Consumer Electronics · NASDAQ
Current Price
$270.17
Intrinsic Value
Use the calculator below to estimate
Run a full DCF analysis on Apple Inc. with auto-filled fundamentals, adjustable assumptions, and sensitivity heatmap.
Apple Inc. designs, manufactures, and markets smartphones, personal computers, tablets, wearables, and accessories worldwide. The company offers iPhone, a line of smartphones; Mac, a line of personal computers; iPad, a line of multi-purpose tablets; and wearables, home, and accessories comprising AirPods, Apple TV, Apple Watch, Beats products, and HomePod. It also provides AppleCare support and cloud services; and operates various platforms, including the App Store that allow customers to discover and download applications and digital content, such as books, music, video, games, and podcasts, as well as advertising services include third-party licensing arrangements and its own advertising platforms. In addition, the company offers various subscription-based services, such as Apple Arcade, a game subscription service; Apple Fitness+, a personalized fitness service; Apple Music, which offers users a curated listening experience with on-demand radio stations; Apple News+, a subscription news and magazine service; Apple TV+, which offers exclusive original content; Apple Card, a co-branded credit card; and Apple Pay, a cashless payment service, as well as licenses its intellectual property. The company serves consumers, and small and mid-sized businesses; and the education, enterprise, and government markets. It distributes third-party applications for its products through the App Store. The company also sells its products through its retail and online stores, and direct sales force; and third-party cellular network carriers, wholesalers, retailers, and resellers. Apple Inc. was founded in 1976 and is headquartered in Cupertino, California.
ROIC (TTM)
51.0%
ROE (TTM)
159.9%
FCF Yield
3.11%
Based on trailing twelve-month data, AAPL shows a free cash flow per share of N/A and a ROIC of 51.0%, key inputs for stock valuation using the DCF method. The P/FCF ratio of N/A and FCF yield of 3.11% are important context metrics when evaluating AAPL's stock valuation relative to peers.
The intrinsic value of AAPL depends on assumptions about future growth rate, discount rate (WACC), and terminal value. A DCF model discounts projected free cash flows back to present value — small changes in WACC can shift the estimate by 20% or more, which is why sensitivity analysis is essential.
Whether AAPL is undervalued depends on comparing the DCF-derived intrinsic value to the current market price of $270.17. A positive margin of safety (intrinsic value above market price) suggests potential undervaluation, but the degree of confidence depends on the reliability of your growth and discount rate assumptions.
To perform a DCF valuation on Apple Inc.: (1) Start with the trailing free cash flow per share as the base, (2) project future FCF growth over 5-10 years based on Consumer Electronics industry trends and company fundamentals, (3) apply a discount rate (WACC) reflecting AAPL's risk profile, and (4) add a terminal value for cash flows beyond the projection period.
DCF (Discounted Cash Flow) estimates what a company is worth today based on its future cash generation. For Apple Inc., this means projecting how much free cash flow the Consumer Electronics will produce over the next 5-10 years, then discounting those amounts to today's dollars. AAPL's ROIC of 51.0% indicates strong capital efficiency, which supports higher growth assumptions in the DCF model.
WACC (Weighted Average Cost of Capital) is the discount rate in a DCF model — it reflects the minimum return investors require. For AAPL, the capital structure and equity risk premium determine WACC. A 1% increase in WACC typically reduces the intrinsic value by 10-15%.
