Apple
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Apple Inc. is an American multinational technology company headquartered in Cupertino, California, in Silicon Valley, and known for consumer electronics, software and online services.
From Wikipedia, CC BY-SA 4.0, revision of 28 Oct 2026.
What stands out
- Sales have grown about 8.7% a year for five years, so each $1 of sales in FY2020 is about $1.52 now.Revenue growth over 5–10 years: +8.7% a year
- Apple kept about 32 cents of operating profit from each $1 of sales in FY2025.Operating margin (operating income ÷ revenue): 32.0%
- For every $1 of reported profit over 5 years, about $1.03 turned up as spare cash.Free cash flow (operating cash flow − capex), and FCF ÷ net income: $98.8B
Worth digging into
- Price more than 50% above the valuation sheet's middle valuePrice +85% against the sheet's default story, 16 Oct 2026
From filed figures and the weekly screener snapshot, 30 Oct 2026. Observations to check in the tabs below, not advice.
What has the price done?
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Press and drag across the chart to see the change between two points. Source: Yahoo Finance, delayed. Bars are daily and prices are adjusted for splits, not dividends. Past returns don't predict future returns.
Dividends
Full chart
TradingView's advanced chart, with indicators and drawing tools. It loads when you scroll to it.
How does it make money?
What it does
Apple reports revenue for 5 product lines. In FY2025, iPhone brought in 50%, services brought in 26%, wearables and home brought in 9%, Mac brought in 8% and iPad brought in 7% of revenue.
By region, Americas made up 43%, then Europe at 27%.
From Apple Inc. (SEC EDGAR), Form 10-K for the fiscal year ended 27 Sep 2025.
Where the revenue comes from
- iPhone50%
- Services26%
- Wearables and home9%
- Mac8%
- iPad7%
Shares of revenue, FY2025. Source: Apple Inc. (SEC EDGAR), Form 10-K for the fiscal year ended 27 Sep 2025.
How it makes money
Where Apple's FY2025 revenue came from, what it cost to earn, and what was left for shareholders.
- Income
- Costs and tax
- Profit
- % = share of revenue
Source: Apple Inc. (SEC EDGAR), Form 10-K for the fiscal year ended 27 Sep 2025 (31 Oct 2025), statement of operations, Notes 2 and 13. FY2025 is the year to 27 Sep 2025. Figures as reported, in US$ millions in the tooltips and table.
Technical: gross margin was 46.9%, operating margin 32.0% and net margin 26.9%. Operating costs and cost of revenue together took 68.0% of revenue.
Plain: of every dollar of sales, about 53 cents paid for making or delivering what was sold, about 15 cents went on running and growing the business, and about 27 cents ended up as profit for shareholders.
Revenue by product
Revenue by region
See the numbers
| FY2025 | US$M | % of revenue |
|---|---|---|
| Revenue | 416,161 | 100.0% |
| Cost of revenue | −220,960 | 53.1% |
| Gross profit | 195,201 | 46.9% |
| Research and development | −34,550 | 8.3% |
| Selling, general and administrative | −27,601 | 6.6% |
| Operating income | 133,050 | 32.0% |
| Other income (expense), net | −321 | 0.1% |
| Profit before tax | 132,729 | 31.9% |
| Income tax | −20,719 | 5.0% |
| Net profit to shareholders | 112,010 | 26.9% |
- Other income (expense) was a net cost of US$321M.
- Apple's reportable segments are these five regions. Its segment operating income leaves out research and development and other corporate costs, which came to US$42,627M.
History and context
Apple Inc. is an American multinational technology company headquartered in Cupertino, California, in Silicon Valley, and known for consumer electronics, software and online services. Founded in 1976 as Apple Computer Company by Steve Jobs, Steve Wozniak and Ronald Wayne, the company was incorporated by Jobs and Wozniak as Apple Computer, Inc. the following year. Its current name was adopted in 2007 as the company expanded its focus from computers to consumer electronics. Apple is one of the Big Tech companies.
From Wikipedia's article Apple Inc., the lead section as of the revision of 28 Oct 2026, retrieved 1 Nov 2026. Text under CC BY-SA 4.0, pronunciation guides removed. Wikipedia can be edited by anyone; the company's own filings are the primary source.
