Apple Inc. (AAPL) Stock Analysis
Apple Inc.
▾ What's in the 58/100 risk score? (higher = riskier)
Contributions (weight × component score) sum to the total. This near-term score now includes fundamental health (leverage, FCF trend, DCF applicability). It excludes the the Altman Z score, whose retained-earnings input this filer does not report separately, which relies on a proxied (estimated) input. See the Financial Health section for the full balance-sheet read.
How to read AAPL
A profitable, cash-generating business — our discounted-cash-flow estimate is the primary lens, cross-checked against what growth the price implies and against peers.
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The verdict + intrinsic value (our DCF) ↓
Our estimate of what a share is worth, versus today's price.
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Reverse-DCF + the interactive calculator ↓
See the growth the price assumes, then flex every assumption yourself to pressure-test it.
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Football field + peers ↓
A cross-check across methods and against comparable companies.
Is now a good time to buy AAPL?
Macro: Neutral / mid-cycle
AAPL trades at $305.93 vs an estimated
intrinsic value
of $115.28
— a +165.4% premium to model IV.
Today's price is consistent with AAPL's owner-earnings free cash flow per share growing about 25.2% per year over the next 5 years (the
price-implied growth rate).
Our DCF projects
modeled growth
of 8.8% per year based on history + sector defaults
(analyst consensus estimates not yet integrated).
Note: this is a 5-year, per-share view. The Reverse-DCF section below asks the same question on a stricter 10-year free-cash-flowFree Cash Flow (FCF) — Operating cash flow minus capital spending: cash left after a company covers operating costs, taxes and interest and reinvests in the business — but BEFORE repaying debt principal or paying dividends. The cash actually available to investors.
Why it matters: A company can show big profits on paper while burning through cash. FCF is what actually fills the bank account.
Reference: Healthy mature businesses convert 8–15% of revenue into FCF · Growth companies often negative
Full explanation → basis — so its growth number is different, not contradictory.
▾ Exactly how this 5-year figure is computed
Current price: $305.93 (live)
Discount rate: 10.2%; terminal growth: 3.0%
Forecast: 5 years explicit growth, then a linear fade to terminal; end-of-period cash flows discounted to today
Growth path: the model's probability-weighted scenarios (conservative 40% / base 35% / optimistic 25%) — see the "Three Scenarios, Weighted" table below for the three IVs
Method: solve for the constant 5-year per-share growth rate that, run through this same structure, makes the intrinsic value equal today's price. (The 10-year figure below uses a flat 10-yr path instead — hence a different number.)
Not investment advice. The model can be wrong. Verify the assumptions in the sections below and consider consulting a licensed advisor for significant decisions.
What growth must the market believe? Reverse DCF — Instead of asking "what is this stock worth?", asks "what growth rate is the current market price already assuming?"
Why it matters: It crystallizes the bull thesis as a single number you can argue with. If the market expects 40% growth for 10 years and you do not believe that, the stock is overvalued.
Reference: 10–15% = sustainable for strong companies · 20–25% = exceptional · 30%+ = historically very rare
Traditional DCF asks "what is this stock worth?" Reverse DCF flips it: it treats today's price as correct and solves for the growth rate that justifies it. In plain terms — if our model is right about everything else, the company's cash flow would have to grow (or shrink) by this much every year for the next 10 years for today's price to make sense. If that required growth looks unrealistic, the price is stretched; if it looks easy to beat, the price may be cheap.
Why it matters: A company can show big profits on paper while burning through cash. FCF is what actually fills the bank account.
Reference: Healthy mature businesses convert 8–15% of revenue into FCF · Growth companies often negative
Full explanation → must grow at:
▾ Exactly how this 10-year figure is computed
Forecast length: 10 years, single flat growth rate (no fade)
Terminal growth after year 10: 3.0%
Discount rate: 10.2% (the rate the model used)
Price used: $305.93 — the live price shown on this page (not frozen)
Method: solve for the constant annual growth rate that makes the discounted 10-year FCF stream + terminal value equal today's price.
