One-glance verdict
Overvalued
$171.47 our estimate vs market $348.22
103% above our estimate, beyond the bull case
Fundamentals snapshot
Apple Inc.
AAPL · NMS · Technology · Consumer Electronics
Current price
$348.22
52-week range
$243.42 - $348.36
Market cap
$5.08T
Balance sheet
Healthy
33.83x Strong cushion
Net cash $0.00. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
1 Risk
3 rewards · 1 risks
- Reward Revenue grew 12.2% last year.
- Reward Free cash flow was positive in 10/10 years.
- Reward Dividend yield is 0.3% with 40-year payout history.
- Risk Stock trades 29.9% above its 5-year average P/E.
What this company does
Apple Inc.
Apple sells popular high-end electronics like the iPhone, which is its biggest moneymaker. The company also earns a significant and growing income from its services like the App Store and Apple TV+, creating a powerful ecosystem (a network of devices and services designed to work together, making it hard for customers to switch). This is important because services provide more predictable recurring revenue (money that comes in regularly, like a subscription) compared to one-time hardware sales.
How the company got here
Apple was started in a garage in 1976 by Steve Jobs and Steve Wozniak to sell a personal computer they built. After success with the Apple II, the company introduced the Macintosh in 1984, which popularized the idea of using a mouse and on-screen icons. Following a period of struggle in the 1990s, Steve Jobs returned to the company and launched a string of hit products, starting with the colorful iMac in 1998 and the iPod music player in 2001. The biggest turning point was the launch of the iPhone in 2007, which transformed the company and the entire mobile phone industry.
What it actually does
Apple designs and sells popular consumer electronics and provides related software and services. Most people know Apple for its hardware products, which include the iPhone smartphone, the Mac line of computers, the iPad tablet, and wearables like the Apple Watch and AirPods. The company also runs the digital stores where users buy apps, music, and movies for these devices. In addition, Apple offers a growing number of subscription services, such as cloud storage and streaming entertainment.
iPhone
This is Apple's most important business, making up about half of the company's total sales. The iPhone is a line of high-end smartphones that Apple updates with new models every year. Customers buy the phones from Apple directly or from cellular carriers and other retailers. The iPhone is the main gateway for customers into Apple's other products and services, making it the anchor of the company's entire business.
Services
This is Apple's second-largest and fastest-growing segment, representing over a fifth of the company's revenue (the total money a company brings in from sales). This business includes the fees Apple collects from the App Store, subscriptions like Apple Music, Apple TV+, and iCloud storage, as well as AppleCare warranties and payment services like Apple Pay. These services create a steady, recurring stream of income and help keep customers loyal to Apple's hardware.
Wearables, Home, and Accessories
This category includes a range of popular devices that extend the Apple experience beyond the phone and computer. It features the Apple Watch, which has health and fitness tracking capabilities, and AirPods wireless headphones. The segment also includes Beats headphones, the HomePod smart speaker, and Apple TV streaming devices. This part of the business is a significant and growing contributor to Apple's overall sales.
Mac
The Mac is Apple's line of personal computers, including the MacBook laptops and iMac desktop computers. These products are known for their distinct design, ease of use, and strong performance, especially since Apple started designing its own M-series computer chips. While no longer the biggest part of the company, the Mac business remains a substantial source of revenue and is popular with creative professionals, students, and software developers.
iPad
The iPad is Apple's line of tablet computers, which are designed to be a bridge between a smartphone and a laptop. Customers use iPads for a wide range of activities, from watching videos and playing games to professional creative work and educational tasks. Although it's the smallest of Apple's major product categories by sales, the iPad business still generates tens of billions of dollars in revenue for the company.
