ability to keep costs low, or some other characteristic that is hard to replicate. Look at future prospects to determine its sustainability.

$21.46 of every $100 of Revenue have been pure profit, on average over the past 10 years.
Figures in USD. Fiscal year ends in September
2008200920102011201220132014201520162017
Net Income 4.83B 8.24B 14.01B 25.92B 41.73B 37.04B 39.51B 53.39B 45.69B 48.35B
divided by
Revenue 32.48B 42.91B 65.23B 108.25B 156.51B 170.91B 182.80B 233.72B 215.64B 229.23B
Net Profit Margin 14.88% 19.19% 21.48% 23.95% 26.67% 21.67% 21.61% 22.85% 21.19% 21.09%

Satisfactory Pricing Power over the past 10 years

Consistency is vital. AAPL has been able to maintain gross margins fairly consistently, which is a strong indication of their ability to raise prices with inflation. This potentially leaves flexibility in inflationary environments to raise prices on consumers and maintain profitability.

$39.20 of every $100 worth of sales have been Gross Profit, on average over the past 10 years.
Figures in USD. Fiscal year ends in September
2008200920102011201220132014201520162017
Gross Profit 11.15B 17.22B 25.68B 43.82B 68.66B 64.30B 70.54B 93.63B 84.26B 88.19B
divided by
Revenue 32.48B 42.91B 65.23B 108.25B 156.51B 170.91B 182.80B 233.72B 215.64B 229.23B
Gross Margin 34.31% 40.14% 39.38% 40.48% 43.87% 37.62% 38.59% 40.06% 39.08% 38.47%

Low Capital Intensity over the past 10 years

AAPL has consistently used a small portion of their Net Income buying new equipment or investing in new facilities. This indicates that AAPL may require minimal investment to stay competitive. This leaves them with extra money to spend on growing their business and potentially buying back stock.

21.89% of Profits are being spent on Capital Expenditures, like Property, Plant, & Equipment, required to run the business.
Figures in USD. Fiscal year ends in September
2008200920102011201220132014201520162017
Capital Expenditure 1.20B 1.14B 2.01B 4.26B 9.40B 9.08B 9.81B 11.49B 13.55B 12.80B
divided by
Net Income 4.83B 8.24B 14.01B 25.92B 41.73B 37.04B 39.51B 53.39B 45.69B 48.35B
Capital Expenditure Ratio 24.80% 13.89% 14.31% 16.43% 22.53% 24.51% 24.84% 21.52% 29.65% 26.46%

No Dividend History over the past 10 years

AAPL has never distributed dividends or has recently suspended their dividend distribution.
Figures in USD. Fiscal year ends in September
2008200920102011201220132014201520162017
Dividend Paid - - - - - - - - - -
divided by
Shares Outstanding 902.14M 907.01M 924.71M 936.65M 6.62B 6.52B 6.12B 5.79B 5.50B 5.25B
Dividend Paid Per Share - - - - - - - - - -
Price at Year End 86.29 211.64 323.66 405.00 509.59 554.52 112.52 107.32 115.82 153.95
Dividend Yield - - - - - - - - - -

History of Stock Buybacks over the past 10 years

AAPL has some history of delivering increased value for shareholders in the form of stock buybacks. These have helped improve financial metrics and increase each shareholders' relative ownership stake in the company, due to fewer shares outstanding and holding the same number of shares.
Figures in USD. Fiscal year ends in September
2008200920102011201220132014201520162017
Shares Outstanding 902.14M 907.01M 924.71M 936.65M 6.62B 6.52B 6.12B 5.79B 5.50B 5.25B
Stock Bought Back - -0.54% -1.91% -1.27% -85.85% 1.47% 6.52% 5.69% 5.32% 4.73%
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Discussion
Sort By:
16
Posted by twentio  (on March 19, 2012)
Ok so Apple announces a dividend of $2.65 / quarter = $10.60 per year. At $600 that's 1.8% yield. (Of course the thing is their stock price is growing so darn quickly that it's not going to be anywhere near that yield in a year's time.) Why do I even bat an eyelash at an extra 1.8% gain, when I've made a 30% gain in the past couple of months?