Few companies sustain 18-25% CAGR for a decade. A handful of historical compounders did — typically while still relatively small. Achieving this at mega-cap scale (\$500B+) is dramatically harder because the base is already enormous.
For reference: Exceptional is not a compliment here — sustaining mid-teens cash-flow growth for ten straight years is rare at scale. The price is betting on a top-tier outcome.
▾ How we computed this · Reality check thresholds · Assumptions
- Starting FCF/share: $5.73 (TTM)
- Discount RateDiscount Rate — The annual return you demand for taking single-stock risk instead of buying a safe Treasury or index fund.
Why it matters: Higher discount rate = stricter valuation (a stock has to produce more cash to be worth holding). Lower = more generous.
Reference: 8–12% is standard · 9–10% matches S&P 500 historical return · Below 7% is illogical for single-stock risk
Full explanation →: 10.2% — standard 8-12%; 9-10% matches S&P 500 historical return - Terminal Growth RateTerminal Growth Rate — The growth rate we assume the company holds forever, after the explicit 10-year forecast period ends.
Why it matters: It anchors the long-tail value. Cannot mathematically exceed long-term GDP growth or the company eventually becomes larger than the global economy.
Reference: 2–3% (matches long-term US GDP growth) · Above 4% is mathematically problematic
Full explanation →: 3.0% — matches long-term GDP growth - Forecast horizon: 10 years explicit + terminal perpetuity
| ≤ 0% | Priced for decline — likely undervalued OR dying business |
| 5-12% | Reasonable; sustainable for quality businesses |
| 12-18% | Demanding — strong execution required |
| 18-25% | Exceptional — few companies sustain for a decade |
| 25-35% | Heroic — historically very rare |
| 35%+ | Borderline impossible at scale |
Sustaining 30%+ cash-flow growth for a full decade at scale is exceedingly rare — the bar is brutally high.
Use the interactive calculator below to change the discount rate, growth and terminal-growth assumptions and watch the value move.
Football field: where does the price sit?
Different valuation methods produce different fair-value ranges depending on assumptions. Plotting them together lets you see at a glance whether the current price is reasonable across approaches, or only one specific lens.
Industry multiples sourced from: sector: Technology. See the Peer Basket section below for the peer comparison and its limited-comparables caveat.
Quality & solvency checks
Cheap stocks can be cheap for a reason. These screens warn when a low valuation comes paired with structural fragility.
Why it matters: Cheap-looking stocks (low P/E or P/B) often have low Z-scores because the market knows the company is dying. Z-score warns you before you fall into a value trap.
Reference: > 3.0 = safe zone · 1.81–3.0 = grey zone · < 1.81 = distress zone
Full explanation →
We can't produce a trustworthy Altman Z here: retained earnings weren't separately reported in our data, so a core input would have to be fabricated. Rather than show a categorical "distress" verdict from an invented number, we mark it unavailable. Judge financial health from the leverage, cash position, and the measurable Piotroski checks instead.
Why it matters: High score = fundamentals improving. Low score = deteriorating. Especially powerful for filtering cheap stocks: cheap + high F-score historically outperforms; cheap + low F-score is often a value trap.
Reference: 7–9 = strong · 4–6 = mediocre · 0–3 = weak
Full explanation →
▾ The checks — what passed, what didn't (and what we couldn't measure)
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✓ Positive net incomeNet income $112,010.0M in the latest year.
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✓ Positive operating cash flowOperating cash flow $111,482.0M (was $118,254.0M the prior year).
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✗ Cash flow backs up reported profitOperating cash flow $111,482.0M vs net income $112,010.0M.Why this matters: When cash generated exceeds reported earnings, profits are high-quality (not propped up by accruals or one-time items).
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✓ Return on assets improvingReturn on assets 31.2% vs 25.7% a year ago.
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✓ Debt load (vs assets)Long-term debt is 25.2% of assets vs 26.5% a year ago ($90,678.0M now).