What it actually sells Soon
A product-by-product guide to Apple: what each one is, who buys it, and how much it brings in, in plain English and in the company's own terms. We're starting with the companies that are hardest to picture, like Broadcom.
Moat rating
Wide moat
9.1 / 10
ROIC averaged 93.3% over FY2021 to FY2025, 83.5 percentage points above a 9.71% cost of capital, and beat it in every year. Large share buybacks keep Apple's equity, and so its invested capital, small, which lifts the ratio.
Apple earns far more on the money tied up in its business than that money costs. Few companies come close.
The numbers
10.0 / 10Return on invested capital against cost of capital, computers and peripherals
- Average ROIC
- 93.3%
- Average excess return
- +83.5 pp
- Years above the hurdle
- 5 of 5
Spread 10 × 60% + durability 10 × 40% = 10.0
The sources
8.2 / 10Where Apple's advantage comes from
- 1. Brand and pricing power9 / 10
Gross margin of 46.9% in FY2025: 36.8% on products and 75.4% on services, with tariff costs weighing on products.
Apple charges premium prices and keeps almost half of every sales dollar after making the product.
- 2. Barriers to entry7 / 10
Research and development of US$34.6B in FY2025 across hardware, software and services that are designed together.
Making phones, software and services that work this well together takes years and a lot of money.
- 3. Switching costs9 / 10
Services brought in US$109.2B, 26% of sales: the App Store, iCloud, AppleCare and payments all build on devices people already own.
Your photos, apps, messages and watch all live in Apple's world. Leaving means rebuilding a lot of that.
- 4. Network effects7 / 10
The App Store links developers and users: more users draw more apps, and more apps draw more users.
Developers build for iPhone first because that's where paying customers are, which keeps customers coming.
- 5. Economies of scale9 / 10
Revenue of US$416.2B and an operating margin of 32.0% in FY2025.
Apple sells so many devices that it can spread design, software and marketing costs very thin.
Return on invested capital: Apple Inc. (SEC EDGAR), Form 10-K for the fiscal year ended 25 Sep 2021; Apple Inc. (SEC EDGAR), Form 10-K for the fiscal year ended 24 Sep 2022; Apple Inc. (SEC EDGAR), Form 10-K for the fiscal year ended 30 Sep 2023; Apple Inc. (SEC EDGAR), Form 10-K for the fiscal year ended 28 Sep 2024; Apple Inc. (SEC EDGAR), Form 10-K for the fiscal year ended 27 Sep 2025. Hurdle: Aswath Damodaran, NYU Stern, Cost of capital by sector (US), data as of January 2026.
How we worked out ROIC: operating income after tax, divided by the capital invested at the start of the year. Tax is at the year's effective rate, or the 21% US federal rate where a pre-tax loss or a tax credit makes the effective rate meaningless. Invested capital is shareholders' equity plus borrowings, less cash and short-term investments, from the opening balance sheet in the same 10-K; lease liabilities are left out. This follows Damodaran's definition. The ratios are our calculation from the filed figures, not numbers the company reports.
Lens scores are rasinbun's judgment, reviewed 19 Oct 2026. A wide moat is a reason to dig deeper, not a verdict on the price. For education only. Not financial advice.
How we rate moats ›Is it a good business at a fair price?
What each method implies
Ranges, not targetsThe five questions, and the price
Six checks from the annual reports. A flag marks a reason to dig deeper, not a verdict.
- 1. Is it growing?Within the guide
+8.7% a year
Revenue growth over 5–10 years
Revenue $274.5B in FY2020 to $416.2B in FY2025; +5.9% a year over 10 years. It fell in 1 of the last 5 years.
Sales have grown about 8.7% a year for five years, so each $1 of sales in FY2020 is about $1.52 now.
What to look for Steady growth, not one lucky year.
Source: FY2020 10-K, filed 30 Oct 2020; FY2025 10-K, filed 31 Oct 2025.
- 2. Is it profitable?Within the guide
32.0%
Operating margin (operating income ÷ revenue)
FY2025 operating margin. 5-year average 30.7%, range 29.8% to 32.0%.
Apple kept about 32 cents of operating profit from each $1 of sales in FY2025.
What to look for Stable or rising. It's cleaner than net income, which one-off items and tax can distort.
Source: FY2025 10-K, filed 31 Oct 2025.
