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 $82.64
Latest Price $137.59
Relative Value 66% overvalued
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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 11.6%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 9.8%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 11.6%, 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)
2022 81.6 74.3
2023 91.0 75.6
2024 102 76.9
2025 113 78.2
2026 127 79.5
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 1670 billion. This corresponds to a present value of 953 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 384 billion. Adding in the terminal value gives a total present value of 1340 billion.

There are presently 16.2 billion outstanding shares, so the intrinsic value per share is 82.64.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 269,672,000,000
Current Cash 125,278,000,000
Current Liabilities 250,962,000,000
Current Debt 31,226,000,000
Non-Cash Working Capital (NCWC) -75,342,000,000
Change in NCWC -36,489,000,000
EBIT 217,898,000,000
Tax Provision 29,054,000,000
Depreciation and Amortization 22,568,000,000
Capital Expenditure -22,170,000,000
Unlevered Free Cash Flow 152,821,639,665
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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