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✓ Short-term liquidity (current ratio)Current ratio 0.89x vs 0.87x a year ago — below 1.0, a caution flag.
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✓ Share count (dilution)Share count declined 2.6% (15,408.1M → 15,004.7M year-over-year), so the no-dilution check passed. (This 1-year change differs from the ~4%/yr multi-year buyback CAGR the DCF cites.)
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✓ Pricing power (gross margin)Gross margin 46.9% vs 46.2% a year ago.
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✓ Sales per asset (asset turnover)Asset turnover 1.16x vs 1.07x a year ago.
Missing data is never counted as a pass or a fail — it's shown as n/a and excluded from the denominator. Each check compares the company against its own prior year.
What if you assume different inputs?
Here's where we land — and what happens if you change the assumptions. Drag the sliders to set your own Discount RateDiscount Rate — The annual return you demand for taking single-stock risk instead of buying a safe Treasury or index fund.
Why it matters: Higher discount rate = stricter valuation (a stock has to produce more cash to be worth holding). Lower = more generous.
Reference: 8–12% is standard · 9–10% matches S&P 500 historical return · Below 7% is illogical for single-stock risk
Full explanation → (the annual return you demand for single-stock risk) and terminal growth; the value updates live so you can see whether the stock looks cheaper or richer. The discount rate starts at 10.2%, the figure our model used for AAPL. Open Advanced to also change beta, growth and the rate path.
Note: at default inputs this calculator mirrors the headline model's three-scenario weighting (conservative/base/optimistic, 40/35/25), so its opening value should land close to the headline intrinsic value of $115.28. A small gap is rounding; a large one would be a data problem — and we check for it below.
10.2% — beta-based (CAPM), from this stock's BetaBeta — How much the stock moves when the overall market moves. 1.0 = moves with the market; 1.5 = moves 50% more than the market.
Why it matters: Higher beta = more volatile = should demand higher discount rate. Low beta stocks (utilities, consumer staples) move less.
Reference: Most stocks 0.5–1.5 · Defensives ~0.3 · High-vol tech ~1.5–2.0
Full explanation → of 1.03. The safe Treasury rate plus a premium scaled by how much more (or less) volatile the stock is than the market.
8.5% — sector/quality tier. A simpler hurdle set by industry and business durability: lower for stable, wide-moat companies; higher for speculative or micro-caps.
The headline value and this calculator start at 10.2% — the beta-based rate. Drag the slider to the other rate to see the full range.
+165.4%
At the default assumptions the flat path lands near our published value of $115.28. Move any slider to recompute it with your own.
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⚙ Advanced — tinker with every input (beta, growth, rate path, margin → full intrinsic value)
AAPL is deeply overvalued, trading at a +171.1% premium to the model's intrinsic valueIntrinsic Value — Our DCF model's estimate of what each share is mathematically worth based on projected cash flows.
Why it matters: Compare to current price. Below IV = potentially undervalued. Above IV = priced for growth that must actually happen.
Reference: Model-derived; quality depends on data and assumptions.
Full explanation → of $115.28. The market is paying up for Apple's expanding gross margin (41.8% to 46.9%) and consistent profitability, reflected in its 4/5 franchise/durability score. However, the model implies a growth rate of 25.2% which is significantly higher than its historical revenue growth of 3.3%/yr. The #1 quantifiable risk is the market's expectation of 25.2% implied growth, far exceeding its historical 3.3%/yr revenue growth.
As of 2 months ago
Anatomy of a share
What you're buying per share. Bars are at the same scale so you can see the relative size of revenue, costs, cash flow, and debt — not just read them in a table.
What's free cash flow / what do these mean?
Revenue per share — how much the business earns from customers, divided by the number of shares outstanding. Top of the income statement.
Earnings per share — profit left after operating costs, interest, and taxes, per share. Two versions appear on this page and are not interchangeable: GAAP diluted EPS uses the company's weighted-average diluted share count during the reporting period (this is the "earnings" in "price-to-earnings"); net income per current share divides annual net income by today's share count. They differ whenever the share count has changed.
