AAPL Investors - Our Quick Report For You.

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.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.