What management is betting on now
Apple is heavily focused on growing its high-margin Services business to make its income more consistent and less dependent on iPhone sales cycles. The company is also making a major push into artificial intelligence, aiming to embed its own 'Apple Intelligence' across all its devices with a focus on user privacy. Additionally, Apple sees significant future opportunities in health technology, using the Apple Watch and other wearables to monitor well-being and provide health alerts. Finally, the company is exploring new product categories, such as the Vision Pro for spatial computing, to find its next major source of growth.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q4
$23.90B
FY2025 Q1
$27.00B
FY2025 Q2
$20.88B
FY2025 Q3
$24.41B
FY2025 Q4
$26.49B
FY2026 Q1
$51.55B
FY2026 Q2
$26.73B
FY2026 Q3
$31.91B
Revenue
$109.42B
Net income
$29.79B
Diluted EPS
2.02
Operating cash flow
$34.37B
Free cash flow
$31.91B
Fetching…
Sources
Revenue
$111.18B
Net income
$29.58B
Diluted EPS
2.01
Operating cash flow
$28.70B
Free cash flow
$26.73B
Fetching…
Sources
Revenue
$143.76B
Net income
$42.10B
Diluted EPS
2.84
Operating cash flow
$53.92B
Free cash flow
$51.55B
Fetching…
Sources
Revenue
$102.47B
Net income
$27.47B
Diluted EPS
1.84
Operating cash flow
$29.73B
Free cash flow
$26.49B
Fetching…
Sources
Revenue
$94.04B
Net income
$23.43B
Diluted EPS
1.57
Operating cash flow
$27.87B
Free cash flow
$24.41B
Fetching…
Sources
Revenue
$95.36B
Net income
$24.78B
Diluted EPS
1.65
Operating cash flow
$23.95B
Free cash flow
$20.88B
Fetching…
Sources
Revenue
$124.30B
Net income
$36.33B
Diluted EPS
2.40
Operating cash flow
$29.93B
Free cash flow
$27.00B
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Sources
Revenue
$94.93B
Net income
$14.74B
Diluted EPS
0.97
Operating cash flow
$26.81B
Free cash flow
$23.90B
Fetching…
Sources
Is it cheap or expensive?
Fair value $171.47 vs current price $348.22
Our most-likely fair value is $171.47 a share — about 50.8% below today's price of $348.22, so the stock currently looks expensive (overvalued).
Is it drowning in debt?
Healthy
Net cash $0 - more cash than debt. Interest coverage 33.8x.
Net debt
$0.00
Interest coverage
33.83x
Apple Inc.'s profit covers its interest bill about 33.8 times over. which is weaker than most peers shown here.
Healthy
Worse cushion
Baseline
Better cushion
AAPL
BASELINE
Apple Inc.
Total debt — Interest coverage 33.83x This is the baseline the peer rows are being compared against.
Total debt $128.81B Interest coverage 50.88x +50% vs AAPL Carries about 1.5x more debt cushion than AAPL.
Total debt $120.79B Interest coverage 175.32x +418% vs AAPL Carries about 5.2x more debt cushion than AAPL.
Total debt $251.64B Interest coverage 35.17x +4% vs AAPL Has roughly the same debt cushion as AAPL.
Total debt $112.32B Interest coverage 71.48x +111% vs AAPL Carries about 2.1x more debt cushion than AAPL.
Total debt $38.86B Interest coverage 503.42x +1,388% vs AAPL Carries about 14.9x more debt cushion than AAPL.
What you should know
The case for and against AAPL
3 Rewards
1 Risk
Rewards
-
Revenue grew 12.2% last year.
-
Free cash flow was positive in 10/10 years.
-
Dividend yield is 0.3% with 40-year payout history.
Risks
-
Stock trades 29.9% above its 5-year average P/E.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
39.93x
Forward P/E
36.38x
P/B
47.31x
P/S
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EV/EBITDA
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PEG ratio
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Profitability
How much profit each dollar creates
Gross margin
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Operating margin
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Net margin
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ROE
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ROA
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Health
Liquidity and balance-sheet strength
Debt / equity
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Current ratio
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Quick ratio
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Total debt
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Total cash
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Growth
How the business has been compounding
Revenue TTM
$466.82B
Revenue 5Y CAGR
3.3%
EPS TTM
7.46
EPS 5Y CAGR
6.9%
Cash flow
How much cash the business throws off
Operating CF TTM
$146.72B
Free CF TTM
$98.77B
FCF margin
21.2%
Dividend
Shareholder payout
Yield
0.3%
Payout ratio
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Last ex-div date
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