Apple Inc (AAPL)
Stock Analysis Report
Stock Journey
Key Positives and Key Risks
Pros
- Strong free cash flow of $101.1 billion supports operational flexibility and shareholder returns.
- Robust revenue growth of 16.6% year-over-year indicates sustained demand and market expansion.
- Strategic $30 billion chip manufacturing deal with Broadcom enhances supply chain resilience and domestic production.
Cons
- High trailing P/E ratio of 37.32 and P/B ratio of 42.51 suggest premium valuation with limited margin for error.
- Ongoing legal dispute with OpenAI introduces uncertainty and potential costs related to intellectual property.
- Debt-to-equity ratio of 79.55% reflects moderate leverage, which could impact financial flexibility under adverse conditions.
Disclosure: This information is for general awareness and does not constitute investment advice
Report Summary
Apple Inc. is a leading global technology company listed on the NASDAQ exchange, operating primarily in the Consumer Electronics sector within the Technology industry. The company designs, manufactures, and markets a broad portfolio of products including iPhones, Macs, iPads, wearables, and accessories, alongside service platforms such as the App Store and Apple Music. Apple maintains a strong market position by integrating hardware, software, and services into cohesive ecosystems, serving individual consumers, businesses, and government sectors worldwide.
Financially, Apple reported trailing twelve months (TTM) revenue of approximately $451.4 billion with a gross margin of 49.27%, operating margin of 32.28%, and net profit margin of 27.15%, indicating robust profitability. The company’s return on equity (ROE) stands at 141.47%, and return on assets (ROA) at 26.23%, reflecting efficient use of capital and assets. Operating cash flow for the TTM period is $140.2 billion, with free cash flow of $101.1 billion, underscoring strong cash generation capabilities.
Valuation metrics show Apple’s trailing price-to-earnings (P/E) ratio at 37.32 and forward P/E at 32.12, with a price-to-book (P/B) ratio of 42.51 and enterprise value to EBITDA (EV/EBITDA) of 28.44. The market capitalization is approximately $4.53 trillion. The stock price currently trades near $315.33, close to its 52-week high of $317.40 and well above the 52-week low of $201.50, suggesting a strong price performance over the past year.
Apple’s notable strengths include its dominant market leadership, substantial free cash flow, and a relatively manageable debt level with a debt-to-equity ratio of 79.55%. Key risks involve regulatory challenges, intense competition in technology and AI sectors, and ongoing supply chain complexities. Recent strategic actions include a $30 billion multi-year chip manufacturing deal with Broadcom and legal action against OpenAI over alleged trade secret theft, reflecting active management of growth and intellectual property.
Technically, Apple’s stock is trading above its 50-day and 200-day moving averages, indicating an overall upward trend. Momentum indicators show mixed signals across timeframes, with some volatility noted in recent price action. The data suggests a market environment where accumulation and cautious monitoring may be appropriate, given the balance of strong fundamentals and sector-specific uncertainties.
Company and Industry Overview
Company Basics
Price Performance
Company Size
Shareholding Pattern
Sector and Industry Analysis
The technology sector, encompassing hardware, software, and services, remains one of the largest and fastest-growing global markets, driven by continuous innovation and digital transformation across industries. Major players include Apple, Microsoft, Google, and Amazon, which dominate through extensive product ecosystems and significant R&D investments. Market growth is propelled by increasing demand for consumer electronics, cloud computing, and mobile technologies, with the sector consistently outperforming broader economic trends.
Within the consumer electronics and smartphone industry, rapid innovation cycles and high consumer expectations define competitive dynamics. Key trends include the integration of artificial intelligence, enhanced connectivity through 5G, and a growing emphasis on sustainability and privacy features. Barriers to entry are substantial due to the need for advanced technology, brand loyalty, and extensive supply chain networks, positioning established firms like Apple advantageously in maintaining market share and driving premium pricing strategies.
Regulatory scrutiny in the technology sector is intensifying, focusing on data privacy, antitrust concerns, and environmental standards. Laws such as the GDPR in Europe and various U.S. state-level privacy regulations impact product design and data handling practices. Additionally, trade policies and export controls influence supply chain operations and global market access, requiring companies to adapt compliance frameworks while navigating evolving geopolitical tensions.
Note: Analysis synthesized from industry research, market reports, and regulatory filings. Information is subject to change based on market conditions.
