Apple Inc. (AAPL) Stock Analysis — Graham Number, Scorecard & Financials

NASDAQ · Technology

Apple Inc.

AAPL · Consumer Electronics

$276.99

▼ -3.26 (-1.16%)

Data cached · refreshes every 10 min

Mr. Market is currently offering Apple Inc. at $276.99.

The business passes only 3 of 7 of Graham's defensive criteria — well below his required standard.

Overall Grade

Defensive

Enterprising

Profitability A

Gross Profit Margin 46.9%

Operating Margin 32.0%

Net Income Margin 26.9%

Fin. Health D

Years to Pay Off Debt 0.9 yrs

Working Capital vs Long-Term Debt -$96.0B

Working Capital -$17.7B

Valuation F

Margin of Safety 0.0%

Price-to-Book 55.10x

Cash Flow A

Free Cash Flow $98.8B

CapEx % of Net Income 11.4%

Owner Earnings $136.4B

3/7

Graham Score

Speculative

Defensive — Graham's strict criteria (P/B, P/E, dividends, stability) · Enterprising — Profitability & cash flow focused, accepts higher valuations for quality

Market Data

Market Cap $4,062.8B

Enterprise Value $4,130.7B

P/E (TTM) 33.53

Dividend Yield 0.37%

Exchange NASDAQ

Key Margins

Gross Profit 46.9%

Operating Margin 32.0%

Net Margin 26.9%

Company Info

Sector Technology

Industry Consumer Electronics

Employees 166000

Country United States

Visit website

📖

Full Graham Analysis

Mr. Market is currently offering Apple Inc. at $276.99.

The business passes only 3 of 7 of Graham's defensive criteria — well below his required standard.

At $276.99, the stock trades at a 853% premium to its Graham Number of $29.05. Graham would consider this price speculative.

There is no margin of safety at the current price. Graham would advise patience and waiting for a better entry point.

Negative NCAV — liabilities exceed current assets. Common in capital-return businesses (buybacks, debt-funded dividends) and capital-intensive industries. Not automatically a warning sign..

Conclusion: By Graham's standards, this stock is speculative at its current price. The intelligent investor would look elsewhere or wait.

About Apple Inc.

Apple Inc. designs, manufactures, and markets smartphones, personal computers, tablets, wearables, and accessories worldwide. The company offers iPhone, a line of smartphones; Mac, a line of personal computers; iPad, a line of multi-purpose tablets; and wearables, home, and accessories comprising AirPods, Apple Vision Pro, Apple TV, Apple Watch, Beats products, and HomePod, as well as Apple branded and third-party accessories. It also provides AppleCare support and cloud services; and operates various platforms, including the App Store that allow customers to discover and download applications and digital content, such as books, music, video, games, and podcasts, as well as advertising services include third-party licensing arrangements and its own advertising platforms. In addition, the company offers various subscription-based services, such as Apple Arcade, a game subscription service; Apple Fitness+, a personalized fitness service; Apple Music, which offers users a curated listening experience with on-demand radio stations; Apple News+, a subscription news and magazine service; Apple TV, which offers exclusive original content and live sports; Apple Card, a co-branded credit card; and Apple Pay, a cashless payment service, as well as licenses its intellectual property. The company serves consumers, and small and mid-sized businesses; and the education, enterprise, and government markets. It distributes third-party applications for its products through the App Store. The company also sells its products through its retail and online stores, and direct sales force; and third-party cellular network carriers and resellers. The company was formerly known as Apple Computer, Inc. and changed its name to Apple Inc. in January 2007. Apple Inc. was founded in 1976 and is headquartered in Cupertino, California.

Showing Key Metrics

Income Highlights

Metric	2025	2024	2023	2022	2021
Gross Profit %	46.9% ▲	46.2%	44.1%	43.3%	N/A
Operating Margin %	32.0% ▲	31.5%	29.8%	30.3%	N/A
Net Income %	26.9% ▲	24.0%	25.3%	25.3%	N/A
Diluted EPS	7.46 ▲	6.08	6.13	6.11	N/A

Balance Sheet Highlights

Metric	2025	2024	2023	2022	2021
Total Assets	$359.2B	$365.0B	$352.6B	$352.8B	N/A
Total Debt	$98.7B ↓	$106.6B	$111.1B	$132.5B	N/A
Working Capital	-$17.7B ▲	-$23.4B	-$1.7B	-$18.6B	N/A
Years to Pay Debt	0.88	1.14	1.15	1.33	N/A

