A Deep Dive Analysis into AAPL's Current Valuation
Apple is among the largest companies in the world, with a broad portfolio of hardware and software products targeted at consumers and businesses. Apple's iPhone makes up a majority of the firm sales, and Apple's other products like Mac, iPad, and Watch are designed around the iPhone as the focal point of an expansive software ecosystem. Apple has progressively worked to add new applications, like streaming video, subscription bundles, and augmented reality. The firm designs its own software and semiconductors while working with subcontractors like Foxconn and TSMC to build its products and chips. Slightly less than half of Apple's sales come directly through its flagship stores, with a majority of sales coming indirectly through partnerships and distribution.
AAPL's stock price is driven by both fundamental growth factors and compelling market narratives that shape investor sentiment.
Apple is adding AI features to iOS 18, developing custom AI chips, and updating Siri with new AI capabilities. All AI processing happens on-device to protect user privacy.
Apple is expanding its services business through App Store, iCloud, Apple TV+, and financial services offerings.
Vision Pro is Apple's first major new product category since Apple Watch, introducing a new spatial computing platform.
$196.45
As of 6/13/2025
$3008.8B
Enterprise Value
$379.7B
Based on Q3 2024
At AAPL's current market cap of $3008.8B, the market is pricing in extremely aggressive growth assumptions. Let's examine if these expectations are realistic using a discounted cash flow (DCF) analysis to determine fundamental value.
Growth Reality Check: The current valuation implies 10% annual growth, which is 1.7x higher than AAPL's current growth rate of 6.0%.
$2491.8B
Based on your growth and margin assumptions