Apple Inc. (AAPL)
OvervaluedFundamental
68
Price
$347.73
Market Cap
$5.01T
Part 1 · What the company is worth
Overview
Apple designs consumer hardware — iPhone, Mac, iPad, Watch and accessories — that it has manufactured by contract partners, mostly in Asia, and sells worldwide through its own and third-party stores. Around that hardware it has built a services layer: the App Store, subscriptions such as iCloud and Apple Music, Apple Pay, advertising and licensing fees. It designs the chips and the software tightly integrated with each device rather than owning the factories that build them.
How it makes money
Apple books revenue when it sells hardware, through its own stores, online and through outside retailers that carry the bulk of unit volume, and separately earns recurring or one-time fees from its services layer: App Store commissions, subscriptions, licensing income such as the fee Google pays to be the default search engine, and AppleCare. Hardware still drives most of the total, but services carry far higher margins and grow more steadily because they don't depend on a new-device purchase.
Revenue by segment
Apple's flagship smartphone line and by far its largest source of revenue.
App Store, subscriptions, Apple Pay, advertising, licensing and AppleCare — Apple's highest-margin business.
Apple Watch, AirPods, HomePod and related accessories.
Apple's personal computer line, from MacBook laptops to desktop iMac and Mac Studio models.
Apple's tablet line, spanning entry-level to Pro models.
Competitive moat
Switching costs · WideCustomers who buy into iPhone, Mac, Watch and Apple's services face real friction leaving: repurchasing paid apps, losing iMessage's blue-bubble integration, family sharing set up across devices, and years of habit. That lock-in supports both pricing power on hardware and high attach rates for subscriptions, and it is the main reason Apple can charge more than most competitors for comparable specifications.
What drives demand
Moderately cyclicalBuying a new iPhone or Mac is discretionary and tends to slow when consumers feel less confident about spending, but the installed base keeps replacing devices on a multi-year cycle regardless of the broader economy, and services revenue keeps growing steadily even in years when hardware sales stall. Replacement cycles have lengthened as devices last longer, softening the swings somewhat.
Key risks
- iPhone concentration — iPhone alone supplies about half of total revenue, so a weak launch cycle or slower upgrades in that one product line moves the whole company's results.
- Supply chain concentration in Asia — Apple relies on a relatively concentrated set of manufacturing partners and suppliers, mostly in Asia, for final assembly and key components, exposing it to tariffs, trade disputes and disruption at a single site.
- Regulatory pressure on the App Store — Antitrust action and digital-markets rules in the US, EU and elsewhere are forcing changes to App Store fees and payment rules, threatening the margins that make services so profitable.
- Tariffs and China exposure — New US tariffs on imports from China and other manufacturing countries raise Apple's costs, which it may not be able to fully pass through to customers without hurting demand.
Customer concentration
Apple sells to hundreds of millions of individual consumers through its own and third-party retail channels; it does not disclose meaningful revenue concentration among individual customers because none is material.
The case for
Buyers argue that services now grow faster than hardware and carry much higher margins, that switching costs inside the Apple ecosystem keep users buying the next iPhone even as upgrade cycles lengthen, and that a fresh AI-driven upgrade wave could reaccelerate hardware sales.
The case against
Sellers worry that iPhone still supplies about half of revenue, so any stumble in that single product line moves the whole business, that regulators are chipping away at the App Store fees driving services profitability, and that tariffs on Chinese manufacturing raise costs Apple cannot fully offset.
Written by the editors, published on August 18, 2026
Direct competitors
Who this company fights with for the same customers
Generated with artificial intelligence on August 23, 2026, shared with all users
Xiaomi is the world's third-largest smartphone vendor and sells a full ecosystem of phones, tablets, wearables and connected home devices that targets Apple buyers in China, India and Europe at lower price points.
Microsoft competes with Apple for the same computer users through Windows and its Surface hardware, and for the same subscription spending in productivity software, cloud storage and gaming services.
Samsung is the other global volume leader in premium smartphones, tablets and smartwatches, selling to the same consumers through the same carrier and retail channels as the iPhone, iPad and Apple Watch.
Google competes with Apple on the mobile platform itself — Android against iOS, Play Store against the App Store, Pixel phones against the iPhone — and in the digital services and AI assistants sold on top of them.
Huawei is Apple's toughest rival in China, where its high-end smartphones, tablets and wearables built on its own HarmonyOS compete directly for premium buyers in Apple's largest international market.
Lenovo is the largest personal computer vendor worldwide and competes head-on with the Mac line for consumer, education and corporate laptop and desktop budgets.