Cash Flow Highlights

Metric	2025	2024	2023	2022	2021
Free Cash Flow	$98.8B ▼	$108.8B	$99.6B	$111.4B	N/A
Owner Earnings	$136.4B	$114.6B	$119.5B	$121.6B	N/A
CapEx % of Net Income	11.4%	10.1%	11.3%	10.7%	N/A

Income Statement

	2025	2024	2023	2022	2021
Tax Rate For Calcs	0	0	0	0
Normalized EBITDA	144,748,000	134,661,000	125,820,000	130,541,000
Net Income From Continuing Operation Net Minority Interest	112,010,000	93,736,000	96,995,000	99,803,000
Reconciled Depreciation	11,698,000	11,445,000	11,519,000	11,104,000
Reconciled Cost Of Revenue	220,960,000	210,352,000	214,137,000	223,546,000
EBITDA	144,748,000	134,661,000	125,820,000	130,541,000
EBIT	133,050,000	123,216,000	114,301,000	119,437,000
Net Interest Income			-183,000	-106,000	198,000
Interest Expense			3,933,000	2,931,000	2,645,000
Interest Income			3,750,000	2,825,000	2,843,000
Normalized Income	112,010,000	93,736,000	96,995,000	99,803,000
Net Income From Continuing And Discontinued Operation	112,010,000	93,736,000	96,995,000	99,803,000
Total Expenses	283,111,000	267,819,000	268,984,000	274,891,000
Total Operating Income As Reported	133,050,000	123,216,000	114,301,000	119,437,000
Diluted Average Shares	15,004,697	15,408,095	15,812,547	16,325,819
Basic Average Shares	14,948,500	15,343,783	15,744,231	16,215,963
Diluted EPS	0	0	0	0
Basic EPS	0	0	0	0
Diluted NI Availto Com Stockholders	112,010,000	93,736,000	96,995,000	99,803,000
Net Income Common Stockholders	112,010,000	93,736,000	96,995,000	99,803,000
Net Income	112,010,000	93,736,000	96,995,000	99,803,000
Net Income Including Noncontrolling Interests	112,010,000	93,736,000	96,995,000	99,803,000
Net Income Continuous Operations	112,010,000	93,736,000	96,995,000	99,803,000
Tax Provision	20,719,000	29,749,000	16,741,000	19,300,000
Pretax Income	132,729,000	123,485,000	113,736,000	119,103,000
Other Income Expense	-321,000	269,000	-565,000	-334,000
Other Non Operating Income Expenses	-321,000	269,000	-565,000	-334,000
Net Non Operating Interest Income Expense			-183,000	-106,000	198,000
Interest Expense Non Operating			3,933,000	2,931,000	2,645,000
Interest Income Non Operating			3,750,000	2,825,000	2,843,000
Operating Income	133,050,000	123,216,000	114,301,000	119,437,000
Operating Expense	62,151,000	57,467,000	54,847,000	51,345,000
Research And Development	34,550,000	31,370,000	29,915,000	26,251,000
Selling General And Administration	27,601,000	26,097,000	24,932,000	25,094,000
Gross Profit	195,201,000	180,683,000	169,148,000	170,782,000
Cost Of Revenue	220,960,000	210,352,000	214,137,000	223,546,000
Total Revenue	416,161,000	391,035,000	383,285,000	394,328,000
Operating Revenue	416,161,000	391,035,000	383,285,000	394,328,000