Financial Ratios Dashboard
Illustrative Scenario Analysis
DCF Assumptions:
Method: Two-Stage EPS-Priority Model
Financials
Peer Analysis
| Company Name | Market Cap | P/E Ratio | P/B Ratio | EV/EBITDA | Price to CFO |
|---|---|---|---|---|---|
| Apple Inc. | $4.53T | 37.32 | 42.51 | 28.44 | 32.33 |
| Sony Group Corporation - Sponsored American Depositary Receipt | $122.45B | 19.61 | 2.46 | 0.01 | 10.13 |
Comparison Analysis: Apple Inc. exhibits significantly higher valuation multiples compared to its peer Sony Group Corporation, with a trailing P/E ratio of 37.32 versus Sony's 19.61 and a P/B ratio of 42.51 compared to Sony's 2.46. Apple's EV/EBITDA ratio of 28.44 also far exceeds Sony's 0.01, reflecting a premium valuation consistent with its market leadership and scale. However, Sony demonstrates a stronger return on equity at 12.34% compared to Apple's 1.41%, indicating relatively higher profitability efficiency. Apple's price to cash flow ratio is also higher, suggesting the market prices in substantial growth expectations relative to peers.
Financial Metrics Comparison with Peers
Financial Statements
Comprehensive financial data including income, balance sheet, and cash flow metrics
Income Statement
| fiscal_date | 2025-09-30 | 2024-09-30 | 2023-09-30 | 2022-09-30 | 2021-09-30 |
|---|---|---|---|---|---|
| Sales | 416.16B | 391.04B | 383.29B | 394.33B | 365.82B |
| Cost Of Goods | 220.96B | 210.35B | 214.14B | 223.55B | 212.98B |
| Gross Profit | 195.20B | 180.68B | 169.15B | 170.78B | 152.84B |
| Operating Expense Research And Development | 34.55B | 31.37B | 29.91B | 26.25B | 21.91B |
| Operating Expense Selling General And Administrative | 27.60B | 26.10B | 24.93B | 25.09B | 21.97B |
| Operating Income | 133.05B | 123.22B | 114.30B | 119.44B | 108.95B |
| Other Income Expense | -321.00M | 269.00M | -565.00M | -334.00M | 60.00M |
| Pretax Income | 132.73B | 123.48B | 113.74B | 119.10B | 109.21B |
| Income Tax | 20.72B | 29.75B | 16.74B | 19.30B | 14.53B |
| Net Income | 112.01B | 93.74B | 97.00B | 99.80B | 94.68B |
| Eps Basic | 7.49 | 6.11 | 6.16 | 6.15 | 5.67 |
| Eps Diluted | 7.46 | 6.08 | 6.13 | 6.11 | 5.61 |
| Basic Shares Outstanding | 14.95B | 15.34B | 15.74B | 16.22B | 16.70B |
| Diluted Shares Outstanding | 14.95B | 15.34B | 15.74B | 16.22B | 16.70B |
| Ebit | 133.05B | 123.22B | 114.30B | 119.44B | 111.85B |
| Ebitda | 144.75B | 134.66B | 125.82B | 130.54B | 123.14B |
| Net Income Continuous Operations | 112.01B | 93.74B | 97.00B | 99.80B | 94.68B |
| Non Operating Interest Income | N/A | N/A | 3.75B | 2.83B | 2.84B |
| Non Operating Interest Expense | N/A | N/A | 3.93B | 2.93B | 2.65B |
Data provided by Twelve Data
Balance Sheet
| fiscal_date | 2025-09-30 | 2024-09-30 | 2023-09-30 | 2022-09-30 | 2021-09-30 |
|---|---|---|---|---|---|
| Cash And Cash Equivalents | 35.93B | 29.94B | 29.96B | 23.65B | 34.94B |
| Accounts Receivable | 39.78B | 33.41B | 29.51B | 28.18B | 26.28B |
| Total Assets | 359.24B | 364.98B | 352.58B | 352.75B | 351.00B |
| Total Liabilities | 285.51B | 308.03B | 290.44B | 302.08B | 287.91B |
| Long Term Debt | 78.33B | 85.75B | 95.28B | 109.71B | 119.38B |
| Shareholders Equity | 73.73B | 56.95B | 62.15B | 50.67B | 63.09B |
Data provided by Twelve Data
Cash Flow Statement
| fiscal_date | 2025-09-30 | 2024-09-30 | 2023-09-30 | 2022-09-30 | 2021-09-30 |
|---|---|---|---|---|---|
| Operating Activities Net Income | 112.01B | 93.74B | 97.00B | 99.80B | 94.68B |
| Operating Activities Depreciation | 11.70B | 11.45B | 11.52B | 11.10B | 11.28B |
| Operating Activities Stock Based Compensation | 12.86B | 11.69B | 10.83B | 9.04B | 7.91B |
| Operating Activities Other Non Cash Items | -89.00M | -2.27B | -2.23B | 1.01B | -4.92B |
| Operating Activities Accounts Receivable | -7.03B | -5.14B | -417.00M | -9.34B | -14.03B |
| Operating Activities Accounts Payable | 902.00M | 6.02B | -1.89B | 9.45B | 12.33B |
| Operating Activities Other Assets Liabilities | -18.87B | 2.77B | -4.27B | 1.57B | -1.53B |
| Operating Activities Operating Cash Flow | 111.48B | 118.25B | 110.54B | 123.52B | 100.94B |
| Investing Activities Capital Expenditures | -12.71B | -9.45B | -10.96B | -10.71B | -11.09B |
