APPLE INC (AAPL) Fundamental Analysis & Valuation
NASDAQ:AAPL • US0378331005
260.81 USD
-0.02 (-0.01%)
At close: Mar 11, 2026
259.86 USD
-0.95 (-0.36%)
Pre-Market: 3/12/2026, 5:17:02 AM
This AAPL fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
AAPL gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 37 industry peers in the Technology Hardware, Storage & Peripherals industry. AAPL scores excellent points on both the profitability and health parts. This is a solid base for a good stock. AAPL has a correct valuation and a medium growth rate. These ratings would make AAPL suitable for quality investing!
1. AAPL Profitability Analysis
1.1 Basic Checks
- In the past year AAPL was profitable.
- In the past year AAPL had a positive cash flow from operations.
- Each year in the past 5 years AAPL has been profitable.
- Each year in the past 5 years AAPL had a positive operating cash flow.
1.2 Ratios
- AAPL has a better Return On Assets (31.05%) than 100.00% of its industry peers.
- Looking at the Return On Equity, with a value of 133.55%, AAPL belongs to the top of the industry, outperforming 97.30% of the companies in the same industry.
- With an excellent Return On Invested Capital value of 54.20%, AAPL belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
- AAPL had an Average Return On Invested Capital over the past 3 years of 50.93%. This is significantly above the industry average of 15.92%.
- The 3 year average ROIC (50.93%) for AAPL is below the current ROIC(54.20%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 31.05% | ||
| ROE | 133.55% | ||
| ROIC | 54.2% |
ROA(3y)28.12%
ROA(5y)27.93%
ROE(3y)157.53%
ROE(5y)163.92%
ROIC(3y)50.93%
ROIC(5y)48.1%
1.3 Margins
- The Profit Margin of AAPL (27.04%) is better than 97.30% of its industry peers.
- AAPL's Profit Margin has improved in the last couple of years.
- AAPL has a better Operating Margin (32.38%) than 100.00% of its industry peers.
- In the last couple of years the Operating Margin of AAPL has grown nicely.
- AAPL's Gross Margin of 47.33% is amongst the best of the industry. AAPL outperforms 86.49% of its industry peers.
- AAPL's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 32.38% | ||
| PM (TTM) | 27.04% | ||
| GM | 47.33% |
OM growth 3Y1.82%
OM growth 5Y5.77%
PM growth 3Y2.07%
PM growth 5Y5.18%
GM growth 3Y2.69%
GM growth 5Y4.17%
2. AAPL Health Analysis
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so AAPL is creating value.
- Compared to 1 year ago, AAPL has less shares outstanding
- The number of shares outstanding for AAPL has been reduced compared to 5 years ago.
- AAPL has a better debt/assets ratio than last year.
2.2 Solvency
- AAPL has an Altman-Z score of 10.26. This indicates that AAPL is financially healthy and has little risk of bankruptcy at the moment.
- With an excellent Altman-Z score value of 10.26, AAPL belongs to the best of the industry, outperforming 94.59% of the companies in the same industry.
- The Debt to FCF ratio of AAPL is 0.73, which is an excellent value as it means it would take AAPL, only 0.73 years of fcf income to pay off all of its debts.
- With an excellent Debt to FCF ratio value of 0.73, AAPL belongs to the best of the industry, outperforming 89.19% of the companies in the same industry.
- A Debt/Equity ratio of 0.89 indicates that AAPL is somewhat dependend on debt financing.
- AAPL's Debt to Equity ratio of 0.89 is in line compared to the rest of the industry. AAPL outperforms 40.54% of its industry peers.
- Although AAPL's pure debt/equity ratio does not look good, it has limited outstanding debt compared to the Free Cash Flow. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.89 | ||
| Debt/FCF | 0.73 | ||
| Altman-Z | 10.26 |
ROIC/WACC6.25
WACC8.67%
2.3 Liquidity
- AAPL has a Current Ratio of 0.97. This is a bad value and indicates that AAPL is not financially healthy enough and could expect problems in meeting its short term obligations.
- AAPL's Current ratio of 0.97 is on the low side compared to the rest of the industry. AAPL is outperformed by 70.27% of its industry peers.
- A Quick Ratio of 0.94 indicates that AAPL may have some problems paying its short term obligations.
- AAPL has a Quick ratio of 0.94. This is comparable to the rest of the industry: AAPL outperforms 54.05% of its industry peers.
- The current and quick ratio evaluation for AAPL is rather negative, while it does have excellent solvency and profitability. These ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.97 | ||
| Quick Ratio | 0.94 |
3. AAPL Growth Analysis
3.1 Past
- AAPL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 13.49%, which is quite good.
