SuperworthApple Inc. AAPL
- Market cap
- $4.9T
- PE
- 38.6×
- 10y median 27.8×
- Forward PE
- Price to sales
- 10.5×
- EV/EBIT
- 31.9×
- Revenue, 12 months
- $466.8B
- +14% on a year ago
- Net margin
- 27.6%
- Free cash flow yield
- 2.8%
Paying up for a machine that kept working
Record margins and a multiple near its ten year high, just as growth is expected to slow
Growth came back
Revenue sat flat around 385 billion dollars through 2024, which was the bear case. It then moved to 467 billion. The flat stretch and the reacceleration are both on this chart.
Ten year high margins, with a one-off inside
Gross margin over the last twelve months is 48.7 percent, a ten year high against a median of 41.0. Operating margin is a ten year high too, against a median of 28.8. The June quarter's 50.1 percent gross margin included about two points of tariff refunds, a one-off, so part of the record may not repeat. Most of the climb came before them.
Profit did most of the lifting
Earnings per share rose from 6.42 dollars in the year to December 2023 to 8.72 in the year to June 2026. Most of that rise is profit. A share count about 6 percent smaller added the rest. Buybacks shrink the count, but only profit growth can keep earnings rising for good. The dip in late 2024 is a one-off tax charge in a single quarter, not a weaker business.
The PE sits near a ten year high
The PE is about 38, against a three year median of 34.4. Only about 5 percent of days in the last ten years had a higher one. Price to sales is near its ten year high too. When both measures agree, the price rose faster than the business.
A top multiple just as growth slows
Reported earnings per share grew 32 percent over the last year, but the year before held that tax charge. Adjusted, growth was about 20 percent. Consensus sees 6.4 percent growth over the next twelve months. At today's price that is about 36 times those earnings, near its ten year high. Points before September 22 are rebuilt with today's estimates.
Cash rose faster than earnings
Free cash flow over the last twelve months is 136.68 billion dollars, up about 42 percent from its low of 96.18 billion in the year to June 2025. At today's price that cash is a 2.8 percent yield, near its ten year low. The cash is strong, and so is the price paid for it.
October 29 starts the test
Apple reports the September quarter on October 29. The bigger test is the December quarter, the first with the 1,999 dollar iPhone Duo foldable and the first full one with Pro models priced 100 dollars higher. Consensus expects 152.11 billion of revenue, above last December's record. Strong holiday sales would back the multiple. Weak ones would leave it little cushion.
What has happened lately
- Apple, Apple unveils iPhone Duo, its first foldable, starting at $1,999Opens a price tier above the Pro line; pre-orders start October 16 and shipping October 23, so revenue lands mainly in the December quarter.
- Apple, Apple debuts iPhone 18 Pro and iPhone 18 Pro Max at $1,199 and $1,299Both Pro models carry a $100 price increase over the prior generation, lifting iPhone average selling prices from the September quarter onward.
- Apple, Apple sets new EU app business terms, cutting its standard commission to 26%Resolves Apple's Digital Markets Act dispute with the European Commission and fixes EU App Store take rates from October 1, easing recurring fine risk.
- Apple, Apple reports June-quarter revenue of $109.4 billion, up 16% year over yearJune-quarter records for iPhone, Mac and Services at a 50.1% gross margin, which included roughly two points of benefit from tariff refunds.
Headlines link to the original source.