- 3. Is the profit real cash?Within the guide
$98.8B
Free cash flow (operating cash flow − capex), and FCF ÷ net income
FY2025 free cash flow: operating cash flow $111.5B less capex $12.7B. Over 5 years FCF was 103% of net income.
For every $1 of reported profit over 5 years, about $1.03 turned up as spare cash.
What to look for FCF positive and growing, and close to net income over time.
Source: FY2025 10-K, filed 31 Oct 2025.
- 4. Is it a good business?Within the guide
114.1% ROIC
Return on invested capital (ROIC); ROE for banks
FY2025 ROIC. 5-year average 93.3% against a 9.71% cost of capital, computers and peripherals; above it in 5 of 5 years.
Apple has earned more on its money than that money costs, in 5 of the last 5 years.
What to look for Clearly above the cost of capital (roughly 8–10%). Sustained 15%+ usually means a moat.
Source: Our moat rating, Moat tab; Aswath Damodaran, NYU Stern, January 2026.
- 5. Can it survive a bad year?Within the guide
0.4x FCF
Net debt ÷ EBITDA or ÷ FCF, plus interest cover
FY2025 year end: borrowings $98.7B, cash and short-term investments $54.7B, net debt $44.0B, 0.3x EBITDA. Interest cover: —.
At last year's pace, Apple's spare cash would pay off its net debt in about 0.4 years.
What to look for Debt payable from about 3 years of FCF or less, interest covered many times.
Source: FY2025 10-K, filed 31 Oct 2025.
- 6. Is the price right?
2.0% FCF yield
FCF yield or EV/EBIT, and price against a cash-flow value
Market cap $5.0T. FCF yield 2.0% on FY2025 free cash flow. EV/EBIT 38.1x on FY2025 operating income. The valuation sheet's default story values it at US$140.24–US$241.52 a share (middle US$185.28); at US$343.46, its 16 Oct 2026 price, the price is +85.4% against the middle.
At this price, each $100 of shares comes with about $1.96 of last year's spare cash. On the sheet's default story the price sits above the middle of its value range, by 85%. Change the story and that moves.
What to look for Pay less than a cash-flow value estimate, with a margin of safety.
Source: Price $344.63, Yahoo Finance weekly snapshot, 30 Oct 2026; 14,594M shares, 10-Q 17 Jul 2026; FY2025 10-K, filed 31 Oct 2025; Stock valuation, 16 Oct 2026.
US figures: each company's Form 10-K as tagged on SEC EDGAR, collected 19 Oct 2026. Free cash flow is operating cash flow less purchases of property and equipment. Borrowings exclude leases. For education only. Not financial advice.
Ten years of financials
FY2016 to FY2025, in US dollars.
Source: Apple, Form 10-K for each year as first filed, via SEC EDGAR XBRL. Latest: FY2025 10-K, filed 31 Oct 2025. Later restatements aren't applied.
How peers compare
Big tech platformsThe platforms are compared on growth, margins and how much of revenue turns into free cash once the capex bill is paid.
| Company | Revenue growth, 5y | Operating margin | FCF margin | P/E |
|---|---|---|---|---|
| AAPL | +8.7% a year | 32.0% | 23.7% | 46.2x |
| MSFT | +14.6% a year | 46.8% | 20.2% | 29.1x |
| GOOGL | +17.2% a year | 32.0% | 18.2% | 25.9x |
| META | +18.5% a year | 41.4% | 22.9% | 26.2x |
| AMZN | +13.2% a year | 11.2% | 1.1% | 33.5x |
- Peers' middle-half P/E
- 26.1x–30.2x (median 27.6x, 4 peers)
At the peers' middle-half P/E, Apple's earnings per share from the FY2025 10-K would put the share between $195 and $225. Those are the peer bars in the valuation chart above — one way to read the price, not a target.
Prices: weekly screener snapshot, 30 Oct 2026. Profits: each company's latest annual filing via SEC EDGAR, as filed. Peers are hand-picked for this industry. A multiple compares one year's profit with today's price; it says nothing about what either does next.
Discounted cash flow, from Stock valuation
Ten years of free cash flow to the firm, from Apple's latest figures and Damodaran's industry averages (Computers/Peripherals). It's one story told with numbers, so it comes as a range.