| Investing Activities Purchase Of Investments | -24.41B | -48.66B | -29.51B | -76.92B | -109.56B |
| Investing Activities Sale Of Investments | 53.80B | 62.35B | 45.51B | 67.36B | 106.48B |
| Investing Activities Other Investing Activity | -1.48B | -1.31B | -1.34B | -2.09B | -385.00M |
| Investing Activities Investing Cash Flow | 15.20B | 2.94B | 3.71B | -22.66B | -14.58B |
| Financing Activities Long Term Debt Issuance | 4.48B | 0.00 | 5.23B | 5.46B | 20.39B |
| Financing Activities Long Term Debt Payments | -10.93B | -9.96B | -11.15B | -9.54B | -8.75B |
| Financing Activities Short Term Debt Issuance | -2.03B | 3.96B | -3.98B | 3.96B | 1.02B |
| Financing Activities Common Stock Repurchase | -90.71B | -94.95B | -77.55B | -89.40B | -85.97B |
| Financing Activities Common Dividends | -15.42B | -15.23B | -15.03B | -14.84B | -14.47B |
| Financing Activities Other Financing Charges | -6.07B | -5.80B | -6.01B | -6.38B | -5.58B |
| Financing Activities Financing Cash Flow | -120.69B | -121.98B | -108.49B | -110.75B | -92.25B |
| End Cash Position | 35.93B | 29.94B | 30.74B | 24.98B | 35.93B |
| Income Tax Paid | 43.37B | 26.10B | 18.68B | 19.57B | 25.39B |
| Free Cash Flow | 98.77B | 108.81B | 99.58B | 111.44B | 92.95B |
| Interest Paid | N/A | N/A | 3.80B | 2.87B | 2.69B |
| Operating Activities Deferred Taxes | N/A | N/A | N/A | 895.00M | -4.77B |
| Investing Activities Net Acquisitions | N/A | N/A | N/A | -306.00M | -33.00M |
| Financing Activities Common Stock Issuance | N/A | N/A | N/A | N/A | 1.10B |
Data provided by Twelve Data
Technical Analysis
Key Insights
- Apple's stock is currently in an upward trend, trading near its 52-week high with price action showing strength above key moving averages.
- Key support levels are identified near $290 and $270, while resistance is observed close to the recent high at $317.
- The stock price is above the 10-day, 50-day (around $293.52), and 200-day (around $270.69) moving averages, indicating positive momentum.
- Momentum indicators such as RSI are moderately high but not in overbought territory; MACD shows bullish crossover signals, while stochastic oscillators suggest some short-term volatility.
- Analysis across daily, weekly, and monthly timeframes confirms a consistent bullish trend with occasional consolidation phases.
- Potential market scenarios include continuation of the upward trend if support holds, or a correction if the price falls below the 50-day moving average.
Trending News
1. Headline: Apple sues OpenAI alleging trade secret theft, says scheme was 'at every level'
Summary: The two companies entered into a high-profile partnership in 2024 when ChatGPT was integrated into the iPhone's operating system.
Sentiment: neutral
2. Headline: How Apple stock rode the AI rollercoaster to record highs in 1 chart
Summary: That's when it unveiled a suite ... and the stock ran up into the event. The on-screen demos looked cool, but the reality in the months that followed was ugly . The rushed and botched release of Apple Intelligence made clear that Apple's AI strategy wasn't fully fleshed out. The iPhone maker was still trying to figure it all out, while others — including startups like ...
Sentiment: positive
3. Headline: Apple (AAPL) Lands Broadcom Chip Deal, Is The Stock Fully Priced? - Simply Wall St News
Summary: Apple (AAPL) just committed to a multi year chip partnership with Broadcom worth more than US$30 billion. The deal is centered on over 15 billion US made components and a US$1.5 billion Colorado plant expansion. See our latest analysis for Apple. Apple’s multi year chip deal with Broadcom ...
Sentiment: positive
4. Headline: Broadcom Stock Investors Just Got Incredible News from Apple CEO Tim Cook | The Motley Fool
Summary: Jul 10, 2026 •By Selena Maranjian3 ... Now -- Including Broadcom (AVGO) Stock · Jul 10, 2026 •By Keithen Drury3 Hypergrowth Tech Stocks to Buy With $3,000 Right Now · Jul 9, 2026 •By Daniel SparksBroadcom Is Less Than 5% From the $2 Trillion Club -- and Apple Just Committed $30 Billion for More Chips · Jul 9, 2026 •By Rick OrfordMassive News: Broadcom ...
