Apple Inc (AAPL) stock analysis
Apple Inc (AAPL) clears 2 of this site's 8 mechanical value filters, 5 of 8 Buffett-style checks and 3 of 5 Lynch-style checks. At $348.22 it trades 115.9% above this site's neutral DCF value (a margin of safety of -115.9%). Its earnings quality rates Strong and it returns +1.9% to shareholders net of dilution. Figures are as of October 23, 2026, from SEC filings and market data refreshed weekly; this is educational analysis, not investment advice.
Data as of October 23, 2026. Refreshed weekly from SEC filings and market data.
What does Apple do?
Apple designs and sells consumer devices and the services that run on them. The iPhone is its largest product; the App Store, iCloud, Apple Music and Apple TV+ add recurring subscription and fee revenue.
Brands and businesses it owns
- iPhone
- iPad
- Mac
- Apple Watch
- AirPods
- App Store
- iCloud
- Apple Music
- Apple TV+
- Beats
What stands out about Apple?
- The share price implies 27.9% yearly growth. At $348.22, AAPL's free cash flow of $9.45 per share would have to grow 27.9% a year, fading to 2.5% by year 10, for this site's DCF (10% discount rate) to match the price. This site's baseline starts at 8%, so the price asks for more growth than the baseline. Change the assumptions.
- Misses 4 of the 8 value filters. It fails Trailing P/E < 25 (39.08), PEG Ratio < 1.5 (2.82) and Price/Book < 8 (46.86) and 1 more; the other 2 pass and 2 were not evaluated. See every filter.
- The margin of safety is falling. It went from -108% on Oct 7 to -116% on Oct 23 across 5 weekly readings. See the trend.
- Weakest against peers: dividend yield. At 0.31% (peer median 1.04%) it ranks 16th of 17 among technology stocks this site tracks. See the ranking.
- Held by investors this site follows. Warren Buffett (22.0% of its portfolio), George Soros (2.5% of its portfolio) and Li Lu (0.9% of its portfolio), from their latest 13F filings. See Superinvestors.
How has Apple's share price moved?
The interactive price chart needs JavaScript.
Is Apple undervalued? The value diligence check
Every value-investing signal this site computes for this stock, gathered in one place: the same real numbers from the tools below, not a new score.
- Margin of safety (DCF) -115.9%
- P/E vs. its own history 39.1x · at/above its priciest point Real range: 24.8x–37.4x over 5 years (net income per diluted share from each fiscal year's 10-K, paired with the real closing price at that fiscal year-end).
- Wall St. analyst rating Buy · 3.76/5 49 analysts this month: 11 strong buy, 20 buy, 14 hold, 3 sell, 1 strong sell (Finnhub). Down from 3.77 last month.
- Altman Z″-Score (bankruptcy risk) 2.31 · Grey zone
- Earnings quality (is the profit real?) Strong · all 5 checks clean Beneish M-score −2.29 · accruals 0.1% of assets · 112% of profit arrived as cash · stock comp 3.1% of revenue · share count −2.6% a year. From the latest 10-K (year to Sep 2025) - see the Earnings Quality Screener for how each check is scored.
- Shareholder yield (cash back to owners) +1.9% net Latest fiscal year (2025): dividends 0.3% + buybacks 1.8% − stock comp 0.3%, as a share of today's market cap. Over 14 years its split-adjusted share count fell 43%. See Shareholder Yield Leaders.
- Capital needed to grow (See's test) None needed · capital fell while profit grew Operating profit $64B → $124B, capital needed $11B → −$7.6B, 2016–2025 (3-year averages); its capital is negative: customers and suppliers fund it. Buffett's See's Candies needed $0.42 per $1 of new profit, FlightSafety $3.20, a typical grower about $5. See Capital-Light Compounders.
- PEG (growth at a reasonable price) 2.82 · Well above fair P/E 39.1× ÷ 13.8% a year of growth behind it. 325th lowest of 447 stocks with a usable PEG. Lynch's fair value is a PEG of 1; a very high PEG usually means almost no growth, a very low one a profit spike. See PEG Ratio Ranking.
- Compounder lenses (4) 2 of 4 · misses capital-light, price Capital-light growth: not cleared (profit grew 1.9×, under 2×); Profit is real: cleared; Cash to owners: cleared; Fair price (PEG): not cleared (PEG 2.82, over 1.5). See Compounders at a Fair Price, which also lets you move the PEG bar.
