Company Analysis
Apple Inc.
Latest Price
$336.67
+0.91%
FISQENA Score
69
Average
Business Quality
89
Strong
Valuation Score
32
Poor
Financial Health
77
Good
Fair Value
Estimated Fair Value Range
Bear
$157.21
Base
$191.72
Bull
$226.23
Why?
What drives the valuation?
• Strong business quality supports the company's valuation.
• ROIC of 89.1% indicates strong capital efficiency.
• Revenue growth of 8.7% annually remains an important part of the valuation.
• The market price is above FISQENA's base fair value estimate, increasing dependence on future growth.
Custom Valuation
PROBuild your own valuation scenario using custom growth, target P/E, required return and time horizon assumptions.
Compare your fair value estimate with the latest market price.
EPS Growth
PRO
Target P/E
PRO
Required Return
PRO
Time Horizon
PRO
Financial Snapshot
FY2025 Financials
Period ended 2025-09-27 В· SEC 10-K
Revenue
$416.16B
Net Income
$112.01B
Diluted EPS
$7.46
Free Cash Flow
$98.77B
PROFITABILITY
GROWTH
FINANCIAL HEALTH
VALUATION TEST
MARKET EXPECTATIONS
What does the current price require?
FISQENA estimates the earnings growth required for the current share price to achieve the modeled return over the next 5 years.
Required Annual Return
10.0%
Required Price in Year 5
$542.21
Required EPS in Year 5
$25.46
Required EPS Growth
27.8%
Historical EPS Growth
17.9%
Expectations Gap
+10.0 pp
The current price requires approximately 27.8% annual EPS growth over 5 years to achieve a 10.0% annual return. This is above the company's 17.9% historical five-year EPS growth.
Model assumptions: 10.0% annual required return, 21.3x quality-based exit P/E and a 5-year horizon. These are valuation assumptions, not forecasts.
INVESTMENT DEBATE
What would need to go right — and what could go wrong?
A structured view of the assumptions supporting the valuation and the conditions that could weaken it.
WHAT COULD SUPPORT THE VALUATION
The valuation can be supported if earnings growth accelerates sufficiently above the recent historical rate.
A 21.3x exit P/E would support the model if that valuation multiple remains justified at the end of the period.
If the company reaches approximately $25.46 in EPS by year 5, the modeled return requirement would be met at the assumed exit multiple.
WHAT COULD CHALLENGE THE VALUATION
The required 27.8% EPS growth exceeds the company's 17.9% historical five-year rate.
A lower exit P/E would require stronger earnings growth to achieve the same 10.0% annual return.
The model is sensitive to the assumed 10.0% required return and 21.3x exit P/E.
Investment Debate describes model conditions and valuation risks. It is not investment advice or a recommendation to buy or sell a security.
STRENGTHS
вњ“ High ROIC (89.1%) indicates efficient use of invested capital.
вњ“ Strong operating margin of 32.0%.
вњ“ Strong net margin of 26.9%.
вњ“ Strong free cash flow margin of 23.7%.
RED FLAGS
вљ Current ratio of 0.89 indicates tighter short-term liquidity.
вљ P/E of 45.1x reflects demanding earnings expectations.
вљ EV/EBITDA of 34.3x indicates a premium valuation.
вљ FCF yield of 2.0% provides a relatively thin cash-flow yield at the current valuation.