Charts
Financials
| Income statement | Q1 FY24 | Q2 FY24 | Q3 FY24 | Q4 FY24 | Q1 FY25 | Q2 FY25 | Q3 FY25 | Q4 FY25 | Q1 FY26 | Q2 FY26 | Q3 FY26 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| $119.6B | $90.8B | $85.8B | $94.9B | $124.3B+4% | $95.4B+5% | $94B+10% | $102.5B+8% | $143.8B+16% | $111.2B+17% | $109.4B+16% | |
| Cost of revenue | $64.7B | $48.5B | $46.1B | $51.1B | $66B+2% | $50.5B+4% | $50.3B+9% | $54.1B+6% | $74.5B+13% | $56.4B+12% | $54.6B+9% |
| Gross profit | $54.9B | $42.3B | $39.7B | $43.9B | $58.3B+6% | $44.9B+6% | $43.7B+10% | $48.3B+10% | $69.2B+19% | $54.8B+22% | $54.8B+25% |
| R&D | $7.7B | $7.9B | $8B | $7.8B | $8.3B+7% | $8.6B+8% | $8.9B+11% | $8.9B+14% | $10.9B+32% | $11.4B+34% | $11.7B+32% |
| SG&A | $6.8B | $6.5B | $6.3B | $6.5B | $7.2B+6% | $6.7B+4% | $6.7B+5% | $7B+8% | $7.5B+4% | $7.5B+11% | $7.3B+11% |
| $40.4B | $27.9B | $25.4B | $29.6B | $42.8B+6% | $29.6B+6% | $28.2B+11% | $32.4B+10% | $50.9B+19% | $35.9B+21% | $35.7B+27% | |
| Pre-tax income | $40.3B | $28.1B | $25.5B | $29.6B | $42.6B+6% | $29.3B+5% | $28B+10% | $32.8B+11% | $51B+20% | $35.8B+22% | $36.3B+29% |
| $6.4B | $4.4B | $4B | $14.9B | $6.3B−2% | $4.5B+2% | $4.6B+14% | $5.3B−64% | $8.9B+42% | $6.3B+38% | $6.5B+41% | |
| Net income | $33.9B | $23.6B | $21.4B | $14.7B | $36.3B+7% | $24.8B+5% | $23.4B+9% | $27.5B+86% | $42.1B+16% | $29.6B+19% | $29.8B+27% |
| $2.18 | $1.53 | $1.40 | $0.97 | $2.40+10% | $1.65+8% | $1.57+12% | $1.85+91% | $2.84+18% | $2.01+22% | $2.02+29% | |
| 15.6B | 15.5B | 15.3B | 15.2B | 15.2B−3% | 15.1B−3% | 14.9B−3% | 15B−2% | 14.8B−2% | 14.7B−2% | 14.7B−2% |
From each company's 10-Q and 10-K filings. Fiscal years are four fiscal quarters added up; balance sheet lines are as of the period's end. Growth is on the same period a year earlier.
Estimates
Next earnings report: .
Analyst consensus for the next eight quarters, with the range from the lowest to the highest estimate, is part of Superworth Pro.
Peers
Companies in Technology within ten times Apple's size, closest in size first.
| Company | Market cap | PE | Its 10y median PE | Fwd PE | P/S | Revenue growth | Net margin |
|---|---|---|---|---|---|---|---|
| AAPLApple Inc. | $4.9T | 38.6× | 27.8× | 10.5× | +14% | 27.6% | |
| NVDANVIDIA Corporation | $5.7T | 30.0× | 53.9× | 18.9× | +83% | 63.7% | |
| MSFTMicrosoft Corporation | $3.9T | 29.5× | 33.1× | 11.9× | +18% | 40.3% | |
| AVGOBroadcom Inc. | $1.8T | 48.1× | 44.4× | 20.2× | +49% | 42.9% | |
| MUMicron Technology, Inc. | $1.2T | 14.7× | 17.4× | 9.2× | +256% | 63.8% | |
| AMDAdvanced Micro Devices, Inc. | $1.1T | 166× | 109× | 25.5× | +40% | 15.6% | |
| Peer median | $1.8T | 30.0× | 44.4× | 18.9× | +49% | 42.9% |
About
- Chief executive
- John Ternus, since 2026Joined 2001, CEO since September 2026 when Tim Cook became executive chairman. Source
- Industry
- Consumer Electronics
- Sector
- Technology
Valuation data, not investment advice. Prices as of .