Now trading at a price of $146.56, Apple has moved -0.58% so far today. In contrast, the S&P 500 index moved -0.08%. Read below for a basic value analysis of Apple.
Apple shares moved -9.01% over the last 52 weeks, with a high of $178.53 and a low of $123.98. During this time, the stock basically tracked the performance of the S&P 500. As of January 2022, the company's 50-day average price is $141.0.
Apple Inc. is an American multinational technology company that specializes in consumer electronics, computer software, and online services. The large-cap Technology company is based in Cupertino, CA. Apple has returned a 0.62% dividend yield over the last 12 months.
Solid EPS Growth With Low Leverage Levels:
| 2019-09-30 | 2020-09-30 | 2021-09-30 | 2022-09-30 | |
|---|---|---|---|---|
| Revenue (MM) | $256,598 | $271,642 | $363,172 | $391,397 |
| Revenue Growth | n/a | 5.86% | 33.7% | 7.77% |
| Gross Margins | 38.34% | 38.64% | 42.08% | 43.63% |
| Gross Margins Growth | n/a | 0.78% | 8.9% | 3.68% |
| Operating Margins | 24.91% | 24.4% | 30.0% | 30.52% |
| Operating Margins Growth | n/a | -2.05% | 22.95% | 1.73% |
| Earnings Per Share | $12.44 | $3.38 | $5.76 | $6.26 |
| EPS Growth | n/a | -72.83% | 70.41% | 8.68% |
| Diluted Shares (MM) | 4,443 | 16,977 | 16,427 | 15,943 |
| Free Cash Flow (MM) | $58,896 | $73,365 | $92,953 | $111,443 |
| FCF Growth | n/a | 24.57% | 26.7% | 19.89% |
| Capital Expenditures (MM) | $10,495 | $7,309 | $11,085 | $10,708 |
| Net Debt / EBITDA | 0.91 | 1.15 | 0.73 | 0.72 |
Apple Is Reasonably Priced:
Compared to the Technology sector's average of 27.16, Apple has a trailing twelve month P/E ratio of 24.88 and, according to its EPS guidance of 6.58, an expected P/E ratio of 22.27.
Apple's P/B ratio is 44.63 compared to its sector average of 6.23. The company is likely overvalued in terms of its net asset value. The company's shares are currently trading 474.75% above their fair value as expressed by Benjamin Graham's formula:
√(22.5 * 5-year average EPS * book value per share) = √(22.5 * 8.07 * 3.581) = $25.5
Apple's elevated P/B ratio notwithstanding, the company's strong cash flows, decent earnings multiple, and healthy debt levels factor towards it being fairly valued.
Apple Is the Subject of Mixed Market Indicators:
38 analysts are following Apple and have set target prices ranging from $118.0 to $195.0 per share. On average, they have given the company a rating of buy. At the current price of $146.56, AAPL is trading -12.87% away from its average analyst target price of $168.21 per share, implying an analyst consensus of some upside potential for the stock.
