Apple Stock Valuation

AAPL
 Stock
  

USD 174.23  1.20  0.69%   

What is the enterprise value of Apple? Calculating the true value of any business is not as easy as it may seem. While the market cap of a public entity, such as Apple, is its stock price multiplied by the total number of shares outstanding, calculating Apple's enterprise value requires a different approach. It uses Apple's balance sheet items such as long-term debt, the book value of the preferred stock, minority interest, and other important financials.
Apple Free Cash Flow is relatively stable at the moment as compared to the past year. The company's current value of Free Cash Flow is estimated at 60.43 Billion. Enterprise Value is expected to hike to about 1047 B this year, although Tangible Asset Value will most likely fall to nearly 358.4 B.
Apple Inc shows a prevailing Real Value of $177.09 per share. The current price of the firm is $174.23. At this time, the firm appears to be fairly valued. Our model approximates the value of Apple Inc from analyzing the firm fundamentals such as Current Valuation of 2780 B, return on equity of 162.82 %, and Profit Margin of 25.71 % as well as examining its technical indicators and Probability Of Bankruptcy. In general, we favor acquiring undervalued instruments and dropping overvalued instruments since, at some point, asset prices and their ongoing real values will blend.
  
Apple Valuation Module provides a unique way to ballpark how much the company is worth today. It is done using both, our quantitative analysis of the company fundamentals as well as its intrinsic market price estimation to project the real value. We also take into consideration other essential factors such as Apple's management style, its c-level domain expertise and tenure, its overall leadership history as well as current capital structure, and future earnings potential.

Apple Most Recent Valuation Data

Price Book
47.6
EPS Estimate Next Quarter
1.31
Price Sales
7.18
Forward Annual Dividend Yield
0.0053
EBITDA
129.6 B
Dividend Share
0.89
Fairly Valued
Today 174.23
Please note that Apple's price fluctuation is very steady at this time. Calculation of the real value of Apple Inc is based on 3 months time horizon. Increasing Apple's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for Apple Inc is useful when determining the fair value of the Apple stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Apple. Since Apple is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Apple Stock. However, Apple's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value.
155.73
Downside
177.09
Real Value
179.12
Upside
Estimating the potential upside or downside of Apple Inc helps investors to forecast how Apple stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Apple more accurately as focusing exclusively on Apple's fundamentals will not take into account other important factors:
Earnings
Estimates (12)
LowProjected EPSHigh
5.415.826.27
Details
Hype
Prediction
LowEstimated ValueHigh
171.83173.86175.89
Details
Potential
Annual Dividend
LowIncome Per ShareHigh
0.790.790.80
Details
21 Analysts
Consensus
LowTarget PriceHigh
145.00180.31210.00
Details
Traditionally analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Apple's intrinsic value based on its ongoing forecasts of Apple's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Apple's closest peers. When choosing an evaluation method for Apple Inc, ensure it is appropriate for the firm given its current financial situation and market classification. If more than one evaluation category is relevant, we suggest using both methods to arrive at a better estimate.

Apple Investments

224.74 Billion

Apple Valuation Drivers Correlation

Many accounts on the financial statements of Apple Inc are highly interrelated and sometimes correlated. Consequently, when conducting Apple's valuation analysis, one should examine all of the accounts reported to obtain a complete picture of its financial situation. We provide a unique feature to present a conventional correlation table purposely composed against different valuation-related drivers of Apple
Click cells to compare fundamentals

Apple Valuation Trend

Knowing Apple's actual value is paramount for traders to make sound investment determinations. Apple's real value is not only important for the investor to make better decisions but also for a more accurate overall view of Apple's financial worth over time since having this information enables investors and analysts to forecast the earnings more efficiently. Using both Apple's enterprise value as well as its market capitalization is the best way to gauging the value of the company and is usually enough for investors to make market timing descisions.

Apple Market Cap

Apple Inc is number one stock in market capitalization category among related companies. Market capitalization of Consumer Electronics industry is presently estimated at about 3.92 Trillion. Apple totals roughly 2.77 Trillion in market capitalization claiming about 71% of stocks in Consumer Electronics industry.
Capitalization  Revenue  Total debt  Workforce  Valuation

Apple Valuation Ratios as Compared to Competition

Comparative valuation techniques use various fundamental indicators to help in determining Apple's current stock value. Our valuation model uses many indicators to compare Apple value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Apple competition to find correlations between indicators driving Apple's intrinsic value. More Info.
Apple Inc is number one stock in price to earning category among related companies. It is number one stock in price to sales category among related companies fabricating about  0.25  of Price to Sales per Price to Earning. The ratio of Price to Earning to Price to Sales for Apple Inc is roughly  3.98 . Price to Sales Ratio is expected to hike to 4.19 this year. Comparative valuation analysis is a catch-all model that can be used if you cannot value Apple by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Apple's Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Apple's earnings, one of the primary drivers of an investment's value.
Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates Apple's worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in Apple and how it compares across the competition.