Balance Sheet

	2025	2024	2023	2022	2021
Ordinary Shares Number	14,773,260	15,116,786	15,550,061	15,943,425
Share Issued	14,773,260	15,116,786	15,550,061	15,943,425
Net Debt	62,723,000	76,686,000	81,123,000	96,423,000
Total Debt	98,657,000	106,629,000	111,088,000	132,480,000
Tangible Book Value	73,733,000	56,950,000	62,146,000	50,672,000
Invested Capital	172,390,000	163,579,000	173,234,000	170,741,000
Working Capital	-17,674,000	-23,405,000	-1,742,000	-18,577,000
Net Tangible Assets	73,733,000	56,950,000	62,146,000	50,672,000
Capital Lease Obligations			12,842,000	12,411,000	11,803,000
Common Stock Equity	73,733,000	56,950,000	62,146,000	50,672,000
Total Capitalization	152,061,000	142,700,000	157,427,000	149,631,000
Total Equity Gross Minority Interest	73,733,000	56,950,000	62,146,000	50,672,000
Stockholders Equity	73,733,000	56,950,000	62,146,000	50,672,000
Gains Losses Not Affecting Retained Earnings	-5,571,000	-7,172,000	-11,452,000	-11,109,000
Other Equity Adjustments	-5,571,000	-7,172,000	-11,452,000	-11,109,000
Retained Earnings	-14,264,000	-19,154,000	-214,000	-3,068,000
Capital Stock	93,568,000	83,276,000	73,812,000	64,849,000
Common Stock	93,568,000	83,276,000	73,812,000	64,849,000
Total Liabilities Net Minority Interest	285,508,000	308,030,000	290,437,000	302,083,000
Total Non Current Liabilities Net Minority Interest	119,877,000	131,638,000	145,129,000	148,101,000
Other Non Current Liabilities	41,549,000	45,888,000	34,391,000	21,737,000
Tradeand Other Payables Non Current		9,254,000	15,457,000	16,657,000	24,689,000
Long Term Debt And Capital Lease Obligation	78,328,000	85,750,000	95,281,000	109,707,000
Long Term Capital Lease Obligation			11,267,000	10,748,000	10,275,000
Long Term Debt	78,328,000	85,750,000	95,281,000	98,959,000
Current Liabilities	165,631,000	176,392,000	145,308,000	153,982,000
Other Current Liabilities	44,452,000	44,024,000	50,010,000	52,630,000
Current Deferred Liabilities	9,055,000	8,249,000	8,061,000	7,912,000
Current Deferred Revenue	9,055,000	8,249,000	8,061,000	7,912,000
Current Debt And Capital Lease Obligation	20,329,000	20,879,000	15,807,000	22,773,000
Current Capital Lease Obligation			1,575,000	1,663,000	1,528,000
Current Debt	20,329,000	20,879,000	15,807,000	21,110,000
Other Current Borrowings	12,350,000	10,912,000	9,822,000	11,128,000
Commercial Paper	7,979,000	9,967,000	5,985,000	9,982,000
Payables And Accrued Expenses	91,795,000	103,240,000	71,430,000	70,667,000
Current Accrued Expenses	8,919,000
Payables	82,876,000	95,561,000	71,430,000	70,667,000
Total Tax Payable	13,016,000	26,601,000	8,819,000	6,552,000
Income Tax Payable	13,016,000	26,601,000	8,819,000	6,552,000
Accounts Payable	69,860,000	68,960,000	62,611,000	64,115,000
Total Assets	359,241,000	364,980,000	352,583,000	352,755,000
Total Non Current Assets	211,284,000	211,993,000	209,017,000	217,350,000
Other Non Current Assets	62,950,000	55,335,000	46,906,000	39,053,000
Non Current Deferred Assets	20,777,000	19,499,000	17,852,000	15,375,000
Non Current Deferred Taxes Assets	20,777,000	19,499,000	17,852,000	15,375,000
Investments And Advances	77,723,000	91,479,000	100,544,000	120,805,000
Other Investments				120,805,000	127,877,000
Investmentin Financial Assets	77,723,000	91,479,000	100,544,000	120,805,000
Available For Sale Securities	77,723,000	91,479,000	100,544,000	120,805,000
Net PPE	49,834,000	45,680,000	43,715,000	42,117,000
Accumulated Depreciation	-76,014,000	-73,448,000	-70,884,000	-72,340,000
Gross PPE	125,848,000	119,128,000	114,599,000	114,457,000
Leases	15,091,000	14,233,000	12,839,000	11,271,000
Other Properties			10,661,000	10,417,000	10,087,000
Machinery Furniture Equipment	83,420,000	80,205,000	78,314,000	81,060,000
Land And Improvements	27,337,000	24,690,000	23,446,000	22,126,000
Current Assets	147,957,000	152,987,000	143,566,000	135,405,000
Other Current Assets	14,585,000	14,287,000	14,695,000	21,223,000
Inventory	5,718,000	7,286,000	6,331,000	4,946,000
Receivables	72,957,000	66,243,000	60,985,000	60,932,000
Other Receivables	33,180,000	32,833,000	31,477,000	32,748,000
Accounts Receivable	39,777,000	33,410,000	29,508,000	28,184,000
Cash Cash Equivalents And Short Term Investments	54,697,000	65,171,000	61,555,000	48,304,000
Other Short Term Investments	18,763,000	35,228,000	31,590,000	24,658,000
Cash And Cash Equivalents	35,934,000	29,943,000	29,965,000	23,646,000
Cash Equivalents	7,667,000	2,744,000	1,606,000	5,100,000
Cash Financial	28,267,000	27,199,000	28,359,000	18,546,000