- Value trap check Clear
- Munger's Inversion Check 3 flags
- Standing vs. sector peers 2 of 7 measures above the median Compared with the 43 other technology stocks this site tracks: 2 in the top third, 2 in the bottom third.
- Dividend payout sustainability 0/6 · clean
How does Apple compare with its peers?
2 of 7 measures sit above the median of the 43 other technology stocks tracked here, 2 in the top third and 2 in the bottom third.
- P/E ratiolower is cheaper · peer median 26.0× 39.1× ✕27th of 39
- Free-cash-flow yieldhigher is cheaper · peer median 3.8% 2.7% –28th of 44
- Return on equityhigher is better · peer median 24% 137% ✓6th of 44
- Net marginhigher is better · peer median 16.9% 27.6% ✓12th of 44
- Revenue growthhigher is better, year on year · peer median 19.1% 14.2% –28th of 44
- Debt / equitylower is safer · peer median 0.60 0.78 –27th of 44
- Dividend yieldamong dividend payers · peer median 1.04% 0.31% ✕16th of 17
Peers are the stocks this site tracks in the same sector group, not every listed competitor. The bar runs from the weakest peer (left) to the strongest (right); the tick is the middle. Measures that don't apply to a sector (cash-flow yield for banks, debt for financials) are left out.
What would Buffett & Lynch say?
Buffett's checklist is built around durable, profitable businesses bought at sensible prices, and AAPL doesn't clear enough of it yet. In its favor: AAPL is currently earning a strong return on shareholders' equity, and has kept that profitability up over five years, not just this year, converts sales into profit at healthy margins, has grown earnings per share at a solid clip over five years, and earns many times its interest expense, so debt service isn't a worry. Where it comes up short: AAPL carries more debt relative to equity than he typically tolerates, is trading above what a conservative discounted-cash-flow estimate says it's worth right now, and trades rich relative to owner earnings, the real cash the business could pay out.
- ROE (TTM) > 11% ✓
- ROE (5yr avg) > 11% ✓
- Debt/Equity < 0.5 ✕
- Pretax margin > 15% ✓
- EPS growth (5yr) > 7% ✓
- Interest coverage > 5x ✓
- Trading below intrinsic value (DCF) ✕
- Price vs. owner earnings < 25x ✕
- Bonus: returning capital via buybacks FY2025
Lynch looked for growth stories that weren't overpriced for that growth, and AAPL falls short of his bar. In its favor: AAPL is growing earnings 20-50% a year, his classic fast-grower zone, isn't asking too much even by a fast grower's usual richer multiple, and is generating real cash to back up a fast grower's higher price tag. Where it comes up short: AAPL doesn't clear the tighter PEG bar a fast grower needs to justify its pace, and is leaning on more debt than he liked a growth story to carry.
- PEG < 1 (stricter for fast growers) ✕
- EPS growth 20%-50% ✓
- Debt/Equity < 0.5 ✕
- P/E < 40 ✓
- Price/FCF < 40 ✓
Quantitative approximations of each investor's documented approach, not endorsed by either investor or their estates - commentary, not this site's actual ranking criteria. Buffett never published a numeric checklist: only 2 of his 8 checks here trace to his own documented concepts ("owner earnings," from his 1986 shareholder letter, and "price is what you pay, value is what you get," his case against fixed P/E/P/B ceilings) - the other 6 (ROE, debt, margins, growth, interest coverage) use commonly-cited thresholds that are not numbers he himself published. The 8 hard filters below (plus the Munger check and Graham margin of safety) are this site's real, mechanical screen and are computed completely independently of the checklists above.
Berkshire Hathaway's own filing
From Berkshire Hathaway's SEC 13F-HR filing dated 2026-08-14, compared with its 2026-05-15 filing - its own disclosed position, separate from this site's Buffett-style checklist above. 13F filings cover only U.S.-listed equity holdings and can lag the real portfolio by up to 45 days.
Which of the 8 value filters does Apple pass?
- Market Cap > $25B $5.04T
- Trailing P/E < 25 39.08
- PEG Ratio < 1.5 2.82
- Price/Book < 8 46.86
- Price/Sales < 7 10.79
- EPS Growth YoY > -5% +29.1%
- vs 50-day MA (±12%) Not evaluated †
- vs 200-day MA (±12%) Not evaluated †
What is Apple's margin of safety?
-108% on 2026-10-07 → -116% on 2026-10-23 (5 weekly readings).
Where is Apple in its 52-week range?
What is the short interest in Apple?
