One-glance verdict
Overvalued
$156.16 our estimate vs market $321.66
Wall Street consensus: $318.25 (103.8% higher than our fair-value estimate)
106% above our estimate, beyond the bull case
Fundamentals snapshot
Apple Inc.
AAPL · NMS · Technology · Consumer Electronics
Current price
$321.66
52-week range
$201.50 - $334.99
Market cap
$4.72T
Balance sheet
Healthy
33.83x Strong cushion
Net debt $16.20B. 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 8.5% last year.
- Reward Returns 141.5% on equity, ahead of 83% of its peers.
- Reward Free cash flow was positive in 10/10 years.
- Risk Stock trades 26.8% above its 5-year average P/E.
What this company does
Apple Inc.
Apple is a technology company best known for selling the iPhone, which is its biggest source of sales. The company also earns a significant and growing amount of money from its Services business, which includes App Store fees and monthly subscriptions that provide reliable recurring revenue (income that comes in consistently at regular intervals). This strategy of selling hardware to bring users into its high-profit services platform is central to its business model.
How the company got here
Apple was started in a garage in 1976 by Steve Jobs and Steve Wozniak, who created one of the first personal computers, the Apple I. The company's big break came with the Apple II, which was very successful and helped make personal computing popular. After some difficult years and Steve Jobs' temporary departure, he returned in 1997 and led a major turnaround, introducing iconic products like the iMac, iPod, and iTunes. The launch of the iPhone in 2007 completely changed the mobile phone industry and set Apple on the path to becoming one of the world's most valuable companies.
What it actually does
Apple is a global company that designs and sells popular consumer electronics and software. 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. In addition to these devices, the company also makes money from a growing list of online services. These services include the App Store, where you can buy and download applications, as well as subscription offerings like Apple Music for streaming songs and Apple TV+ for original shows and movies.
iPhone
The iPhone is Apple's most important product, making up about half of the company's total sales. It's a line of high-end smartphones that are known for their design, ease of use, and the powerful iOS operating system that runs them. Customers buy the physical phone and often use it to access Apple's other services, like the App Store and Apple Pay (a service that lets you make payments with your phone). The iPhone is a massive business that drives a huge portion of the company's success.
Services
This is Apple's second-largest and fastest-growing business segment. It includes a wide variety of digital offerings that people pay for on a recurring basis, creating what's known as recurring revenue (predictable income that is expected to continue in the future). This includes fees from the App Store, subscriptions to Apple Music, Apple TV+, and iCloud for online storage, as well as transaction fees from Apple Pay. Because these are digital, they tend to have very high profit margins (the percentage of revenue left after the costs of providing the service are paid).
Wearables, Home, and Accessories
This category includes a popular collection of smaller hardware devices that work with Apple's main products. The biggest sellers in this group are the Apple Watch, a smartwatch that tracks fitness and displays notifications, and AirPods, which are wireless headphones. It also includes the HomePod smart speaker and other accessories. This segment has become a significant source of revenue (the total amount of money a company generates from its sales) for the company, larger than the Mac or iPad businesses.
Mac
The Mac is Apple's line of personal computers, including the MacBook laptops and iMac desktop computers. This was Apple's original business, and it's known for its distinct macOS operating system, strong performance, and premium design. While it represents a smaller portion of revenue compared to the iPhone and Services, the Mac has a very loyal customer base, especially among creative professionals and students.
iPad
The iPad is Apple's line of tablet computers, which created a new category of device between a smartphone and a laptop when it was first introduced. People use iPads for a variety of tasks, from watching videos and playing games to drawing and doing work. While it's the smallest of Apple's major product segments by sales, it still generates billions of dollars in revenue each year.
What management is betting on now
Apple is heavily focused on growing its Services business to make its income more consistent and less dependent on new hardware sales. The company is also investing heavily in new technologies like artificial intelligence (AI) and augmented reality (AR), which blends the digital and physical worlds, as seen with its Vision Pro headset. Another key priority is controlling the core technologies inside its products, such as designing its own computer chips (like the M-series chips in Macs) to improve performance and efficiency. Finally, Apple continues to emphasize user privacy and environmental sustainability as core parts of its brand identity.
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 Q3
$26.71B
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
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
Revenue
$85.78B
Net income
$21.45B
Diluted EPS
1.40
Operating cash flow
$28.86B
Free cash flow
$26.71B
Fetching…
Sources
Is it cheap or expensive?
Fair value $156.16 vs current price $321.66
Wall Street consensus is the average analyst price target: $318.25 (103.8% higher than our fair-value estimate).
Our most-likely fair value is $156.16 a share — about 51.5% below today's price of $321.66, so the stock currently looks expensive (overvalued).
Is it drowning in debt?
Healthy
Net debt $16.2B. Interest coverage 33.8x.
Net debt
$16.20B
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 $84.71B Interest coverage 33.83x This is the baseline the peer rows are being compared against.
Total debt $125.43B Interest coverage 53.89x +59% vs AAPL Carries about 1.6x more debt cushion than AAPL.
Total debt $112.76B Interest coverage 175.32x +418% vs AAPL Carries about 5.2x more debt cushion than AAPL.
Total debt $235.54B Interest coverage 35.17x +4% vs AAPL Has roughly the same debt cushion as AAPL.
Total debt $12.81B Interest coverage 503.42x +1,388% vs AAPL Carries about 14.9x more debt cushion than AAPL.
Total debt $86.77B Interest coverage 71.48x +111% vs AAPL Carries about 2.1x more debt cushion than AAPL.
What you should know
The case for and against AAPL
3 Rewards
1 Risk
Rewards
-
Revenue grew 8.5% last year.
-
Returns 141.5% on equity, ahead of 83% of its peers.
-
Free cash flow was positive in 10/10 years.
Risks
-
Stock trades 26.8% 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)
38.99x
Forward P/E
33.36x
P/B
44.31x
P/S
10.46x
EV/EBITDA
30.02x
PEG ratio
2.64x
Profitability
How much profit each dollar creates
Gross margin
47.9%
Operating margin
32.3%
Net margin
27.2%
ROE
141.5%
ROA
26.2%
Health
Liquidity and balance-sheet strength
Debt / equity
0.80x
Current ratio
1.07x
Quick ratio
0.91x
Total debt
$84.71B
Total cash
$68.51B
Growth
How the business has been compounding
Revenue TTM
$451.44B
Revenue 5Y CAGR
3.3%
EPS TTM
8.25
EPS 5Y CAGR
6.9%
Cash flow
How much cash the business throws off
Operating CF TTM
$140.22B
Free CF TTM
$98.77B
FCF margin
21.9%
Dividend
Shareholder payout
Yield
0.3%
Payout ratio
12.6%
Last ex-div date
2026-05-11