- The Earnings Per Share has been growing by 18.04% on average over the past years. This is quite good.
- The Revenue has grown by 10.07% in the past year. This is quite good.
- AAPL shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.68% yearly.
EPS 1Y (TTM)13.49%
EPS 3Y6.93%
EPS 5Y18.04%
EPS Q2Q%18.33%
Revenue 1Y (TTM)10.07%
Revenue growth 3Y1.81%
Revenue growth 5Y8.68%
Sales Q2Q%15.65%
3.2 Future
- AAPL is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 14.30% yearly.
- Based on estimates for the next years, AAPL will show a small growth in Revenue. The Revenue will grow by 7.46% on average per year.
EPS Next Y16.21%
EPS Next 2Y12.97%
EPS Next 3Y12.02%
EPS Next 5Y14.3%
Revenue Next Year12.17%
Revenue Next 2Y9.39%
Revenue Next 3Y8.19%
Revenue Next 5Y7.46%
3.3 Evolution
- Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. AAPL Valuation Analysis
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 32.97, the valuation of AAPL can be described as expensive.
- 64.86% of the companies in the same industry are more expensive than AAPL, based on the Price/Earnings ratio.
- When comparing the Price/Earnings ratio of AAPL to the average of the S&P500 Index (26.15), we can say AAPL is valued slightly more expensively.
- A Price/Forward Earnings ratio of 27.36 indicates a quite expensive valuation of AAPL.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of AAPL is on the same level as its industry peers.
- AAPL is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 24.27, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.97 | ||
| Fwd PE | 27.36 |
4.2 Price Multiples
- AAPL's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. AAPL is cheaper than 70.27% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, AAPL is valued a bit cheaper than the industry average as 67.57% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.09 | ||
| EV/EBITDA | 25.08 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates AAPL does not grow enough to justify the current Price/Earnings ratio.
- AAPL has an outstanding profitability rating, which may justify a higher PE ratio.
- AAPL's earnings are expected to grow with 12.02% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.03
PEG (5Y)1.83
EPS Next 2Y12.97%
EPS Next 3Y12.02%
5. AAPL Dividend Analysis
5.1 Amount
- AAPL has a yearly dividend return of 0.33%, which is pretty low.
- Compared to an average industry Dividend Yield of 0.63, AAPL pays a bit more dividend than its industry peers.
- With a Dividend Yield of 0.33, AAPL pays less dividend than the S&P500 average, which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.33% |
5.2 History
- The dividend of AAPL has a limited annual growth rate of 4.95%.
- AAPL has been paying a dividend for at least 10 years, so it has a reliable track record.
- AAPL has decreased its dividend recently.
Dividend Growth(5Y)4.95%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
- AAPL pays out 13.15% of its income as dividend. This is a sustainable payout ratio.
- AAPL's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP13.15%
EPS Next 2Y12.97%
EPS Next 3Y12.02%
AAPL Fundamentals: All Metrics, Ratios and Statistics
260.81
-0.02 (-0.01%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryTechnology Hardware, Storage & Peripherals
Earnings (Last)01-29 2026-01-29/amc
Earnings (Next)04-29 2026-04-29/amc
Inst Owners65.01%
Inst Owner Change1.38%
Ins Owners0.06%
Ins Owner Change0.5%
Market Cap3.83T
Revenue(TTM)435.62B
Net Income(TTM)117.78B
Analysts77.78
Price Target296 (13.49%)
Short Float %0.92%
Short Ratio2.67
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.33% |
Yearly Dividend1.03
Dividend Growth(5Y)4.95%
DP13.15%
Div Incr Years1