Cash Flow

	2025	2024	2023	2022	2021
Free Cash Flow	98,767,000	108,807,000	99,584,000	111,443,000
Repurchase Of Capital Stock	-90,711,000	-94,949,000	-77,550,000	-89,402,000
Repayment Of Debt	-10,932,000	-9,958,000	-11,151,000	-9,543,000
Issuance Of Debt	4,481,000	0	5,228,000	5,465,000
Issuance Of Capital Stock					1,105,000
Capital Expenditure	-12,715,000	-9,447,000	-10,959,000	-10,708,000
Interest Paid Supplemental Data			3,803,000	2,865,000	2,687,000
Income Tax Paid Supplemental Data	43,369,000	26,102,000	18,679,000	19,573,000
End Cash Position	35,934,000	29,943,000	30,737,000	24,977,000
Beginning Cash Position	29,943,000	30,737,000	24,977,000	35,929,000
Changes In Cash	5,991,000	-794,000	5,760,000	-10,952,000
Financing Cash Flow	-120,686,000	-121,983,000	-108,488,000	-110,749,000
Cash Flow From Continuing Financing Activities	-120,686,000	-121,983,000	-108,488,000	-110,749,000
Net Other Financing Charges	-6,071,000	-5,802,000	-6,012,000	-6,383,000
Cash Dividends Paid	-15,421,000	-15,234,000	-15,025,000	-14,841,000
Common Stock Dividend Paid	-15,421,000	-15,234,000	-15,025,000	-14,841,000
Net Common Stock Issuance	-90,711,000	-94,949,000	-77,550,000	-89,402,000
Common Stock Payments	-90,711,000	-94,949,000	-77,550,000	-89,402,000
Common Stock Issuance					1,105,000
Net Issuance Payments Of Debt	-8,483,000	-5,998,000	-9,901,000	-123,000
Net Short Term Debt Issuance	-2,032,000	3,960,000	-3,978,000	3,955,000
Net Long Term Debt Issuance	-6,451,000	-9,958,000	-5,923,000	-4,078,000
Long Term Debt Payments	-10,932,000	-9,958,000	-11,151,000	-9,543,000
Long Term Debt Issuance	4,481,000	0	5,228,000	5,465,000
Investing Cash Flow	15,195,000	2,935,000	3,705,000	-22,354,000
Cash Flow From Continuing Investing Activities	15,195,000	2,935,000	3,705,000	-22,354,000
Net Other Investing Changes	-1,480,000	-1,308,000	-1,337,000	-2,086,000
Net Investment Purchase And Sale	29,390,000	13,690,000	16,001,000	-9,560,000
Sale Of Investment	53,797,000	62,346,000	45,514,000	67,363,000
Purchase Of Investment	-24,407,000	-48,656,000	-29,513,000	-76,923,000
Net Business Purchase And Sale				-306,000	-33,000
Purchase Of Business				-306,000	-33,000
Net PPE Purchase And Sale	-12,715,000	-9,447,000	-10,959,000	-10,708,000
Purchase Of PPE	-12,715,000	-9,447,000	-10,959,000	-10,708,000
Operating Cash Flow	111,482,000	118,254,000	110,543,000	122,151,000
Cash Flow From Continuing Operating Activities	111,482,000	118,254,000	110,543,000	122,151,000
Change In Working Capital	-25,000,000	3,651,000	-6,577,000	1,200,000
Change In Other Working Capital				478,000	1,676,000
Change In Other Current Liabilities	-11,076,000	15,552,000	3,031,000	6,110,000
Change In Other Current Assets	-9,197,000	-11,731,000	-5,684,000	-6,499,000
Change In Payables And Accrued Expense	902,000	6,020,000	-1,889,000	9,448,000
Change In Payable	902,000	6,020,000	-1,889,000	9,448,000
Change In Account Payable	902,000	6,020,000	-1,889,000	9,448,000
Change In Inventory	1,400,000	-1,046,000	-1,618,000	1,484,000
Change In Receivables	-7,029,000	-5,144,000	-417,000	-9,343,000
Changes In Account Receivables	-6,682,000	-3,788,000	-1,688,000	-1,823,000
Other Non Cash Items	-89,000	-2,266,000	-2,227,000	1,006,000
Stock Based Compensation	12,863,000	11,688,000	10,833,000	9,038,000
Deferred Tax				895,000	-4,774,000
Deferred Income Tax				895,000	-4,774,000
Depreciation Amortization Depletion	11,698,000	11,445,000	11,519,000	11,104,000
Depreciation And Amortization	11,698,000	11,445,000	11,519,000	11,104,000
Net Income From Continuing Operations	112,010,000	93,736,000	96,995,000	99,803,000

