Overview
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 name was changed to its current one in 2007 as the company expanded its focus from computers to consumer electronics. Apple is one of the Big Tech companies.
Ben Graham Analysis
Stock passes only 1 of 7 Graham criteria. Multiple risk factors detected. Does not meet Graham's margin of safety requirements.
⚠ Risk Factors
- Earnings yield not sufficiently above bond yield
- Stock price exceeds Graham Number — may be overvalued
- High P/E ratio suggests premium valuation
- Current ratio below Graham's 2.0 threshold
About this analysis: Based on Benjamin Graham's margin of safety principles from The Intelligent Investor and Security Analysis. A positive margin of safety indicates the stock may be trading below its estimated intrinsic value.
Financial Health & Signals
Piotroski F-Score, Owner Earnings, Earnings Quality, and Shareholder Yield
Piotroski F-Score
Excellent financial health across profitability, leverage, and efficiency.
Owner Earnings (2025)
Earnings Quality (2025)
Cash flow roughly in line with earnings — normal quality.
Shareholder Yield (2025)
Moderate — some capital return.
Historical Valuation
Where the current valuation sits within its own 5-year range
How to read this: These gauges show where the current P/E and P/B ratios fall within their own -year range. A low percentile suggests the stock is historically cheap on that metric; a high percentile suggests it's historically expensive. Compare with the company's growth trajectory to determine if the valuation is justified.
Reverse DCF Calculator
What growth rate is the market pricing in?
The market expects strong growth. The stock may be fairly valued if the company delivers, but there is limited room for disappointment.
How to read this: A reverse DCF works backwards from the current stock price to reveal what annual FCF growth rate the market is implicitly assuming. Compare this implied rate against the company's historical growth and your own expectations — if the market expects more growth than you think is realistic, the stock may be overvalued.
ROIC vs. WACC
Return on Invested Capital versus Weighted Average Cost of Capital
How to read this: ROIC measures how efficiently a company turns invested capital into profits. WACC is the minimum return investors demand. When ROIC consistently exceeds WACC, management is creating value — a hallmark of a durable competitive advantage (moat). A declining ROIC trending toward WACC may signal moat erosion.
Capital Allocation
How the company has deployed its cash over 5 years
How to read this: This chart shows how the company allocated capital each fiscal year across four categories. Companies that consistently invest in CapEx and return cash via dividends often signal durable competitive advantages. Heavy share buybacks at elevated valuations can destroy shareholder value.
7 Powers Analysis
Hamilton Helmer's strategic moat framework applied to Apple Inc (Technology)
Operating margin moved from 29.8% to 32.0% over 5 years (+2.2pp).
Awaiting AI analysis
Requires non-financial data (user counts, engagement metrics) not available in SEC filings.
Awaiting AI analysis
Requires identifying a specific incumbent competitor for comparison — a qualitative judgment.
Awaiting AI analysis
Gross margin volatility 1.9pp (avg 44.5%) with 8.7% 5Y revenue growth.
Awaiting AI analysis
Gross margin 46.9% vs peers median 30% (1.55x). Inventory turnover 34.0x — strong brand pull.
Awaiting AI analysis
Tangible ROA 31.2% vs peers median 6% (5.3x).
Awaiting AI analysis
Avg ROIC 57.1% vs WACC 10.4% (alpha +46.7pp, σ 4.6pp).
Awaiting AI analysis
How to read this: The 7 Powers framework (Hamilton Helmer) identifies seven empirical sources of lasting business value. Each power shows both a quantitative score (from financial data) and a qualitative score (from AI analysis). The combined signal per power takes the more conservative of the two. Network Effects and Counter-Positioning can only be assessed qualitatively. When AI analysis is available, the overall moat signal reflects all 7 powers combined.
Insider Transactions
Open-market purchases and sales by company insiders (past 12 months)
| Date | Insider | Type | Shares | Price |
|---|---|---|---|---|
| 2026-05-27 | Arthur D. Levinson | Sell | 50,000 | $311.02 |
| 2026-05-08 | Ben Borders | Sell | 1,274 | $290.00 |
| 2026-05-06 | Arthur D. Levinson | Sell | 100,473 | $285.04 |
| 2026-05-06 | Arthur D. Levinson | Sell | 149,527 | $284.57 |
| 2026-04-23 | Kevan Parekh | Sell | 1,534 | $275.00 |
How to read this: Insider buying on the open market is one of the strongest bullish signals — executives are spending their own money because they believe the stock is undervalued. Selling alone is less informative (insiders sell for many reasons), but heavy selling by multiple insiders can signal caution.