AAPL Valuation

Apple Inc

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224.900

-1.11(-0.491%)1D

Overview
Forecast
Valuation
Earnings

AAPL Relative Valuation

AAPL's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, AAPL is overvalued; if below, it's undervalued.

Historical Valuation

Apple Inc (AAPL) is now in the Fair zone, suggesting that its current forward PE ratio of 29.40 is considered Fairly compared with the five-year average of 27.02. The fair price of Apple Inc (AAPL) is between 197.22 to 233.94 according to relative valuation methord.

Relative Value

Fair Zone

197.22-233.94

Current Price：226.01

Fair

29.25

Trailing

Forward

23.17

EV/EBITDA

Apple Inc. (AAPL) has a current EV/EBITDA of 23.17. The 5-year average EV/EBITDA is 20.58. The thresholds are as follows: Strongly Undervalued below 15.89, Undervalued between 15.89 and 18.23, Fairly Valued between 22.92 and 18.23, Overvalued between 22.92 and 25.27, and Strongly Overvalued above 25.27. The current Forward EV/EBITDA of 23.17 falls within the Overvalued range.

24.55

EV/EBIT

Apple Inc. (AAPL) has a current EV/EBIT of 24.55. The 5-year average EV/EBIT is 22.51. The thresholds are as follows: Strongly Undervalued below 17.46, Undervalued between 17.46 and 19.99, Fairly Valued between 25.04 and 19.99, Overvalued between 25.04 and 27.56, and Strongly Overvalued above 27.56. The current Forward EV/EBIT of 24.55 falls within the Historic Trend Line -Fairly Valued range.

7.84

Apple Inc. (AAPL) has a current PS of 7.84. The 5-year average PS is 6.89. The thresholds are as follows: Strongly Undervalued below 5.07, Undervalued between 5.07 and 5.98, Fairly Valued between 7.79 and 5.98, Overvalued between 7.79 and 8.70, and Strongly Overvalued above 8.70. The current Forward PS of 7.84 falls within the Overvalued range.

23.53

P/OCF

Apple Inc. (AAPL) has a current P/OCF of 23.53. The 5-year average P/OCF is 22.54. The thresholds are as follows: Strongly Undervalued below 17.30, Undervalued between 17.30 and 19.92, Fairly Valued between 25.17 and 19.92, Overvalued between 25.17 and 27.79, and Strongly Overvalued above 27.79. The current Forward P/OCF of 23.53 falls within the Historic Trend Line -Fairly Valued range.

27.79

P/FCF

Apple Inc. (AAPL) has a current P/FCF of 27.79. The 5-year average P/FCF is 25.56. The thresholds are as follows: Strongly Undervalued below 19.97, Undervalued between 19.97 and 22.77, Fairly Valued between 28.36 and 22.77, Overvalued between 28.36 and 31.15, and Strongly Overvalued above 31.15. The current Forward P/FCF of 27.79 falls within the Historic Trend Line -Fairly Valued range.

Apple Inc (AAPL) has a current Price-to-Book (P/B) ratio of 51.01. Compared to its 3-year average P/B ratio of 46.53 , the current P/B ratio is approximately 9.63% higher. Relative to its 5-year average P/B ratio of 42.21, the current P/B ratio is about 20.85% higher. Apple Inc (AAPL) has a Forward Free Cash Flow (FCF) yield of approximately 2.81%. Compared to its 3-year average FCF yield of 3.57%, the current FCF yield is approximately -21.28% lower. Relative to its 5-year average FCF yield of 3.70% , the current FCF yield is about -23.96% lower.

50.76

P/B

Median3y

46.53

Median5y

42.21

2.87

FCF Yield

Median3y

3.57

Median5y

3.70

Competitors Valuation Multiple

The average P/S ratio for AAPL's competitors is 5.81, providing a benchmark for relative valuation. Apple Inc Corp (AAPL) exhibits a P/S ratio of 7.84, which is 34.85% above the industry average. Given its robust revenue growth of 9.63%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

Telefonaktiebolaget LM Ericsson

Motorola Solutions Inc

Performance Decomposition

Market capitalization of AAPL decreased by 1.57% over the past 1 year. The primary factor behind the change was an increase in Revenue Growth from 85.78B to 94.04B.

The secondary factor is the Margin Expansion, contributed -0.32%to the performance.

Overall, the performance of AAPL in the past 1 year is driven by Revenue Growth. Which is more sustainable.

9.63%

85.78B → 94.04B

Revenue Growth

-0.32%

25.00 → 24.92

Margin Expansion

-10.88%

38.39 → 34.21

P/E Change

-1.57%