- Value range, the default story$140.24–$241.52Middle $185.28 a share
- Price, 16 Oct 2026 close$343.46+85.37% ▲ against the middle
- What the price implies18.7% a yearGrowth in years 2–5 that makes value equal the price; the story uses 7.0%
To be worth today's price, Apple would need to grow sales about 18.7% a year in years 2–5. One way to read this is to ask whether that sounds believable.
The story's assumptions
- Revenue, last 12 months
- $466,823M
- Operating margin now
- 33.2%
- Revenue growth, year 1
- 7.0%
- Revenue growth, years 2–5
- 7.0%
- Growth after year 10
- 5.1%
- Target operating margin, by year 5
- 33.0%
- Sales to capital, years 1–5 / 6–10
- 3.62 / 3.62
- Tax rate now / after year 10
- 16.0% / 25.0%
- Cost of capital, years 1–5
- 10.6%
- Cost of capital after year 10
- 8.7%
- Return on capital after year 10
- 16.7%
- Chance of failure
- 0.0%
Value per share as two inputs change (revenue growth, years 2–5 down, target operating margin across)
| Revenue growth, years 2–5 | 28.0% | 33.0% | 38.0% |
|---|---|---|---|
| 4.0% | $140.24 | $162.18 | $184.12 |
| 7.0% | $159.68 | $185.28 | $210.88 |
| 10.0% | $181.92 | $211.72 | $241.52 |
Middle cell: the default story. Each step is 3 points of growth or 5 points of margin.
| Year | Growth | Revenue | Margin | Operating income | Tax rate | After-tax income | Reinvestment | Free cash flow | Cost of capital | Present value |
|---|---|---|---|---|---|---|---|---|---|---|
| 1 | 7.0% | $499,501M | 33.1% | $165,526M | 16.0% | $139,042M | $9,027M | $130,015M | 10.6% | $117,524M |
| 2 | 7.0% | $534,466M | 33.1% | $176,928M | 16.0% | $148,620M | $9,659M | $138,960M | 10.6% | $113,543M |
| 3 | 7.0% | $571,878M | 33.1% | $189,115M | 16.0% | $158,857M | $10,336M | $148,521M | 10.6% | $109,697M |
| 4 | 7.0% | $611,910M | 33.0% | $202,142M | 16.0% | $169,799M | $11,059M | $158,740M | 10.6% | $105,980M |
| 5 | 7.0% | $654,743M | 33.0% | $216,065M | 16.0% | $181,495M | $11,833M | $169,662M | 10.6% | $102,390M |
| 6 | 6.6% | $698,074M | 33.0% | $230,365M | 17.8% | $189,360M | $11,971M | $177,389M | 10.2% | $97,109M |
| 7 | 6.2% | $741,606M | 33.0% | $244,730M | 19.6% | $196,763M | $12,026M | $184,737M | 9.9% | $92,061M |
| 8 | 5.9% | $785,020M | 33.0% | $259,057M | 21.4% | $203,618M | $11,993M | $191,625M | 9.5% | $87,236M |
| 9 | 5.5% | $827,976M | 33.0% | $273,232M | 23.2% | $209,842M | $11,867M | $197,975M | 9.1% | $82,627M |
| 10 | 5.1% | $870,120M | 33.0% | $287,140M | 25.0% | $215,355M | $11,643M | $203,712M | 8.7% | $78,223M |
| After 10 | 5.1% | $914,409M | 33.0% | $301,755M | 25.0% | $226,316M | $69,020M | $157,296M | 8.7% | $1,677,779M |
- Present value of years 1–10
- $986,390M
- Present value after year 10
- $1,677,779M
- Less debt, plus cash
- $62,173M
- Value of equity
- $2,726,342M
- Shares
- 14,715M
- Value per share, default story
- $185.28
Company figures: Apple 10-Q for fiscal Q3 2026, 12 months to Jun 2026 (fiscal Q3 2026); cash includes $84.1B of long-term securities; price at 16 Oct 2026 close. Industry averages: Aswath Damodaran, January 2026 US data. Risk-free rates: US 10-year Treasury 5.09% and Singapore 10-year 2.34%, 16 Oct 2026. Equity risk premium: Damodaran's implied premium of 4.20%, 1 Oct 2026. Company figures are the latest reported before 19 Oct 2026. Data as of 16 Oct 2026. The sheet follows the spreadsheets Aswath Damodaran publishes; it is not affiliated with or endorsed by him. A model's value is not a price target. For education only. Not financial advice.