Balance Sheet & Liquidity
Revenue
$466.82B
Trailing 12 months (through 6/27/2026)
Net Income
$128.93B
Trailing 12 months (through 6/27/2026)
Free Cash Flow
$98.77B
Total Equity
$73.73B
Total Liabilities
$285.51B
Current Ratio
1.00
Interest Coverage
-
Debt/EBITDA
0.58
Earnings Per Share
Revenue & Net Income
Free Cash Flow
Income Breakdown
Historical statement
Margins over time
Debt over time
How heavy the debt is
Growth grid
Growth — Revenue
Fair Value Estimation
Fair Value
$277.07
Current Price
$347.73
Margin of Safety
-25.5%
Fair Value Range
$202.62 - $351.51
Spread across the valuation methods used, not a statistically calibrated confidence interval.
Estimation Methods
Valuation Metrics
P/E Ratio
39.92
ROE
151.9%
P/B Ratio
47.20
P/FCF
37.13
Gross Margin
48.7%
ROIC
52.3%
Profitability Radar
Value Creation (Economic Moat)
ROIC outlierROIC
52.3%
WACC
10.4%
ROIC − WACC
+41.9 pp
ROIC exceeds the cost of capital — the company is creating value for shareholders.
Fundamental Analysis Criteria
Passed (18)
- EPS shows upward trend
- Price CAGR 27.82%
- ROIC 52.3%
- Gross margin 48.7%
- Debt/equity ratio
- Operating margin 33.2%
- Positive free cash flow
- CapEx intensity
- Current ratio
- Debt/EBITDA
- Return on tangible assets
- Low reliance on intangibles
- ROE 137.2%
- Revenue growth 5Y 8.7%
- Earnings quality (operating cash flow / net income) 1.14
- Share dilution -2.6%
- Net margin trend 27.6% vs 24.3%
- Piotroski F-Score 8/9
Failed (7)
- EPS CAGR 3.62%
- P/FCF 37.13
- P/B ratio 47.20
- Price below Graham Number
- DCF valuation (Overvalued)
- Earnings surprise, average 1.7%
- PEG ratio 2.17
Unavailable (2)
- Dividend payout –
- Interest coverage
Piotroski F-Score
Strong financial health
Earnings Quality
High quality: earnings backed by cash
Share Dilution
Buying back shares. Shareholder friendly
Institutional Holdings
Governance
Executive Team
| Name | Title | Age |
|---|---|---|
| Mr. Timothy D. Cook | Executive Chairman of the Board | 64 |
| Mr. Kevan Parekh | Senior VP & CFO | 53 |
| Mr. Sabih Khan | Senior VP & Chief Operating Officer | 58 |
| Ms. Deirdre O'Brien | Senior Vice President of Retail & People | 58 |
| Ms. Katherine L. Adams | Secretary | 61 |
| Mr. John Ternus | CEO & Director | 49 |
| Mr. Ben Borders | Principal Accounting Officer | 44 |
| Suhasini Chandramouli | Director of Investor Relations | - |
| Ms. Jennifer G. Newstead J.D. | Senior VP & General Counsel | 55 |
| Ms. Kristin Huguet Quayle | Vice President of Worldwide Communications | - |
Audit Risk
2
Board Risk
1
Compensation Risk
6
Shareholder Rights Risk
1
Documents
- View document
Annual Report (10-K)
A yearly overview of the business, its financial results, and the risks it faces.
Filed on 2025-10-31
- View document
Quarterly Report (10-Q)
A snapshot of financial performance for the most recent three-month period.
Filed on 2026-07-31
- View document
Current Report (8-K)
An announcement of a major event, such as a leadership change or big news.
Filed on 2026-07-30
via SEC EDGAR
Income History
via SEC EDGAR
Part 2 · The price and its context
This part shows how the price has behaved, not whether the company is worth owning. Inside: technical analysis, potential, historical drawdowns, gamma exposure.
Declared Strategy AI-generated summary
Apple designs, manufactures, and markets consumer electronic devices, including iPhone smartphones, Mac personal computers, iPad tablets, wearables like Apple Watch and AirPods, and spatial computing devices, alongside a wide portfolio of related services such as the App Store, cloud storage, Apple Pay, and digital content subscriptions. The company's core business strategy is to deliver fully integrated user experiences by designing nearly the entire solution in-house, including hardware, operating systems, application software, and connected services. To compete and grow in fast-changing global markets, Apple focuses on continuous innovation through sustained research and development, introducing regular product and technology upgrades, expanding its high-margin services offerings, fostering a rich ecosystem of third-party developers, and distributing products worldwide through both direct stores and carrier partners.