The real question is, how are they positioning themselves as a business? Does this dividend mark a change in the thinking of management, as in a "stable" company rather than a "growth" company?
2
Posted by andrew40  (on May 28, 2012)
Look at the dividend as covering all your dealing costs, then the growth is reflected as true growth!
1
Posted by quantumcanuck  (on March 20, 2012)
just think of it as a bonus on top of what you get with price growth. it's no different than a dividend on any other stock.
8
Posted by alexrasmussen  (on March 22, 2012)
Jobs is rolling over in his grave. He promised never to offer a dividend, whether Tim is giving in to demands or Jobs left a 3 year plan for him to follow - either way you can't expect this to grow at these rates for more than a few more years. Spending 45B over 3 years purely to satisfy investors isn't smart business.
3
Posted by formerhedgie  (on March 22, 2012)
Doesn't make sense to me either. They said they're doing it to attract new investors... Everyone already owns them!

These guys are cashing in their chips. It's almost as though the children finally got hold of the ship and there's no metaphorical father figure to tell them no.
2
Posted by digitizedsociety  (on March 22, 2012)
Not everybody owns APPL. Funds that look for dividends do not have APPL shares because it was always "growth".
5
Posted by colinjensen  (on March 18, 2012)
For Apple to be fairly valued at its current price, the market’s assuming 20% yearly growth in their free cash flow. In 2010, it grw by 84% and in 2011, it grew by 100%! I don’t know how long it’ll continue but Apple is definitely undervalued right now.
1
Posted by aike  (on December 1, 2012)
I disagree. I think Apple is grossly overvalued because speculators want more money (and that's the thing -- the vast majority of these figures are driven by speculation).

Apple is a very strong company that has been able to draw a devoted following of consumers to pour money into it's coffers each quarter. But there's only so much iteration of the iPhone, iPad, iPod there can be before fanboi consumers realize that it's the same old thing.

When that happens, I expect Apple's stock will take a dive much as occurred with Microsoft's stock. They won't suffer too much though. Much like Microsoft, they will find stability.
1
Posted by jessicaG  (on March 19, 2012)
There’s no way they’ll be able to continue like this. They lost Jobs. He pulled everything together. Their product pipeline might continue for 2 years but after that, they’re kaput and we’ll be stuck using a Dell!

See the $10 billion dollar buyback and new dividend for proof. Jobs would have never let that happen!!
1
Posted by formerhedgie  (on March 19, 2012)
Even if that’s true, still doesn’t stop it from being a good investment right now
5
Posted by gsanta111  (on March 23, 2012)
it does if you're thinking long term
1
Posted by JerryJihaoBai  (on June 8, 2017)
; drop table users;
1
Posted by ValueHunter  (on August 2, 2016)
Briton Burned After iPhone Explodes In Pocket.

http://www.msn.com/en-ca/news/world/briton-burned-after-iphone-explodes-in-pocket/ar-BBv8Zne?li=AAggFp5


There may be a buying opportunity coming up shortly.

1
Posted by Scudy  (on January 20, 2013)
Multiple Patents have been issued to Apple. Look them up.
1
Posted by milindl9  (on May 28, 2013)
13. According to me yes. After Growth stage, the company right now is in stable stage. But due to absence of Steve and fierce competition, management assumed lesser profits in coming years, which affect company's share price adversely. Hence to keep investors satisfied, management might have declared dividend. This strategy may be for two to three years. If within that period, company brings out something extra ordinary gadget, next year, company will not pay dividend.
2
Posted by pbanik  (on June 4, 2013)
@ milindl9 If the company isn't using the cash for capital expenditures, or buybacks, or buying other companies, distributing the shareholders in the form of dividends make sense. Holding the cash, which belongs to shareholders makes no sense, unless there is no better use for the cash reserves. If the shares continue to drop, the company should consider buybacks. This will create shareholder value. Steve Jobs must be rolling over in his grave, because he would have died if a dividend was declared. The only time to invest in a company that doesn't pay a dividend in my opinion, is a company that can proves it can create value over time in terms of capital appreciation, (i.e. Berkshire Hathaway is an excellent example of this policy). Look at BRK-A and BRK-B in terms of their price when they were first issued compared today, and how much they have appreciated over the years. It is over 25%/year I believe on average for each. I don't care about dividends as much as some people. If I can get a profit in the form of capital gains or dividends, it doesn't matter to me. What does matter how it is treated for taxation purposes. The reality is capital gains and dividends shouldn't be taxed, because if you're a shareholder, you're already being taxed, because the corporation pays corporate taxes on income.
1
Posted by Alexleroi  (on December 18, 2012)
AAPL's gotta come up with something technologically new and bold, otherwise its profit margins will shrink. It's an inevitable law of economics that "First movers" invent or reinvent stuffs and reap huge profits, and then competitors follow suit or make improvements which result in a larger aggregate supply of products that reduces profits. Unless AAPL reinvents itself, or it will run aground.
1
Posted by AniltonNeto  (on November 23, 2012)
Why iphone 5 made app go down
1
Posted by pbanik  (on November 29, 2012)
@AniltonNeto I'm not sure what you're trying to say. If you're asking why the stock price of AAPL declined after the release of iPhone5, here's an article that might explain it.

