Apple Inc.(AAPL) - Stock detail

Apple Inc.

US
AAPL
Apple Inc.(Listing date: 12/12/1980)

Apple Inc. was founded on January 3, 1977, in California. The company designs, manufactures, and sells smartphones, personal computers, tablets, wearable devices, and accessories, and provides various related services.

AI Value AnalystSell
Overall Rating5/10
Generated at:2026-03-04 16:36:11
Analysis based on 5 financial reports from 2024-06-29 to 2025-06-28. Data includes quarterly financial statements covering profitability, valuation, and financial condition metrics. Market price data as of 2026-03-05. Analysis includes 60-day trading range data ($246.70-$281.14). Data completeness is good with comprehensive coverage of key financial metrics and ratios.
Overview

Apple Inc. is a global technology leader with strong profitability metrics but faces valuation concerns and mixed financial health. The company demonstrates exceptional profitability with industry-leading margins and consistent growth, but current stock price appears significantly overvalued based on fundamental metrics. Financial condition shows stability but requires monitoring of debt levels and liquidity constraints.

Valuation
2/10
Profitability
8/10
Financial health
5/10
Operation Advice
  • Sell recommendation based on significant overvaluation.
  • Consider re-entry if price declines near $200 or if quarterly results show accelerated growth.
  • Short-term trading range expected at $250-$270, with long-term fundamental correction expected to $170-$200 range.
  • Monitor Q4 2025 earnings for updated guidance.

Valuation

P/E TTM
32.88
P/E LYR
33.89
P/B MRQ
43.91
P/S TTM
--
AI Analysis
  • Apple trades at a premium to historical and sector averages with elevated P/E (32.88), forward P/E (33.89), P/B (43.91), and P/S (12.29) ratios. Current price of $262.52 is overvalued by 24%-31% relative to fundamental fair value range of $170-$200 based on normalized P/E and growth assumptions.
  • P/E (TTM) of 32.88 is above historical averages, indicating premium pricing relative to earnings
  • Forward P/E of 33.89 suggests continued high earnings expectations
  • P/B ratio of 43.91 is extremely high, reflecting market optimism but may indicate overvaluation
  • P/S (TTM) of 12.29 is elevated but justified by high margins and growth profile
  • Earnings-based target price using TTM EPS of $5.62 × 28-32 P/E yields $157.36-$179.84
  • Growth-adjusted PEG ≈ 3.3-4.7 (P/E ÷ growth), which is >1.0, suggesting overvaluation
  • Market-implied range with P/E of 30-35 yields $168.60-$196.70
  • Current price ($262.52) far exceeds reasonable valuation ranges, indicating overvaluation
  • High P/B and P/S ratios reinforce overvaluation concerns
  • Fundamental fair value range estimated at $170-$200 based on normalized P/E and growth assumptions
Valuation trend

Profitability

ROE TTM
137.72%
Net margin
26.95%
Gross margin
46.82%
Total revenue
313.69B
AI Analysis
  • Apple demonstrates exceptional profitability with industry-leading gross margins (46.82%), strong net margins (26.95%), and accelerating revenue growth from 0.79% to 5.94% in recent quarters. High ROE (137.72%) and ROA (24.28%) indicate efficient operations and strong profitability driven by brand power and pricing strategy.
  • Gross margin of 46.82% in latest quarter remains industry-leading, supported by premium pricing and supply chain efficiency
  • Net margin of 26.95% reflects strong cost control
  • Revenue growth accelerated from 0.79% (Q3 2024) to 5.94% (Q3 2025), indicating renewed product and service demand
  • ROE of 137.72% is extremely high, driven by high financial leverage and efficient operations
  • ROA of 24.28% confirms core operational efficiency
  • All recent quarters show positive YoY growth in revenue, gross profit, and net income, underscoring stable execution
  • Profitability is a key strength, driven by brand power, pricing strategy, and service revenue growth
Profitability
2024Q22024Q32024Q42025Q12025Q2
ROE TTM--157.41%58.74%98.77%137.72%
Earnings
2024Q22024Q32024Q42025Q12025Q2
Total revenue296.11B391.04B124.30B219.66B313.69B

Financial health

Debt/Asset
80.14%
Current ratio
0.87
Quick ratio
0.83
Cash ratio
0.83
AI Analysis
  • Apple's financial health shows mixed signals with strong profitability metrics (ROE: 137.72%, ROA: 24.28%) and consistent revenue growth, but concerns include high leverage (debt-to-equity structure at 80.14%) and liquidity pressure with current ratio (0.87) and quick ratio (0.83) below 1.0, suggesting potential short-term liquidity constraints.
  • Strong profitability metrics with ROE: 137.72% and ROA: 24.28% indicating efficient use of equity and assets
  • Consistent revenue growth with latest quarterly YoY growth at 5.94%
  • High cash flow generation ability inferred from net margins around 27%
  • High leverage with debt-to-equity structure at 80.14%, though common for capital-intensive tech firms
  • Liquidity pressure with current ratio (0.87) and quick ratio (0.83) below 1.0, suggesting potential short-term liquidity constraints
  • Liquidity concerns are partly offset by strong cash reserves not fully captured in these ratios
  • Overall financial health is stable but requires monitoring of debt levels and liquidity
Leverage
2024Q22024Q32024Q42025Q12025Q2
Debt/Asset79.88%84.40%80.60%79.83%80.14%
Liquidity
2024Q22024Q32024Q42025Q12025Q2
Current ratio0.950.870.920.820.87