Source: 10-K filed on 2025-10-31
View filingMarket Reaction Profile
How much AAPL moves, measured on its daily prices.
More volatile than 28% of the tracked stocks (90-day volatility).
- Volatility 30d
- 15.1%
- Volatility 90d
- 27.9%
- Beta vs S&P 500 (1y)
- 0.58Correlation 0.31
- Max drawdown (12m)
- -13.8%
- ATR (14d, % of price)
- 1.85%
Earnings reactions
How AAPL moved around its past quarterly results.
Next earnings release
Nov 2, 2026 · In 9 days · Time not known
EPS estimate: 1.98Revenue estimate: $113.4B
What usually happens
- Over the last 12 releases the stock moved a median of 1.0% the next day, up or down.
- Next-day moves: up 4, down 8 (out of 12).
Release history
| Date | When | EPS est. | EPS actual | Surprise | Gap | 1 day | 5 days |
|---|---|---|---|---|---|---|---|
| Jul 30, 2026 | After the close | 1.93 | 1.91 | -0.9% | -8.6% | -7.4% | -6.3% |
| Apr 30, 2026 | After the close | 1.99 | 2.01 | +1.1% | +2.8% | +3.2% | +5.9% |
| Jan 29, 2026 | After the close | 2.73 | 2.84 | +4.2% | -1.2% | +0.5% | +6.8% |
| Oct 30, 2025 | After the close | 1.81 | 1.85 | +2.4% | +2.1% | -0.4% | -0.6% |
| Jul 31, 2025 | After the close | n/a | n/a | n/a | +1.6% | -2.5% | +6.0% |
| May 1, 2025 | After the close | n/a | n/a | n/a | -3.4% | -3.7% | -7.4% |
| Jan 30, 2025 | After the close | n/a | n/a | n/a | +4.0% | -0.7% | -1.8% |
| Oct 31, 2024 | After the close | n/a | n/a | n/a | -2.2% | -1.3% | +0.7% |
| Aug 1, 2024 | After the close | n/a | n/a | n/a | +0.4% | +0.7% | -2.3% |
| May 2, 2024 | After the close | n/a | n/a | n/a | +7.9% | +6.0% | +6.7% |
| Feb 1, 2024 | After the close | n/a | n/a | n/a | -3.7% | -0.5% | +0.8% |
| Nov 2, 2023 | After the close | n/a | n/a | n/a | -1.9% | -0.5% | +2.7% |
Release dates from SEC 8-K filings.
Updated 10/24/2026
Historical statistics for educational purposes only. They are not forecasts and not investment advice.
Price reaction to the news
Latest news on AAPL and what the price did next.
- 10/20/2026NegativePerché le azioni Apple sono in calo martedì?
- +1 day
- -1.3%
- +3 days
- +1.9%
- 10/19/2026NegativeAzioni Apple in rosso: perché questo analista prevede un calo della domanda di iPhone
Published while the US market was open: the move of that day cannot be split into before and after the news, so no figure is shown.
- 10/16/2026PositiveAzioni Apple in rialzo: i preordini di iPhone Duo esauriti in pochi minuti
Published while the US market was open: the move of that day cannot be split into before and after the news, so no figure is shown.
- 10/13/2026PositiveApple riconquista $5 trillion di market cap: cosa ha guidato il rally di martedì?
Published while the US market was open: the move of that day cannot be split into before and after the news, so no figure is shown.
- 10/10/2026NegativeA $100 price hike may be all it takes to scare off iPhone buyers in this economy, as Apple reportedly slashes orders
- +1 day
- +1.3%
- +3 days
- +3.0%
- 10/9/2026NegativeRassegna serale: petrolio in calo, Apple taglia la produzione di componenti per iPhone
- +1 day
- +1.3%
- +3 days
- +3.0%
- 10/8/2026PositiveHeadline no longer in the latest news feed
Published while the US market was open: the move of that day cannot be split into before and after the news, so no figure is shown.
- 10/1/2026NegativeHeadline no longer in the latest news feed
Published while the US market was open: the move of that day cannot be split into before and after the news, so no figure is shown.
- 9/30/2026PositiveHeadline no longer in the latest news feed
Published while the US market was open: the move of that day cannot be split into before and after the news, so no figure is shown.
- 9/30/2026NegativeHeadline no longer in the latest news feed
Published while the US market was open: the move of that day cannot be split into before and after the news, so no figure is shown.
Return of the stock minus return of SPY over the same days. A news item close to a price move did not necessarily cause it. Historical data for educational purposes only, not investment advice.
Latest News
Recent headlines for AAPL.