Who owns it, and what's the mood?
Tracked investors and insiders
Trades in Apple by the people we follow: Warren Buffett and Michael Burry (13F), Grab's officers (Form 4) and Nancy Pelosi (House reports). They show what happened, often weeks later, not what to copy.
| Who | Did | Size | When | Disclosed |
|---|---|---|---|---|
| Tim CookExecutive Chair, Apple | SoldShares | −191,753 shares | 2 Oct 2026 | 5 Oct 20263 days after the trade |
| Tim CookExecutive Chair, Apple | Gave awayShares | −26,325 shares | 2 Oct 2026 | 5 Oct 20263 days after the trade |
| Tim CookExecutive Chair, Apple | Exercised or vestedShares | +374,541 shares | 1 Oct 2026 | 5 Oct 20264 days after the trade |
| Tim CookExecutive Chair, Apple | Withheld for taxShares | −199,038 shares | 1 Oct 2026 | 5 Oct 20264 days after the trade |
| Tim CookExecutive Chair, Apple | AwardedRestricted Stock Unit | +131,938 units | 27 Sep 2026 | 29 Sep 20262 days after the trade |
| David TepperAppaloosa | Bought putsPut options | +835,000 shares under optionabout $241,615,600 at quarter-end value | Q2 2026 | 14 Aug 202645 days after Q2 2026 ended |
| Tim CookChief Executive Officer, Apple | SoldShares | −64,949 shares | 2 Apr 2026 | 3 Apr 20261 day after the trade |
| Tim CookChief Executive Officer, Apple | Exercised or vestedShares | +131,576 shares | 1 Apr 2026 | 3 Apr 20262 days after the trade |
| Tim CookChief Executive Officer, Apple | Withheld for taxShares | −66,627 shares | 1 Apr 2026 | 3 Apr 20262 days after the trade |
| Warren BuffettBerkshire Hathaway | TrimmedShares | −10,294,956 sharesabout $2,798,786,738 at quarter-end value | Q4 2025 | 17 Feb 202648 days after Q4 2025 ended |
Sources: SEC EDGAR 13F-HR and Form 4 filings, and the US House Clerk's Periodic Transaction Reports, checked 30 Oct 2026. 13F values are the quarter-end value, not the price paid. Showing the 10 latest of 21. All tracked trades ›
- Largest shareholdersSoonThe biggest holders from 13F filings and the annual proxy statement.—
- Chief executive and board holdingsSoonShares held by the CEO and directors, from the proxy statement and Form 4s.—
- Short interestSoonHow many shares are sold short, from exchange short-interest reports.—
Crowd favourite or value trap?
Neither is a label we can put on a stock. These are signs worth looking into, each from a figure on this page.
Signs of a crowd-driven price
Meme stocks move on attention more than on results: big swings, a price far from cash-flow value, thin profits.
1 of 4 signs
- NoSwings at least twice as much as the marketBeta 1.07, 5 years of monthly returns
- NoUp more than 100%, or down more than 50%, in a year1-year price change +27.94%
- YesPrice more than 50% above the valuation sheet's middle valuePrice +85% against the sheet's default story, 16 Oct 2026
- NoThin profits: operating margin under 5%, or a lossFY2025 operating margin 32.0%
Signs of a value trap
A value trap looks cheap because the business is shrinking or earning less than its capital costs.
0 of 4 signs
- NoLooks cheap: P/E under 12 or FCF yield over 8%P/E 46.2x, FCF yield 2.0%
- NoRevenue lower than five years agoRevenue +8.7% a year over 5 years
- NoReturns below the cost of capital5-year average ROIC 93.3% against 9.7%
- NoMore than 30% below its 52-week high−2.0% from the 52-week high
Prices, beta and 1-year change: Yahoo Finance weekly snapshot, 30 Oct 2026. Business figures: the five questions under Valuation and financials. A sign is a reason to dig deeper, not a verdict. For education only. Not financial advice.
Read it through a lens
Price data: Yahoo Finance, delayed. Company figures: each company's own filings, dated where they appear. A ticker on this site is not a recommendation. For education only. Not financial advice.