Apple Inc (AAPL)
Stock Analysis Report
Stock Journey
Key Positives and Key Risks
Pros
- Strong revenue growth of 16.6% year-over-year, demonstrating robust demand.
- High operating cash flow of $140.2 billion TTM, supporting capital returns and investments.
- Market capitalization of $4.58 trillion, reflecting dominant industry positioning.
Cons
- Elevated valuation with a trailing P/E of 37.58 and P/B ratio of 42.81, indicating limited margin of safety.
- Debt-to-equity ratio of 79.5%, which is relatively high compared to some peers.
- Stock priced at an 18.3% premium over calculated fair value, raising valuation concerns.
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 within the consumer electronics sector. The company designs, manufactures, and markets a broad portfolio of products including the iPhone, Mac computers, iPad tablets, wearables like Apple Watch and AirPods, and various services such as the App Store and Apple Music. Apple’s integrated ecosystem and strong brand position it as a dominant player in the technology industry, serving individual consumers, businesses, and government clients worldwide.
Financially, Apple reported trailing twelve months (TTM) revenue of approximately $451.4 billion with a gross margin of 49.3%, an operating margin of 32.3%, and a net profit margin of 27.2%. The company’s return on equity (ROE) stands at 141.5%, reflecting highly efficient use of shareholder capital, while return on assets (ROA) is 26.2%, indicating strong asset utilization. Operating cash flow reached $140.2 billion TTM, with free cash flow of $101.1 billion, underscoring robust cash generation capabilities.
From a valuation perspective, Apple’s trailing price-to-earnings (P/E) ratio is 37.58, with a forward P/E of 32.35 and a price-to-book (P/B) ratio of 42.81, indicating a premium valuation relative to book value. The enterprise value to EBITDA ratio is 28.64, suggesting the market prices Apple at a high multiple of earnings before interest, taxes, depreciation, and amortization. The stock trades near its 52-week high of $315, currently priced at $312.07, reflecting a 35.4% increase over the past year and an 18.3% premium over its calculated fair value.
Apple’s strengths include its massive market capitalization of $4.58 trillion, strong cash flow generation, and leadership in innovation and product ecosystem integration. Key risks involve regulatory scrutiny, competitive pressures in the technology sector, and supply chain challenges. Recent strategic actions include new product launches such as the iPhone 17 series, M4-powered iPad Air, and MacBook Neo, alongside a leadership transition with Tim Cook moving to Executive Chairman and John Ternus assuming the CEO role.
Technically, Apple’s stock maintains an upward trend, trading above its 50-day and 200-day moving averages, with momentum indicators signaling strength across multiple timeframes. Recent news highlights record quarterly revenues and earnings, though valuation concerns persist due to the stock’s premium pricing. Overall, the data suggests a market environment where cautious observation and monitoring of valuation and growth metrics are prudent.
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 globally, driven by continuous innovation and increasing digital adoption. Market size is expanding rapidly, fueled by consumer demand for smartphones, computing devices, and cloud services. Leading players include Apple, Microsoft, Google, and Samsung, which dominate through extensive product ecosystems and global reach.
Within the consumer electronics industry, trends emphasize integration of advanced technologies such as AI, 5G connectivity, and augmented reality, enhancing user experience and device capabilities. Competitive dynamics are shaped by high R&D costs and strong brand loyalty, creating significant barriers to entry for new entrants. Companies like Apple maintain a competitive edge through proprietary software, design innovation, and a robust supply chain network.
Regulatory scrutiny in the technology sector is intensifying, focusing on data privacy, antitrust concerns, and cybersecurity standards. Governments worldwide are implementing stricter regulations to protect consumer data and ensure fair competition, impacting operational practices and product development. Compliance with these evolving regulations is critical for sustaining market access and avoiding legal penalties.
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 | $4.58T | 37.58 | 42.81 | 28.64 | 32.69 |
| Sony Group Corporation | $127.44B | 20.16 | 2.50 | -0.01 | 10.43 |
Comparison Analysis: Apple Inc. significantly surpasses its peer Sony Group Corporation in market capitalization, trading at $4.58 trillion compared to Sony’s $127.44 billion. Apple’s valuation multiples, including a P/E ratio of 37.58 and P/B ratio of 42.81, are substantially higher than Sony’s 20.16 and 2.50 respectively, reflecting a premium pricing driven by stronger profitability and growth prospects. Apple’s EV/EBITDA of 28.64 contrasts with Sony’s negative figure, indicating more consistent earnings before non-cash charges. The company’s return on equity of 1.41% also exceeds Sony’s 0.12%, underscoring superior capital efficiency. Overall, Apple exhibits dominant financial metrics and market presence relative to its regional industry 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 a sustained uptrend, with price action showing higher highs and higher lows over recent months.
- Key support levels are identified near $270 and $260, while resistance is observed around the 52-week high near $315.
- The stock trades above its 10-day, 50-day ($272.88), and 200-day ($262.40) moving averages, indicating bullish momentum across short and long-term periods.
- Momentum indicators show the Relative Strength Index (RSI) near overbought levels, MACD remains positive with a bullish crossover, and Stochastic oscillators confirm upward momentum.
- Multi-timeframe analysis reveals consistent strength on daily, weekly, and monthly charts, supporting the prevailing upward trend.
- Potential scenarios include continuation of the rally if support holds or a consolidation phase near resistance levels before the next directional move.