Apple Market Value Down $70 Billion Since iPhone 5 Release
http://mashable.com/2012/10/09/apples-market-value-has-dropped-by-more-than-70-billion-since-iphone-5-release/
1
Posted by divmon  (on June 9, 2012)
Why is this rated so low? These rating can't be right. It shows Dell 10 points higher... LOL Not.
7
Posted by #juan  (on June 15, 2012)
That is the problem with this tool. Since a computer is looking at the numbers, something in the formula is setting the rating lower (probably something to do with how much cash AAPL has). That is why I dont make a decision based on what vuru says alone, to me it is just another "point of view"
2
Posted by mattseeger  (on June 22, 2012)
Absolutely right. AAPL is way to flush with cash on the balance sheet. When you stop growing this looks bad. Imagine how a computer would rate this if apple declares a dividend that would distribute that. Right now to a computer it looks a like a company hoarding earnings.
1
Posted by totallyrad510  (on October 8, 2012)
How low will it go?
1
Posted by AniltonNeto  (on December 17, 2012)
Apple have to be careful or one day will crush
1
Posted by pbanik  (on October 9, 2012)
@totallyrad510 I think it's still going to be on the rise for a while. Analysts project it hitting upwards of $900.
http://beta.fool.com/wealthlift/2012/08/29/different-trajectories-tech-elite/10853/

That being said, I think the best time to buy is when a stock is more reasonably priced, even though the P/E ratio (15) it has right now is reasonable considering its' fantastic growth. However, all growth companies, AAPL included, eventually stop becoming growth companies. It might not happen for a while, but Google's Android is dominating the smartphone market, even though Apple's IPhone gets more hype. I think you might have to wait for Apple to cool off and fall out of favor like Nokia, Alcatel-Lucent, RIMM and other tech darlings. Microsoft and Cisco are examples of companies that were trading much higher than they are now at their height, but still might represent good long-term investments. The same goes for Intel.
1
Posted by totallyrad510  (on October 12, 2012)
I had my finger on the trigger to sell at 70x.xx sure wish I would have and started from this point again. Oh well, good things come with time. Thanks for you input.
1
Posted by pbanik  (on October 12, 2012)
@totallyrad510 You're welcome. As for analysts' projections, they're just that. No one knows what the future holds, so these projections could just as likely if not moreso turn out to be incorrect. I wish I bought AAPL in late 2008 or early 2009 when it was trading in the high 80s or low 90s.
1
Posted by totallyrad510  (on October 15, 2012)
Don't we all!!
1
Posted by pbanik  (on October 16, 2012)
@totallyrad510. You never know...AAPL could be a great undervalued stock again, and we can just wait and buy then.
1
Posted by totallyrad510  (on October 16, 2012)
I looks like it might pull back today. What platform/ broker do you use? If you don't mind me asking.
1
Posted by pbanik  (on October 16, 2012)
I use MD Financial and Royal Bank of Canada. Of course you can use discount online brokers like questrade.com, TD Waterhouse, scotttrade.com, tdameritrade.com, and etrade.com as examples. I use a variety of tools to conduct research. I've also read quite a few books about investing from the likes of Warren Buffett, Philip Fisher,
Benjamin Graham, Peter Lynch and Sir John Templeton, all of whom are considered among the greatest investors of alltime.
1
Posted by AniltonNeto  (on December 17, 2012)
Why Apple Store Still losing with Google Play if google still havin' problems with phishin' scheme on their Store?
1
Posted by Robert.T  (on March 18, 2012)
Excited to see if Cook will put together a special dividend or at least buyback some stock. They have so much cash!! $25B just sitting there collecting interest. Do something with it!!
-2
Posted by don_freeman  (on March 12, 2012)
Any ideas as to when this upswing is going to end? Apple seems pretty unstoppable at this point, but I know it's going to slow down or drop soon. I got in last November after they released their financials from last year and the DCF was 500 but trading at 400. Trying to figure out if I should get out now or not, since the price now is way above the DCF/growth price...
1
Posted by AniltonNeto  (on November 29, 2012)
my question is why apple get down after release of Iphone 5 in all europe?
1
Posted by aike  (on December 1, 2012)
The multitude of legal battles between Apple and Samsung may have had a hand in this, especially since Apple is seen as stingy and self-interested by many techies.