Sentiment: positive
5. Headline: My Bold Prediction for This Stock Through 2030 - 24/7 Wall St.
Summary: Can Apple ride its AI infrastructure pivot to $500 per share by 2030? Here is what the math says. Shares are up 6.46% over the past week and 49.82% over the past year. The stock trades 1% from its 52-week high of $317.40, and CFO Kevan Parekh flagged that memory costs will drive an increasing ...
Sentiment: positive
Powered by Brave
Recent Updates
News Summary
As of 2026-07-10. Apple announced a $30 billion multi-year deal with Broadcom to design chips manufactured in the United States, aiming to diversify its supply chain and support domestic chip production. This agreement is expected to produce over 15 billion chips and includes a $1.5 billion expansion of a Colorado manufacturing plant. The deal aligns with Apple's strategy to mitigate tariff-related cost increases and strengthen its component sourcing. Additionally, Apple has initiated legal proceedings against OpenAI, alleging trade secret theft following a prior partnership involving AI integration into Apple devices. This lawsuit underscores competitive tensions in the AI sector and Apple's efforts to protect its intellectual property.
News Sentiment
The overall sentiment from recent updates is predominantly positive, driven by the substantial Broadcom chip manufacturing deal which signals strong strategic positioning and commitment to domestic production. The legal action against OpenAI introduces a neutral tone reflecting ongoing competitive and regulatory challenges in the AI space. Positive market reactions to the chip deal and AI strategy pivot are tempered by execution risks and legal uncertainties, resulting in a balanced but optimistic outlook based on the latest developments.
Source List
Analytical Overview
Analysis Summary
Apple's valuation metrics, including a trailing P/E of 37.32 and forward P/E of 32.12, are elevated compared to industry averages, reflecting premium pricing consistent with its market leadership. The company's revenue growth rate of 16.6% and strong operating cash flow trends indicate a positive growth trajectory supported by robust demand and innovation. Financial health is solid with a manageable debt-to-equity ratio of 79.55% and substantial free cash flow exceeding $101 billion, providing flexibility for investments and shareholder returns. Sector-specific opportunities include expansion in AI technologies and domestic chip manufacturing, while challenges encompass regulatory scrutiny and competitive pressures in the technology landscape. Market positioning and competitive advantages are strong, supported by a diversified product portfolio and ecosystem integration.
Overall Business and Market Assessment
Supporting Factors: Apple's significant free cash flow generation, strong revenue growth, and strategic partnerships such as the Broadcom chip deal enhancing supply chain resilience
Risk Factors: ongoing legal disputes with AI competitors and potential regulatory challenges that could impact operations or costs
SWOT Analysis
Strengths
- Market leadership in consumer electronics and technology integration.
- Robust free cash flow exceeding $101 billion annually.
- Strong brand recognition and diversified product ecosystem.
- Strategic partnerships enhancing supply chain and innovation.
Weaknesses
- High valuation multiples relative to industry peers.
- Dependence on a limited number of flagship products for revenue.
- Moderate debt-to-equity ratio indicating leverage usage.
- Legal exposure from ongoing intellectual property disputes.
Opportunities
- Expansion in AI infrastructure and related technologies.
- Increased domestic manufacturing through multi-billion dollar chip deals.
- Growth in service platforms and subscription-based revenues.
- Potential to leverage ecosystem for new product innovations.
Threats
- Regulatory scrutiny and antitrust investigations.
- Intense competition from global technology firms and startups.
- Supply chain disruptions impacting component availability.
- Legal challenges related to intellectual property rights.
Company Description
Apple Inc. designs, manufactures, and markets a wide range of technology products worldwide. These include the iPhone, a line of smartphones; Mac, a line of personal computers; iPad, a line of multi-purpose tablets; and wearables, home, and accessories such as AirPods, Apple Vision Pro, Apple TV, Apple Watch, Beats products, HomePod, as well as Apple branded and third-party accessories. The company operates service platforms including the App Store, Apple Music, and subscription models that provide curated content, cloud services, and digital offerings. Apple Inc. serves individual consumers, businesses, and government sectors through online stores, retail outlets, and partnerships with cellular carriers and resellers. Its products span the information technology sector, impacting mobile communication, personal computing, entertainment, and health monitoring. Founded in 1976 and headquartered in Cupertino, California, Apple Inc. plays a pivotal role in the global technology market by integrating hardware, software, and services into seamless ecosystems.