DCF Tool

AAPL

Apple Inc – Electronic Computer Manufacturing
Apple Inc. is an American multinational technology company headquartered in Cupertino, California, that designs, develops, and sells consumer electronics, computer software, and online services. It is considered one of the Big Five companies in the U.S. information technology industry, along with Amazon, Google, Microsoft, and Facebook. Its hardware products include the iPhone smartphone, the iPad tablet computer, the Mac personal computer, the iPod portable media player, the Apple Watch smartwatch, the Apple TV digital media player, the AirPods wireless earbuds, the AirPods Max headphones, and the HomePod smart speaker line. Apple's software includes iOS, iPadOS, macOS, watchOS, and tvOS operating systems, the iTunes media player, the Safari web browser, the Shazam music identifier, and the iLife and iWork creativity and productivity suites, as well as professional applications like Final Cut Pro X, Logic Pro, and Xcode. Its online services include the iTunes Store, the iOS App Store, Mac App Store, Apple Arcade, Apple Music, Apple TV+, iMessage, and iCloud. Other services include Apple Store, Genius Bar, AppleCare, Apple Pay, Apple Pay Cash, and Apple Card. Apple was founded by Steve Jobs, Steve Wozniak, and Ronald Wayne in April 1976 to develop and sell Wozniak's Apple I personal computer, though Wayne sold his share back within 12 days. It was incorporated as Apple Computer, Inc., in January 1977, and sales of its computers, including the Apple I and Apple II, grew quickly.
Analysis Results
Intrinsic Value $314.20
Latest Price $159.38
Relative Value 49% undervalued
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Cash Flow (Billions)
Analysis Parameters
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Analysis Details
Growth Rate Projection

An exponential growth model was fit to the past cash flow data, giving more weight to more recent years. This model determined a growth rate estimate of 14.0%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 3.3%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 14.0%, the cash flows for the next 5 years are projected.

The present value of each year's flow is adjusted to present value using the discount rate.

Year Future flow (billion) Present value (billion)
2023 105 101
2024 119 112
2025 136 123
2026 155 136
2027 176 150
Terminal Value

Assuming the company was sold after the projection period at an exit multiple of 30, the terminal value of the company would be 5290 billion. This corresponds to a present value of 4350 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 622 billion. Adding in the terminal value gives a total present value of 4970 billion.

There are presently 15.8 billion outstanding shares, so the intrinsic value per share is 314.2.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 135,405,000,000
Current Cash 48,304,000,000
Current Liabilities 153,982,000,000
Current Debt 21,110,000,000
Non-Cash Working Capital (NCWC) -45,771,000,000
Change in NCWC -8,100,000,000
EBIT 119,437,000,000
Tax Provision 19,300,000,000
Depreciation and Amortization 11,104,000,000
Capital Expenditure -10,708,000,000
Unlevered Free Cash Flow 92,378,877,097
Current Assets 134,836,000,000
Current Cash 62,639,000,000
Current Liabilities 125,481,000,000
Current Debt 15,613,000,000
Non-Cash Working Capital (NCWC) -37,671,000,000
Change in NCWC 1,182,000,000
EBIT 108,949,000,000
Tax Provision 14,527,000,000
Depreciation and Amortization 11,284,000,000
Capital Expenditure -11,085,000,000
Unlevered Free Cash Flow 95,837,319,832
Current Assets 143,713,000,000
Current Cash 90,943,000,000
Current Liabilities 105,392,000,000
Current Debt 13,769,000,000
Non-Cash Working Capital (NCWC) -38,853,000,000
Change in NCWC -11,637,000,000
EBIT 66,288,000,000
Tax Provision 9,680,000,000
Depreciation and Amortization 11,056,000,000
Capital Expenditure -7,309,000,000
Unlevered Free Cash Flow 48,833,858,162
Current Assets 162,819,000,000
Current Cash 100,557,000,000
Current Liabilities 105,718,000,000
Current Debt 16,240,000,000
Non-Cash Working Capital (NCWC) -27,216,000,000
Change in NCWC 3,864,000,000
EBIT 63,930,000,000
Tax Provision 10,481,000,000
Depreciation and Amortization 12,547,000,000
Capital Expenditure -10,495,000,000
Unlevered Free Cash Flow 59,653,105,131
Current Assets 131,339,000,000
Current Cash 66,301,000,000
Current Liabilities 116,866,000,000
Current Debt 20,748,000,000
Non-Cash Working Capital (NCWC) -31,080,000,000
Change in NCWC -3,203,000,000
EBIT 70,898,000,000
Tax Provision 13,372,000,000
Depreciation and Amortization 10,903,000,000
Capital Expenditure -13,313,000,000
Unlevered Free Cash Flow 52,280,760,723
Current Assets 128,645,000,000
Current Cash 74,181,000,000
Current Liabilities 100,814,000,000
Current Debt 18,473,000,000
Non-Cash Working Capital (NCWC) -27,877,000,000
Change in NCWC -190,000,000
EBIT 61,344,000,000
Tax Provision 15,738,000,000
Depreciation and Amortization 10,157,000,000
Capital Expenditure -12,795,000,000
Unlevered Free Cash Flow 43,452,075,270
Current Assets 106,869,000,000
Current Cash 67,155,000,000
Current Liabilities 79,006,000,000
Current Debt 11,605,000,000
Non-Cash Working Capital (NCWC) -27,687,000,000
Change in NCWC -5,853,000,000
EBIT 60,024,000,000
Tax Provision 15,685,000,000
Depreciation and Amortization 10,505,000,000
Capital Expenditure -13,548,000,000
Unlevered Free Cash Flow 35,787,511,829
Current Assets 89,378,000,000
Current Cash 41,601,000,000
Current Liabilities 80,610,000,000
Current Debt 10,999,000,000
Non-Cash Working Capital (NCWC) -21,834,000,000
Change in NCWC -8,148,000,000
EBIT 71,230,000,000
Tax Provision 19,121,000,000
Depreciation and Amortization 11,257,000,000
Capital Expenditure -11,247,000,000
Unlevered Free Cash Flow 44,309,833,137
Current Assets 68,531,000,000
Current Cash 25,077,000,000
Current Liabilities 63,448,000,000
Current Debt 6,308,000,000
Non-Cash Working Capital (NCWC) -13,686,000,000
Change in NCWC -2,768,000,000
EBIT 52,503,000,000
Tax Provision 13,973,000,000
Depreciation and Amortization 7,946,000,000
Capital Expenditure -9,813,000,000
Unlevered Free Cash Flow 34,151,035,375
Current Assets 73,286,000,000
Current Cash 40,546,000,000
Current Liabilities 43,658,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) -10,918,000,000
Change in NCWC -900,000,000
EBIT 48,999,000,000
Tax Provision 13,118,000,000
Depreciation and Amortization 6,757,000,000
Capital Expenditure -9,076,000,000
Unlevered Free Cash Flow 32,964,350,872
Current Assets 57,653,000,000
Current Cash 29,129,000,000
Current Liabilities 38,542,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) -10,018,000,000
Change in NCWC -1,084,000,000
EBIT 55,241,000,000
Tax Provision 14,030,000,000
Depreciation and Amortization 3,277,000,000
Capital Expenditure -9,402,000,000
Unlevered Free Cash Flow 34,133,335,473

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