120,763,539 shares short as of 2026-09-30 (FINRA settlement date). Reported twice a month, so this only changes roughly every two weeks, not daily.
What could go wrong with Apple? Munger's inversion check
"Invert, always invert." Instead of reasons to buy, these are reasons to hesitate, not a verdict, and not everything worth knowing about a business.
- Margin of safety, even in the bull case -28%
- Short interest under 5% of float 0.8%
- Passes most of the 6 fundamental filters 2/6 passed
- Price run-up backed by value, not just momentum +42% off 52wk low
- Debt/equity stable since 2016 0.61 → 1.23
Doesn't cover circle of competence, management quality, or accounting concerns: those need judgment, not data.
How much have Apple shareholders gained per year?
Earnings growth per share plus dividend.
An earnings-based proxy, not a stock-price total return - it doesn't capture multiple expansion/contraction or reinvested dividends. EPS from AAPL's own 10-K filings; dividend yield is the current trailing yield on today's price, from the same weekly fetch as the rest of this site.
What do Apple's 10-year financials show?
From AAPL's own 10-K filings (SEC EDGAR): up to the last 10 fiscal years. Press any year's bars for the exact figures.
A single trade isn't automatically bullish or bearish. Insiders sell for all kinds of personal reasons. Most recent filings for AAPL:
Frequently asked questions about Apple
What kind of company is Apple?
Apple designs and sells consumer devices and the services that run on them. The iPhone is its largest product; the App Store, iCloud, Apple Music and Apple TV+ add recurring subscription and fee revenue. Brands and businesses it owns include iPhone, iPad, Mac, Apple Watch, AirPods and App Store. This site groups it with Technology stocks.
Is Apple trading above or below its DCF value?
At $348.22, AAPL trades 115.9% above this site's neutral DCF value of $161.32 per share, a margin of safety of −115.9%. That DCF projects free cash flow for 10 years, with growth starting at 8% and fading to 2.5%, discounted at 10%; it is one set of assumptions, not a forecast. Test your own in the Intrinsic Value Calculator.
How many of this site's 8 value filters does Apple pass?
AAPL passes 2 of 8. It passes Market Cap > $25B ($5.04T) and EPS Growth YoY > -5% (+29.1%). It misses Trailing P/E < 25 (39.08), PEG Ratio < 1.5 (2.82), Price/Book < 8 (46.86) and Price/Sales < 7 (10.79). vs 50-day MA (±12%) and vs 200-day MA (±12%) were not evaluated, because the moving-average checks only run on stocks that clear the fundamentals first. The 8-filter list shows every stock that passes all of them.
Where is Apple trading compared with its 52-week range?
At $348.22, AAPL is at its 52-week high of $347.88, 41.8% above its 52-week low of $245.27.
Which well-known investors own Apple?
Among the investors whose SEC 13F filings this site tracks, Warren Buffett (22.0% of the portfolio; unchanged), George Soros (2.5% of the portfolio; added to the position), Li Lu (0.9% of the portfolio; unchanged) and Ray Dalio (0.4% of the portfolio; trimmed the position) held AAPL as of June 30, 2026. 13F filings cover only US-listed equities and arrive up to 45 days after the quarter ends, so they lag the real portfolios. See Superinvestors.
When does Apple report earnings next?
Apple's next earnings report is expected on November 2, 2026 after the market closes, with analysts expecting earnings of $2.02 per share. Dates come from the Finnhub earnings calendar and can move. In its last 4 quarters it beat the estimate 3 times, by an average of +1.7%.
Where do these numbers come from?
- Financial statements: Apple's 10-K annual report for the year ended Sep 27, 2025, filed Oct 31, 2025 (filing index). Every earlier year in the 10-year financials comes from the company's older 10-K filings, all listed on SEC EDGAR.
- Prices and market data: quotes, P/E and analyst ratings from Finnhub; daily price history and the 52-week range from Twelve Data, both refreshed weekly. Short interest comes from FINRA, reported twice a month.
- How to check a figure: click any number in the card above to see its exact source, and read the Editorial Standards for every rule behind the checks.
About this Apple Inc analysis
This page shows every value-investing check the site runs on Apple Inc (AAPL) in one place: the 8 mechanical filters, the Buffett and Lynch checklists, a margin of safety from a disclosed DCF, earnings quality, shareholder yield and how it ranks against its sector peers. The numbers come from SEC filings and public market data, refreshed weekly, and the same rules apply to every stock on the stock list. See Editorial Standards for the sources and the rules, or run your own filters in the stock screener.