Owner-earnings free cash flow per share — the cash the business produces for shareholders. Savng's owner-earnings FCF subtracts capital expenditures and stock-based compensation from operating cash flow (SBC is a real dilution cost even though it's non-cash). This is deliberately more conservative than "standard" FCF, which subtracts only capital expenditures — so our figure is lower than the headline FCF you'll see elsewhere. FCF funds dividends, buybacks, debt repayment, and acquisitions; a company can report positive earnings yet negative FCF.
Debt per share — total interest-bearing borrowings divided by shares. High debt-per-share next to thin FCF-per-share is a fragility signal.
What you actually need to decide
Every stock price is a disagreement. Here's the single thing that must go right for the bulls, the single thing that breaks the thesis, and the concrete signposts to watch so you can update your view as real results arrive.
- Acceleration in reported revenue growth rates
- Improvement in the current ratio above 1.0
- Expansion of gross margin beyond 46.9%
The trend, in plain numbers (2024 → 2025)
Straight from the financial statements — no model, no opinion. For a small or unprofitable company, the direction of these numbers usually tells you more than any single valuation.
- Revenue grew +6% to $416.16B.
- Gross margin improved to 47% (+1 pts).
- Net income grew +19% to $112.01B.
- Free cash flow fell to $85.90B.
Management & Leadership
Tim Cook has served as CEO of Apple Inc. since 2011, succeeding co-founder Steve Jobs. He has overseen significant growth in services and international markets. Arthur D. Levinson is the current Chairman.
What They Make
Apple Inc. designs, manufactures, and markets smartphones, personal computers, tablets, wearables, and accessories worldwide. It also sells related services, primarily to consumers and businesses.
End Markets
Revenue Drivers
Why Is It Priced Like This?
Why Customers Pay
The market prices AAPL at a premium of +171.1%, likely due to its expanding gross margin from 41.8% to 46.9% and its consistent profitability (positive net income for 5/5 years). These health signals suggest a high-quality business that investors are willing to pay a premium for, despite the model implying a growth rate of 25.2% against historical revenue growth of 3.3%/yr.
Three Scenarios, Weighted
| Scenario | IV | vs Price | Weight |
|---|---|---|---|
| Conservative | $97.60 | -68.1% | 40% |
| Base | $117.26 | -61.7% | 35% |
| Optimistic | $140.78 | -54.0% | 25% |
| Weighted | $115.28 | -62.3% | 100% |
What has to be true (historical comparison)
To justify today's price, AAPL's owner-earnings cash flow must grow to roughly 3.1× its current level over 5 years. If profit margins and share count stay roughly constant, that is equivalent to about the same multiple of revenue. Each card below is a real company that grew revenue at a comparable magnitude — possibly in a different industry; the point is the growth magnitude required and its historical base rate, not that AAPL resembles these businesses. The green/amber line shows whether that company cleared or fell short of the bar, and the tag on the right shows how it actually fared afterward (succeeded, faded, or wiped out).
A GPU company priced for gaming. The data-center business was 6% of revenue. Ten years later the data-center business is 80% of revenue and the company 200x'd.
Picks-and-shovels for the internet. Real business, real profits, but priced at 200x earnings. Took 20+ years to make a new all-time high. Revenue grew only 4x in 20 years.
Lost $720M on $1.6B revenue. The market priced in dominance of online retail. Took 9 years for the share price to make a new high but ultimately compounded 170x in revenue.
Anchors are hand-curated 10-K snapshots. We surface the three whose 5-year revenue growth most-closely brackets the rate required to justify the current price. Source: SEC EDGAR.
Business Model & Valuation
How They Make Money
The company engages in significant share buybacks, retiring 2.9% of its shares per year, which boosts per-share growth.