Div Non Decr Years1
Ex-Date02-09 2026-02-09 (0.26)
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3.27%
Min EPS beat(2)2.35%
Max EPS beat(2)4.19%
EPS beat(4)3
Avg EPS beat(4)3.33%
Min EPS beat(4)-0.58%
Max EPS beat(4)7.34%
EPS beat(8)6
Avg EPS beat(8)1.97%
EPS beat(12)10
Avg EPS beat(12)2.32%
EPS beat(16)12
Avg EPS beat(16)1.76%
Revenue beat(2)1
Avg Revenue beat(2)0.01%
Min Revenue beat(2)-1.76%
Max Revenue beat(2)1.77%
Revenue beat(4)2
Avg Revenue beat(4)0.43%
Min Revenue beat(4)-1.76%
Max Revenue beat(4)2.97%
Revenue beat(8)2
Avg Revenue beat(8)-0.42%
Revenue beat(12)2
Avg Revenue beat(12)-0.62%
Revenue beat(16)3
Avg Revenue beat(16)-0.85%
PT rev (1m)0.33%
PT rev (3m)3.33%
EPS NQ rev (1m)1.02%
EPS NQ rev (3m)5.77%
EPS NY rev (1m)0.54%
EPS NY rev (3m)2.92%
Revenue NQ rev (1m)0.45%
Revenue NQ rev (3m)4.59%
Revenue NY rev (1m)0.54%
Revenue NY rev (3m)2.84%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.97 | ||
| Fwd PE | 27.36 | ||
| P/S | 8.8 | ||
| P/FCF | 31.09 | ||
| P/OCF | 28.31 | ||
| P/B | 43.48 | ||
| P/tB | 43.48 | ||
| EV/EBITDA | 25.08 |
EPS(TTM)7.91
EY3.03%
EPS(NY)9.53
Fwd EY3.66%
FCF(TTM)8.39
FCFY3.22%
OCF(TTM)9.21
OCFY3.53%
SpS29.63
BVpS6
TBVpS6
PEG (NY)2.03
PEG (5Y)1.83
Graham Number32.67
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 31.05% | ||
| ROE | 133.55% | ||
| ROCE | 65.03% | ||
| ROIC | 54.2% | ||
| ROICexc | 78.06% | ||
| ROICexgc | 78.06% | ||
| OM | 32.38% | ||
| PM (TTM) | 27.04% | ||
| GM | 47.33% | ||
| FCFM | 28.31% |
ROA(3y)28.12%
ROA(5y)27.93%
ROE(3y)157.53%
ROE(5y)163.92%
ROIC(3y)50.93%
ROIC(5y)48.1%
ROICexc(3y)72.42%
ROICexc(5y)66.83%
ROICexgc(3y)72.42%
ROICexgc(5y)66.83%
ROCE(3y)63.07%
ROCE(5y)59.52%
ROICexgc growth 3Y6.76%
ROICexgc growth 5Y12.61%
ROICexc growth 3Y6.76%
ROICexc growth 5Y12.61%
OM growth 3Y1.82%
OM growth 5Y5.77%
PM growth 3Y2.07%
PM growth 5Y5.18%
GM growth 3Y2.69%
GM growth 5Y4.17%
F-Score8
Asset Turnover1.15
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.89 | ||
| Debt/FCF | 0.73 | ||
| Debt/EBITDA | 0.51 | ||
| Cap/Depr | 102.67% | ||
| Cap/Sales | 2.79% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 88.6% | ||
| Profit Quality | 104.71% | ||
| Current Ratio | 0.97 | ||
| Quick Ratio | 0.94 | ||
| Altman-Z | 10.26 |
F-Score8
WACC8.67%
ROIC/WACC6.25
Cap/Depr(3y)95.46%
Cap/Depr(5y)96.21%
Cap/Sales(3y)2.78%
Cap/Sales(5y)2.82%
Profit Quality(3y)102.31%
Profit Quality(5y)103.35%
High Growth Momentum
Growth
EPS 1Y (TTM)13.49%
EPS 3Y6.93%
EPS 5Y18.04%
EPS Q2Q%18.33%
EPS Next Y16.21%
EPS Next 2Y12.97%
EPS Next 3Y12.02%
EPS Next 5Y14.3%
Revenue 1Y (TTM)10.07%
Revenue growth 3Y1.81%
Revenue growth 5Y8.68%
Sales Q2Q%15.65%
Revenue Next Year12.17%
Revenue Next 2Y9.39%
Revenue Next 3Y8.19%
Revenue Next 5Y7.46%
EBIT growth 1Y12.25%
EBIT growth 3Y3.66%
EBIT growth 5Y14.95%
EBIT Next Year22.84%
EBIT Next 3Y12.34%
EBIT Next 5Y10.87%
FCF growth 1Y15.4%
FCF growth 3Y-3.95%
FCF growth 5Y6.13%
OCF growth 1Y16.35%
OCF growth 3Y-3%
OCF growth 5Y6.68%
APPLE INC / AAPL FAQ
What is the ChartMill fundamental rating of APPLE INC (AAPL) stock?
ChartMill assigns a fundamental rating of 7 / 10 to AAPL.
Can you provide the valuation status for APPLE INC?
ChartMill assigns a valuation rating of 4 / 10 to APPLE INC (AAPL). This can be considered as Fairly Valued.
Can you provide the profitability details for APPLE INC?
APPLE INC (AAPL) has a profitability rating of 10 / 10.
What is the expected EPS growth for APPLE INC (AAPL) stock?
The Earnings per Share (EPS) of APPLE INC (AAPL) is expected to grow by 16.21% in the next year.
How sustainable is the dividend of APPLE INC (AAPL) stock?
The dividend rating of APPLE INC (AAPL) is 5 / 10 and the dividend payout ratio is 13.15%.