One-glance verdict
Overvalued
$133.24 our estimate vs market $319.97
Wall Street consensus: $323.86 (143.1% higher than our fair-value estimate)
140% above our estimate, beyond the bull case
Fundamentals snapshot
Apple Inc.
AAPL · NMS · Technology · Consumer Electronics
Current price
$319.97
52-week range
$225.95 - $344.57
Market cap
$4.67T
Balance sheet
Healthy
33.83x Strong cushion
Net debt $21.94B. 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 Returns 148.8% on equity, ahead of 83% of its peers.
- Reward Free cash flow was positive in 10/10 years.
- Risk Stock trades 19.1% above its 5-year average P/E.
What this company does
Apple Inc.
Apple is known for making popular electronics like the iPhone, which is its biggest seller, along with Mac computers and iPads. The company also earns a significant and growing portion of its money from services like the App Store and Apple Music, which provide steady, recurring revenue (income that comes in regularly, like a subscription). This combination of hardware and services creates a powerful ecosystem (a family of interconnected products that work together), encouraging customers to stay loyal and continue buying Apple products.
How the company got here
Apple was started in a garage in 1976 by Steve Jobs and Steve Wozniak, who released one of the first personal computers, the Apple II. After a period of struggle and low sales in the 1990s, Steve Jobs returned to the company and began a remarkable turnaround. The launch of the iMac in 1998, the iPod in 2001, and especially the iPhone in 2007 transformed Apple from a computer company into a global leader in consumer electronics. The introduction of the App Store in 2008 created a new economy for software developers and locked customers into Apple's ecosystem (a network of devices and software that work together seamlessly).
What it actually does
Apple designs and sells a wide range of popular consumer electronics that you would recognize in a store, including smartphones, computers, tablets, and smartwatches. It also operates its own digital stores for apps, music, and movies, and offers a growing number of subscription services for things like data storage and streaming entertainment. The company is known for its focus on high-quality design, ease of use, and creating products and services that work together in a connected system. This encourages customers who buy one Apple product to continue buying others.
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 are known for their powerful cameras, intuitive operating system, and sleek design. Customers pay for the physical phone, and many also spend money on apps, accessories, and services through the device. The consistent popularity of new iPhone models each year is the main driver of Apple's financial success.
Services
This is Apple's second-largest and fastest-growing business segment. Instead of selling a physical product, this division makes money from ongoing subscriptions and fees. This includes revenue (the total money a company brings in from sales) from the App Store, where Apple takes a commission (a percentage of the sale) from apps and in-app purchases, as well as subscription services like iCloud for storage, Apple Music for streaming audio, and Apple TV+ for original shows and movies.
Wearables, Home, and Accessories
This segment includes a variety of popular electronic devices that are not phones or computers. The main products are AirPods (wireless earbuds) and the Apple Watch (a smartwatch that tracks fitness and displays notifications). It also includes other accessories like Beats headphones and the HomePod smart speaker. This part of the business represents a smaller but still significant portion of Apple's overall sales.
Mac
This is Apple's original line of personal computers, including the MacBook laptops and the iMac desktop computers. Known for their distinct design and user-friendly macOS operating system, Macs are particularly popular with creative professionals and students. While no longer the biggest part of the company, the Mac business still generates tens of billions of dollars in sales each year.
iPad
The iPad is Apple's line of tablet computers, which are like a larger version of an iPhone but with capabilities closer to a laptop. People use them for everything from watching videos and playing games to drawing and doing schoolwork. The iPad was a revolutionary product when it first launched, creating a new category of consumer electronics. It remains a major business for Apple, though it brings in less revenue than the iPhone or Services segments.
What management is betting on now
Apple is heavily focused on growing its Services business, aiming to earn more recurring revenue from its massive base of over two billion active devices. The company is also making significant investments in artificial intelligence, which it calls "Apple Intelligence," to make its devices smarter and more helpful. Another key priority is developing its own custom silicon chips to power its devices, giving it greater control over performance and features. Finally, Apple is working to make its supply chain (the network of companies that provide parts and assemble its products) more diverse and resilient.
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
Fetching…
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 $133.24 vs current price $319.97
Wall Street consensus is the average analyst price target: $323.86 (143.1% higher than our fair-value estimate).
Our most-likely fair value is $133.24 a share — about 58.4% below today's price of $319.97, so the stock currently looks expensive (overvalued).
Is it drowning in debt?
Healthy
Net debt $21.9B. Interest coverage 33.8x.
Net debt
$21.94B
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 $84.34B 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.
-
Returns 148.8% on equity, ahead of 83% of its peers.
-
Free cash flow was positive in 10/10 years.
Risks
-
Stock trades 19.1% 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)
36.61x
Forward P/E
33.42x
P/B
43.47x
P/S
10.00x
EV/EBITDA
27.93x
PEG ratio
2.52x
Profitability
How much profit each dollar creates
Gross margin
48.7%
Operating margin
32.6%
Net margin
27.6%
ROE
148.8%
ROA
27.1%
Health
Liquidity and balance-sheet strength
Debt / equity
0.78x
Current ratio
1.00x
Quick ratio
0.81x
Total debt
$84.34B
Total cash
$62.40B
Growth
How the business has been compounding
Revenue TTM
$466.82B
Revenue 5Y CAGR
3.3%
EPS TTM
8.74
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
12.0%
Last ex-div date
2026-08-10