Apple Inc. (AAPL) DCF Valuation
Transparent DCF models put Apple Inc. (AAPL)'s fair value in a range of $112.54 – $151.34 — the low end is TGM's conservative base case (5% FCF growth, 10% discount), the high end the analyst consensus (FMP). Today's price of $290.55 sits above that range — by these conservative assumptions it looks richly valued; the reverse-DCF below is the better lens for a high-growth name.
Reverse DCF: at today's $290.55, the market is pricing in roughly +17.6%/yr free-cash-flow growth over the next decade (at a 10% required return) — versus its actual 5-year FCF CAGR of +7.4%. The price is betting on acceleration above its track record.
Current Price
$290.55
Fair-Value Range
$112.54 – $151.34
Market-Implied Growth
+17.6%/yr
vs +7.4% 5Y actual
AAPL DCF Fair Value Calculator
Edit the assumptions to see how they change the estimated fair value. Illustrative model — not investment advice. Defaults to a conservative base case; the analyst (FMP) DCF, where available, is shown as a reference below.
Base inputs: FCF $104.7B · 14.69B shares · net debt $62.7B
Estimated Fair Value
$112.54
-61.3% vs $290.55
Sensitivity — fair value by discount rate × terminal growth
How the estimated fair value shifts with the discount rate (WACC) and terminal growth, holding your 5.0%/yr FCF growth and 10-year horizon fixed. Green = above today's $290.55; red = below. Your current case is outlined.
| WACC ↓ / Terminal → | 1.50% | 2.00% | 2.50% | 3.00% | 3.50% |
|---|---|---|---|---|---|
| 8.0% | $141 | $148 | $157 | $168 | $181 |
| 9.0% | $120 | $126 | $131 | $138 | $146 |
| 10.0% | $105 | $108 | $113 | $117 | $123 |
| 11.0% | $92.56 | $95.21 | $98.18 | $102 | $105 |
| 12.0% | $82.68 | $84.67 | $86.87 | $89.32 | $92.06 |
About Apple Inc.
Apple Inc. is a global technology corporation that specializes in the conceptualization, production, and sale of a diverse suite of electronic devices. Its comprehensive hardware lineup features the well-known iPhone smartphones, Mac personal computers, and versatile iPad tablets. The company also supplies a range of wearables, smart home products, and accessories, including AirPods, Apple TV, Apple Watch, items from the Beats brand, and HomePod speakers. Beyond its device offerings, Apple delivers essential support services like AppleCare and robust cloud solutions. It oversees key digital platforms, prominently the App Store, which acts as a central hub for customers to discover and download countless applications and digital content, from e-books and music to videos, games, and podcasts. The company also generates revenue via advertising, leveraging both its proprietary ad platforms and third-party licensing deals. Apple's ecosystem is further bolstered by a wide array of subscription-based services: Apple Arcade for gaming, Apple Fitness+ for personalized wellness, Apple Music for curated audio experiences and on-demand radio, Apple News+ for access to news and magazines, and Apple TV+ for exclusive original video programming. Its financial services portfolio includes the co-branded Apple Card and the mobile payment system, Apple Pay. Additionally, Apple strategically licenses its intellectual property. The company serves a broad clientele that spans individual consumers, small and medium-sized enterprises, as well as institutional clients in the education, corporate, and governmental sectors. Products are distributed through a multi-channel strategy, utilizing Apple's own physical retail locations and online storefronts, a dedicated direct sales team, and collaborations with external partners such as mobile network providers, wholesalers, general retailers, and authorized resellers. The App Store additionally functions as the primary conduit for third-party applications designed for its devices. Founded in 1976, Apple Inc. is headquartered in Cupertino, California.
- Sector
- Technology
- Industry
- Consumer Electronics
- CEO
- Timothy D. Cook