- 3d agoNEUTRALApple’s Cash Flow Machine Makes It Investors’ Favorite AI Hedge
Apple Inc. has emerged as a unique trading strategy, with its stock performance often inversely correlated to the broader AI sector's sentiment. While AI stocks experience volatility, Apple's stock tends to move in the opposite direction, presenting a hedge opportunity for investors. This counter-trend behavior suggests Apple's resilience or a different market dynamic at play, making it a reliable, albeit unconventional, trade amidst fluctuating AI market sentiment. Investors are observing this pattern for potential portfolio diversification and risk management.
- 4d agoNEGATIVEPerché le azioni Apple sono in calo martedì?
Apple shares (AAPL) experienced a pre-market decline of 1.08% on Tuesday, following a 0.15% drop on Monday. This pullback follows the company's market capitalization briefly surpassing $5 trillion last week. The downturn is attributed to renewed analyst concerns regarding the iPhone business, adding pressure to the stock. This sentiment extends to the broader tech sector, with semiconductor companies like Micron Technology, Intel, and AMD also facing selling pressure. Investors are reassessing the sustainability of Apple's recent rally and future growth prospects, particularly concerning iPhone sales.
- 5d agoNEGATIVEAzioni Apple in rosso: perché questo analista prevede un calo della domanda di iPhone
Apple shares dipped 0.54% following a KeyBanc survey indicating a potential decline in consumer intent to upgrade iPhones within the next 12 months. While initial interest in the iPhone 18 was slightly higher than for its predecessor (20% vs. 17% purchased/pre-ordered), only 41% of respondents plan to upgrade within a year, down from 48% in the prior survey. This suggests that elevated pricing and reduced carrier promotions could negatively impact iPhone sales, despite some consumer preference shifts. Investors should monitor these demand indicators closely.
- 8d agoPOSITIVEAzioni Apple in rialzo: i preordini di iPhone Duo esauriti in pochi minuti
Apple Inc. shares saw a modest increase, trading around $346.46, up approximately 1.3% as of 11:05 AM EST. This rise follows the rapid sell-out of pre-orders for its first foldable smartphone, the iPhone Duo, shortly after they became available on Friday. Delivery estimates for the new device have reportedly shifted from October 23 to late January, indicating that initial demand is outstripping available supply. This strong market reception for Apple's entry into the competitive foldable phone segment is a positive signal for investors, potentially driving further stock appreciation and validating the company's product innovation strategy.
- 11d agoPOSITIVEApple riconquista $5 trillion di market cap: cosa ha guidato il rally di martedì?
Apple Inc. shares surged to a record high on Tuesday, reclaiming a $5 trillion market capitalization. The rally was fueled by the unveiling of new smart home devices, including the HomeView hub, aimed at expanding the company's presence in the smart home market. The stock reached an intraday peak of $347.78 and was trading up approximately 1.5% mid-morning EST. This performance occurred while the broader market remained largely flat, underscoring strong investor confidence in Apple's product innovation and strategic expansion into new growth areas.
- 12d agoNEUTRALApple Needs Phones and Smart Homes to Revive Pricey Stock
Apple Inc. is launching new products and updates this week, aiming to revitalize its stock performance which has seen limited movement recently. Investors remain cautious, questioning whether these new offerings will provide a significant enough boost to justify the stock's premium valuation. The company's reliance on iPhone sales and the potential for smart home devices to drive future growth are key factors under scrutiny. The market is awaiting concrete evidence of increased demand and revenue generation from these initiatives to signal a clear upward trend.
- 14d agoNEGATIVEA $100 price hike may be all it takes to scare off iPhone buyers in this economy, as Apple reportedly slashes orders
Apple has reportedly slashed component orders for its latest Pro iPhones by at least 15% for October, according to suppliers. This comes amid an AI-driven memory chip shortage that is driving up smartphone prices. The price sensitivity of consumers in the current economic climate, coupled with rising costs, suggests a potential slowdown in demand for Apple's premium devices. Investors should monitor iPhone sales figures closely for signs of continued weakness.
- 15d agoNEGATIVERassegna serale: petrolio in calo, Apple taglia la produzione di componenti per iPhone
Apple Inc. shares experienced a downturn following a report indicating the company has requested suppliers to reduce component orders for its latest iPhone 18 Pro models. This news suggests a potential slowdown in demand or production adjustments for Apple's flagship product. Investors are closely watching these developments as they could impact future revenue streams and profitability. The broader market saw oil prices decline due to easing geopolitical tensions surrounding Iran, while US Treasury yields remained elevated and gold held steady above $4,100 per ounce ahead of key US inflation data.