Free Cash Flow DCF Medium Strong franchise
Standard FCF DCF: positive free cash flow in a sector suited for cash-flow-based valuation. High P/FCF (53x) - market pricing significant growth. Extended fade horizon (5→7 years)
Show advanced inputs
| RevenueGrowth | 3.3% |
| EpsGrowth | 7.4% |
| HistoricalFcfGrowth | 0.3% |
| SectorDefault | 12.0% |
| BestEstimate | 5.9% |
| Method | blend(70% revenue_cagr, 30% sector)+buyback(2.9%) |
| GrowthBasis | total |
What this model does NOT do: this is a consolidated owner-earnings FCF model. Standalone segment assumptions: none. It does not project product, services and recurring/cloud lines independently; their combined effect is embedded in the historical revenue and cash-flow trend the model extrapolates. The calculator above can only approximate a segment's impact through the single consolidated growth rate — it cannot model any one line separately. For a true segment-level view, build a separate model from the company's segment disclosures.
Maturity & Competitive Position
Moat Signals
Revenue has been growing at 3.3%/yr over the last four years, from $365,817M to $416,161M.
Geography & Markets
Apple is headquartered in the US and operates globally, with significant sales across North America, Europe, and Asia, particularly China. Specific geographic mix percentages are not available in the current data.
Geographic Risks
Market Signals
These are timing signals, not value signals — they describe the stock's recent price behavior, not what the business is worth. Use them for the "the thesis looks good, but is now the moment?" question. Each tile below explains what it's saying.
Why it matters: Short-term contrarian indicator. Extreme readings often precede mean reversion, though not always.
Reference: 30–70 normal · >70 overbought · <30 oversold
Full explanation → (14)79.8OverboughtBought up hard recently — stretched; pullbacks are common from here.
Why it matters: When the fast line crosses above the slow line, short-term momentum is turning up; below, turning down. A timing cue, not a value signal.
Reference: Line above signal = bullish momentum · below = bearish
Full explanation →BullishLine above signalThe fast trend is above the slow trend — short-term momentum is currently upward.
Technicals describe price, not the business. A great company can have a "bearish" tape (a buying chance) and a weak one a "bullish" tape (a trap). Pair these with the valuation and health sections above.
QUALITY
Data Quality & Risk Flags (1 notes — click to expand/collapse)
Guardrail Notes (1)
- Per-share growth boosted by buybacks: the company is retiring 2.9% of its shares per year, which adds directly to per-share growth on top of business growth. Final per-share growth used by the model: 8.8%/yr.
FINANCIALS
Financial Statements (5-year tables — click to expand)
From Apple Inc.'s SEC filings (EDGAR).
Income (5yr)
| Year | Revenue | Net Income | EPS |
|---|---|---|---|
| 2025 | 416.2B | 112.0B | $7.46 |
| 2024 | 391.0B | 93.7B | $6.08 |
| 2023 | 383.3B | 97.0B | $6.13 |
| 2022 | 394.3B | 99.8B | $6.11 |
| 2021 | 365.8B | 94.7B | $5.61 |
Cash Flow (5yr)
| Year | Operating CF | CapEx | − SBC & adj. | Free Cash Flow |
|---|---|---|---|---|
| 2025 | 111.5B | 12.7B | 12.9B | 85.9B |
| 2024 | 118.3B | 9.4B | 11.7B | 97.1B |
| 2023 | 110.5B | 11.0B | 10.8B | 88.8B |
| 2022 | 122.2B | 10.7B | 9.0B | 102.4B |
| 2021 | 104.0B | 11.1B | 7.9B | 85.0B |
How we define FCF: operating cash flow − capital expenditure − stock-based compensation (owner-earnings basis — SBC is a real cost to shareholders even though it's non-cash). Latest year: 111.5B − 12.7B − 12.9B (SBC & adj.) = 85.9B. This is the same owner-earnings FCF definition the valuation model uses.
Balance Sheet
| Total Assets | 359.2B |
| Total Liabilities | 285.5B |
| Equity | 73.7B |
| Total Debt | 90.7B |
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