At this time, the firm appears to be overvalued. Apple Inc shows a prevailing Real Value of USD185.94 per share. The current price of the firm is USD229.5. Our model approximates the value of Apple Inc from analyzing the firm fundamentals such as Return On Equity of 1.57, profit margin of 0.24 %, and Current Valuation of 3.52 T as well as examining its technical indicators and probability of bankruptcy.
Enterprise Value
3.5 T
Overvalued
Today 229.50
Please note that Apple's price fluctuation is very steady at this time. Calculation of the real value of Apple Inc is based on 3 months time horizon. Increasing Apple's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
The fair value of the Apple stock is determined by what a typical buyer is willing to pay for full or partial control of Apple Inc. Since Apple is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Apple Stock. However, Apple's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value.
Historical
Market 229.5
Real 185.94
Hype 229.5
Naive 242.5
The intrinsic value of Apple's stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence Apple's stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
Estimating the potential upside or downside of Apple Inc helps investors to forecast how Apple stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Apple more accurately as focusing exclusively on Apple's fundamentals will not take into account other important factors:
Apple Inc is presently projected to have takeover price of 3.52 T with market capitalization of (9223372.04 T), debt of , and cash on hands of . Please note that takeover price may be misleading and is a subject to mistakes in financial statements. We encourage investors to thoroughly investigate all of the Apple fundamentals before making investing decisions based on enterprise value of the company
About 62.0% of the company shares are owned by institutions such as pension funds. The company recorded earning per share (EPS) of 12.73. Apple Inc had not issued any dividends in recent years. The entity had 4:1 split on the 31st of August 2020. Based on the measurements of operating efficiency obtained from Apple's historical financial statements, Apple Inc is performing exceptionally good at the moment. It has a great risk to report excellent financial results in December.
One of the ways to look at asset utilization of Apple is to check how much profit was generated for every dollar of assets it reports. Apple Inc utilizes its assets nearly 0.21 percent, earning USD0.002146 for each dollar of assets held by the firm. A positive asset utilization signifies that the company is slightly more effective with each dollar of assets it shows. Put another way, asset utilization of Apple shows how effective it operates for each dollar spent on its assets.
Covid
Apple Ownership Allocation
Apple holds a total of 4.75 Billion outstanding shares. Over half of Apple's outstanding shares are owned by other corporate entities. These other corporate entities are typically referred to as corporate investors that acquire positions in a given instrument to benefit from reduced trade commissions. Consequently, these institutions are subject to different rules and regulations than regular investors in Apple. Please watch out for any change in the institutional holdings of Apple Inc as this could mean something significant has changed or is about to change at the company. Please note that no matter how many assets the company secures, if the real value of the firm is less than the current market value, you may not be able to make money on it.
Apple Profitability Analysis
The company reported the revenue of 391.03 B. Net Income was 97 B with profit before overhead, payroll, taxes, and interest of 170.78 B.
About Apple Valuation
The stock valuation mechanism determines Apple's current worth on a daily basis. In general, an absolute valuation approach attempts to find the value of Apple Inc based exclusively on its fundamental and basic technical indicators. As compared to an absolute model, our relative valuation model uses a comparative analysis of Apple. We calculate exposure to Apple's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of Apple's related companies.
When running Apple's price analysis, check to measure Apple's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Apple is operating at the current time. Most of Apple's value examination focuses on studying past and present price action to predict the probability of Apple's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Apple's price. Additionally, you may evaluate how the addition of Apple to your portfolios can decrease your overall portfolio volatility.