About Apple Valuation

The stock valuation mechanism determines the current worth of Apple Inc on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Apple Inc. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Apple Inc based exclusively on its fundamental and basic technical indicators. By analyzing Apple's financials, quarterly and monthly indicators, and its related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Apple's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Apple. We calculate exposure to Apple's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Apple's related companies.
Fiscal Year End
September
Industry
Consumer Electronics
Concentration
Technology Hardware, Storage & Peripherals
Full Time Employees
154 K
Service Category
Technology Hardware, Storage & Peripherals
Employer Id Number
94-2404110
Last ReportedProjected for 2022
Gross Profit88.2 B97.5 B
Profit Margin 0.21  0.21 
Apple Inc. designs, manufactures, and markets smartphones, personal computers, tablets, wearables, and accessories worldwide. Apple Inc. was incorporated in 1977 and is headquartered in Cupertino, California. Apple operates under Consumer Electronics classification in the United States and is traded on NASDAQ Exchange. It employs 154000 people.

Apple Quarterly Enterprise Value

2.38 Trillion

Apple's stock price is the clearest measure of market expectations about its performance. Without stock valuation, investors cannot independently discern whether Apple's value is low or high relative to the company's performance and growth projections. Determining the market value of Apple can be done in different ways, such as multiplying its stock price by its outstanding shares.
A single share of Apple represents a small ownership stake in the entity. As a stockholder of Apple, your percentage of company ownership is determined by dividing the number of shares you own by the total number of shares outstanding and then multiplying that amount by 100. Owning stock in a company generally confers both corporate voting rights and income from any dividends paid to the stock owner.

Apple Dividends Analysis For Valuation

Dividends per Basic Common Share is expected to hike to 0.65 this year, although the value of Payment of Dividends and Other Cash Distributions will most likely fall to (13.8 B). . Apple Earnings Before Interest Taxes and Depreciation Amortization EBITDA are relatively stable at the moment as compared to the past year. The company's current value of Earnings Before Interest Taxes and Depreciation Amortization EBITDA is estimated at 83.53 Billion. Earnings before Tax is expected to hike to about 70.9 B this year, although the value of Accumulated Retained Earnings Deficit will most likely fall to nearly 81.6 B.
Last ReportedProjected for 2022
Payment of Dividends and Other Cash Distributions-12.8 B-13.8 B
Dividend Yield 0.016  0.0142 
Dividends per Basic Common Share 0.60  0.65 
There are various types of dividends Apple can pay to its shareholders, and the actual value of the dividend is determined on a per-share basis. It is to be paid equally to all of Apple shareholders on a specific date, known as the payable date. The cash dividend is the most common type of dividend payment - it is the payment of actual cash from Apple Inc directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Apple pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Apple by the value of the dividends paid out.

Apple Valuation Growth Rates

Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines. Note, investing in growth stocks can be very risky. If the company such as Apple does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
Quick Ratio0.70
Earnings Quarterly Growth-10.60%
Revenue Growth1.90%
Payout Ratio14.71%
Enterprise Value To Ebitda21.45
Earnings Growth-7.70%
Enterprise Value To Revenue7.17

Apple Current Valuation Indicators

Valuation refers to the process of determining the present value of Apple Inc and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Apple we look at many different elements of the entity such as Apple's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. Apple's valuation analysis is also a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final Apple's valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Apple, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Apple's valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Apple's worth.
Please continue to Trending Equities. Note that the Apple Inc information on this page should be used as a complementary analysis to other Apple's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Volatility Analysis module to get historical volatility and risk analysis based on latest market data.

Complementary Tools for Apple Stock analysis

When running Apple Inc price analysis, check to measure Apple's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Apple is operating at the current time. Most of Apple's value examination focuses on studying past and present price action to predict the probability of Apple's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Apple's price. Additionally, you may evaluate how the addition of Apple to your portfolios can decrease your overall portfolio volatility.
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Is Apple's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Apple. If investors know Apple will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Apple listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth YOY
-0.077
Market Capitalization
2783.3 B
Quarterly Revenue Growth YOY
0.019
Return On Assets
0.22
Return On Equity
1.63
The market value of Apple Inc is measured differently than its book value, which is the value of Apple that is recorded on the company's balance sheet. Investors also form their own opinion of Apple's value that differs from its market value or its book value, called intrinsic value, which is Apple's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Apple's market value can be influenced by many factors that don't directly affect Apple's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Apple's value and its price as these two are different measures arrived at by different means. Investors typically determine Apple value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Apple's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.