Apple Inc.AAPL
NASDAQ • Technology
$298.97
P/E
36.06
PEG
1.86
FCF Yield
2.2%
Rev Growth YoY
+16.6% YoY
Gross Margin
49.3%
Health Score
8/10
D/E Ratio
1.52
Confidence
MEDIUM
Business Snapshot
Apple Inc. is a global leader in consumer electronics, generating the majority of its revenue from iPhone sales, along with services (App Store, iCloud, Apple Music), wearables, and Mac/iPad product lines. The company operates in the highly competitive smartphone and personal computing market but holds a dominant position due to its premium brand, integrated hardware-software ecosystem, and strong customer loyalty. With a market capitalisation of $4.41T, Apple is classified as a mega-cap company and generated TTM revenue of $451.44B, making it one of the largest publicly traded firms globally. Its defining characteristic is a powerful ecosystem that drives high switching costs and recurring services revenue, underpinned by industry-leading gross margins above 49%.
Financial Health
Gross margin improved to 49.3% from 48.2% a year earlier, while net margin stands at a robust 27.2%, reflecting strong pricing power and operating efficiency. The balance sheet shows a debt/equity ratio of 1.52x, indicating moderate leverage, but the current ratio of 0.89x suggests short-term liquidity is stretched—current liabilities exceed current assets...
Risk Assessment
- VALUATION — P/E of 36.06x is slightly above the sector average of 35x, while Price/Book of 40.45x indicates an extreme premium to book value.
- DEBT / LIQUIDITY — Debt/equity of 1.52x is elevated, and the current ratio of 0.89x signals potential short-term liquidity pressure.
- REVENUE DECELERATION — Quarterly revenue fell 22.7% sequentially, contrasting with the strong 16.6% YoY growth, highlighting seasonal volatility.
- VALUATION DIVERGENCE — The two DCF estimates ($154.94 and $208.52) differ by roughly 34.5%, indicating material uncertainty in intrinsic value.
- TECHNICALS — RSI and MACD data are unavailable for this period; only moving average data is present, limiting technical trend confirmation.
- FCF / CASH BURN — While free cash flow is positive at $98.77B, the FCF yield of 2.2% is relatively low for a mega-cap, offering modest cash return relative to price....