Trending News
1. Headline: Apple @ Work: How Apple Business solved the shadow IT problem of Apple Maps Connect - 9to5Mac
Summary: For years, employees managed Apple Maps location data using personal iCloud accounts. With the new Apple Business platform, IT gains control.
Sentiment: neutral
2. Headline: Apple Inc (AAPL) Shares Fall 0.2% -- What GF Score of 95 Tells Investors
Summary: According to the GF Value™, Apple Inc AAPL is currently overvalued, with a price of $312.06 compared to its calculated fair value of $263.69. This discrepancy suggests that the stock is priced at an 18.3% premium, indicating a lack of margin of safety for potential investors. The GF Valuation label classifies the stock as "Modestly Overvalued," which raises concerns about the sustainability of its current price level in the event of market corrections or adverse news...
Sentiment: negative
3. Headline: Apple director Arthur Levinson sells $15.55m in shares By Investing.com
Summary: Additionally, 56,000 shares are held indirectly by his spouse. For deeper insights into Apple’s valuation and performance, InvestingPro offers access to over 20 additional ProTips and comprehensive Pro Research Reports covering 1,400+ US stocks. In other recent news, Apple Inc.
Sentiment: neutral
4. Headline: Apple director Levinson sells 50,000 shares at $311 | AAPL Insider Trading
Summary: Apple Inc. director Arthur D. Levinson reported several changes in his Apple shareholdings. On May 27, 2026, he sold 50,000 shares of common stock in an open-market transaction at a weighted average price of $311.02 per share, with individual trades executed between $310.76 and $311.42.
Sentiment: neutral
5. Headline: Apple Inc. stock (US0378331005): Shares hover near record levels ahead of valuation focus
Summary: Apple Inc. shares on the Nasdaq remain close to their 52-week highs as investors weigh strong recent
Sentiment: positive
Powered by Brave
Recent Updates
News Summary
As of 2026-05-30. Apple Inc. reported record-breaking quarterly revenues and earnings across multiple recent quarters, with the March 2026 quarter generating $111.18 billion in revenue, a 17% year-over-year increase, and net income of $29.6 billion. The iPhone 17 lineup and Services segment drove significant growth, with Services achieving all-time revenue highs. The company announced a leadership transition with Tim Cook moving to Executive Chairman and John Ternus becoming CEO. Additionally, Apple declared a 4% dividend increase and authorized a $100 billion share repurchase program, reflecting strong capital return policies. New product launches including the iPhone 17e, M4-powered iPad Air, and MacBook Neo have been well received, supporting continued market strength.
News Sentiment
The overall sentiment from recent updates is predominantly positive, driven by record financial performance, strong product demand, and strategic leadership changes. Positive earnings surprises and robust cash flow generation underpin confidence, while dividend increases and share buybacks highlight shareholder value focus. Neutral tones arise from insider share sales and ongoing regulatory and market uncertainties. The balanced sentiment reflects a company maintaining growth momentum amid a premium valuation environment.
Source List
- https://www.stocktitan.net/sec-filings/AAPL/form-4-apple-inc-insider-trading-activity-bce41fe739e5.html
Analytical Overview
Analysis Summary
Apple’s valuation metrics, including a trailing P/E of 37.58 and forward P/E of 32.35, exceed the industry average of 37.58, reflecting a premium valuation justified by its market leadership and growth prospects. The company’s revenue growth rate of 16.6% year-over-year and strong operating cash flow of $140.2 billion demonstrate a robust growth trajectory supported by diversified product and service offerings. Financial health is solid, with a manageable debt-to-equity ratio of 79.5% and substantial free cash flow of $101.1 billion, enabling capital returns and investments. Sector-specific challenges include supply chain constraints and competitive pressures, while opportunities arise from expanding services and new product innovations. Market positioning and competitive advantages remain strong, supported by a loyal customer base and integrated ecosystem.
Overall Business and Market Assessment
Supporting Factors: Key supporting factors include Apple’s record revenue and earnings growth, strong cash flow generation, and strategic leadership transition aimed at sustaining innovation. Risks to monitor involve the elevated valuation multiples and potential supply chain disruptions impacting margins. The appropriate investment timeframe is medium to long-term, given the company’s established market position and ongoing product development. Overall, Apple presents a balanced profile with strengths in financial performance and innovation tempered by valuation considerations and sector risks.
Risk Factors: No data
SWOT Analysis
Strengths
- Market leadership with a diversified product and services ecosystem.
- Strong profitability with gross margin near 49.3% and net margin above 27%.
- Robust cash flow generation exceeding $140 billion annually.
- High return on equity at 141.5%, indicating efficient capital use.
Weaknesses
- Premium valuation metrics with P/B ratio over 42, limiting margin of safety.
- Relatively high debt-to-equity ratio of 79.5% compared to peers.
- Dependence on iPhone revenue for a significant portion of sales.
- Limited insider ownership at approximately 1.63%, potentially reducing alignment.
Opportunities
- Expansion of services segment with record revenue growth.
- New product launches including iPhone 17e and M4-powered devices.
- Growth potential in emerging markets and enterprise solutions.
- Share repurchase programs enhancing shareholder returns.
Threats
- Regulatory scrutiny and antitrust investigations in multiple jurisdictions.
- Intense competition from other technology and consumer electronics firms.
- Supply chain constraints and rising component costs.
- Market volatility impacting premium valuation sustainability.
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.