Skip to Content

Apple Inc AAPL

Morningstar Rating
$215.12 +8.00 (3.86%)
View Full Chart
Unlock our analysis with Morningstar Investor

Company Report

Apple: Generative AI Announcements Fit With Our Expectations and We Maintain Our Valuation

We maintain our $170 fair value estimate for shares of wide-moat Apple after we viewed the opening keynote of its worldwide developers' conference positively and in line with our expectations. Apple unveiled long-awaited generative AI features, grouped under the moniker Apple Intelligence. After seeing the features, we continue to have confidence in a strong iPhone upgrade cycle in fiscal 2025, and we make no changes to our forecast or valuation. Customers will need an iPhone 15 Pro model or better to make full use of Apple Intelligence, which should drive new sales and upgrades, in our view. Apple also announced upgrades across its device operating systems, within which we liked the focus on customization and privacy. Apple shares had a tepid reaction to the keynote, which suggests to us that generative AI and upgrade cycle expectations were baked in to share prices. We see shares as moderately overvalued at current levels.

Price vs Fair Value

AAPL is trading at a 545% premium.
Price
$207.15
Fair Value
$195.00
Uncertainty
Medium
1-Star Price
$498.90
5-Star Price
$241.00
Economic Moat
Pgbyl
Capital Allocation
Ynnrzncgf

Bulls Say, Bears Say

Bulls

Apple offers an expansive ecosystem of tightly integrated hardware, software, and services, which locks in customers and generates strong profitability.

Bears

Apple is prone to consumer spending and preferences, which creates cyclicality and opens the firm up to disruption.

Is it the right time to buy, sell, or hold?
Start a free trial of Morningstar Investor to unlock exclusive ratings and continuous analyst coverage to help you decide if AAPL is a good fit for your portfolio.

News

Trading Information

Previous Close Price
$207.12
Day Range
$206.90216.29
52-Week Range
$164.08216.29
Bid/Ask
$215.12 / $215.15
Market Cap
$3.31 Tril
Volume/Avg
56.6 Mil / 62.5 Mil

Key Statistics

Price/Earnings (Normalized)
32.22
Price/Sales
8.48
Dividend Yield (Trailing)
0.47%
Dividend Yield (Forward)
0.48%
Total Yield
3.04%

Company Profile

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.
Sector
Technology
Industry
Consumer Electronics
Stock Style Box
Large Core
Total Number of Employees
161,000

Competitors

Valuation

Metric
AAPL
005930
GOOGL
Price/Earnings (Normalized)
32.2226.0126.98
Price/Book Value
42.821.417.47
Price/Sales
8.481.687.02
Price/Cash Flow
26.858.6119.46
Price/Earnings
AAPL
005930
GOOGL

Financial Strength

Metric
AAPL
005930
GOOGL
Quick Ratio
0.871.98
Current Ratio
1.042.552.15
Interest Coverage
8.15285.78
Quick Ratio
AAPL
005930
GOOGL

Profitability

Metric
AAPL
005930
GOOGL
Return on Assets (Normalized)
32.12%4.72%25.77%
Return on Equity (Normalized)
165.09%6.10%36.64%
Return on Invested Capital (Normalized)
62.77%4.99%32.10%
Return on Assets
AAPL
005930
GOOGL
See how this stock stacks up to its competitors with Morningstar Investor

Consumer Electronics Industry Comparables

1-Day Chart
Name
Price
Morningstar Rating for Stocks
Capital Allocation
Economic Moat
Market Cap
Sony Group Corp
SNEJF
Glth$105.2 Bil
Sony Group Corp ADR
SONY
CdctpbqsNvqt$103.6 Bil
Xiaomi Corp Class B
XIACF
Jqkfxyq$55.4 Bil
Xiaomi Corp ADR
XIACY
Yttwhd$55.4 Bil
Panasonic Holdings Corp
PCRFF
Jwkjw$19.8 Bil
Panasonic Holdings Corp ADR - Unsponsored
PCRHY
Nqq$19.8 Bil
Sharp Corp
SHCAF
Btd$4.0 Bil
Sharp Corp ADR
SHCAY
Wvg$3.8 Bil
LG Display Co Ltd ADR
LPL
Bsnqr$3.7 Bil

Sponsor Center