These metrics estimate what Apple Inc. is worth based on its fundamentals — independent of what the market currently prices it at. Graham's Fair Value and NCAV are conservative floors rooted in 1930s–60s principles. EPV assumes zero growth. None are price targets — they are reference points for judging whether the current price offers a margin of safety.

Graham's Fair Value

$29.05

Margin of Safety

Market Cap ÷ Company Value

2.06

P/B Ratio

55.10

Warren's Owner Earnings

$136.4B

Latest fiscal year

Graham's 7 Criteria

Defensive Investor Checklist

3/7 — Speculative Investor

✅ Adequate Size

$416.2B

vs > $1.5B revenue

❌ Strong Financial Condition

0.89x

vs Current Ratio > 2.0x

✅ Earnings Stability

No loss years (4 yrs data)

vs No negative EPS years

✅ Dividend Record

0.37%

vs Uninterrupted dividends

❌ Earnings Growth

+22.1% EPS growth

vs > 33% EPS growth

❌ Moderate P/E Ratio

33.5x

vs P/E ≤ 15.0x

❌ Moderate Price-to-Book

55.10x P/B (P/E×P/B: 1847.8)

vs P/B ≤ 1.5x | P/E × P/B ≤ 22.5

Net Current Asset Value

$-9.38

Negative NCAV — liabilities exceed current assets. Common in capital-return businesses (buybacks, debt-funded dividends) and capital-intensive industries. Not automatically a warning sign.

"Buy at two-thirds of net current assets." — Graham

Earnings Power Value

$100.79

Per share, no-growth floor. Compare to current price.

Cash Flow Analysis

Metric	2025	2024	2023	2022	2021
Capital Expenditure % of Net Income	11.4%	10.1%	11.3%	10.7%	N/A
Repurchase of Capital Stock	-$90.7B	-$94.9B	-$77.5B	-$89.4B	N/A
Free Cash Flow	$98.8B ▼	$108.8B ▲	$99.6B ▼	$111.4B •	N/A •
Warren's Owner Earnings	$136.4B	$114.6B	$119.5B	$121.6B	N/A

Peers & Industry Comparison

Consumer Electronics — Auto-detected peers

Company	Price	Market Cap	P/E	Gross Margin	Net Margin	Revenue
AAPL	$276.99	$4,062.8B	33.53	46.9%	26.9%	$416.2B
MSFT Microsoft Corporation	$414.95	$3,082.4B	24.7	68.3%	39.3%	$318.3B
GOOGL Alphabet Inc.	$383.18	$4,642.4B	29.2	60.4%	37.9%	$422.5B
SMSN.IL SAMSUNG ELECTRONICS CO LTD (ATT	$3,862.00	N/A	40.0	32.0%	13.1%	Foreign listing

"The management of a business is its most important single factor — more important than market position, patents, or financial structure."

— Benjamin Graham

Capital Allocation & Alignment

Insider Ownership

1.64%

Low — management has little skin in the game

Return on Equity (ROE)

151.9%

Excellent — management generates strong returns on equity

Return on Assets (ROA)

31.2%

Strong — management uses assets efficiently

Share Buybacks (Latest Year)

$90.7B

Management is returning capital to shareholders via buybacks

Debt Trend YoY

-7.5% YoY

Debt is declining — management is deleveraging

Leadership Team

Timothy Cook

CEO & Director

Age 64

Pay: $16,759,518

0.015% of net income

Kevan Parekh

Senior VP & CFO

Age 53

Pay: $4,034,174

0.004% of net income

Sabih Khan

Senior VP & Chief Operating Officer

Age 58

Pay: $5,021,905

0.004% of net income

Deirdre O'Brien

Senior Vice President of Retail & People

Age 58

Pay: $5,037,867

0.004% of net income

Kristin Huguet Quayle

Vice President of Worldwide Communications

Top Institutional Holders

Institution	% Owned	Shares
Vanguard Group Inc	9.72%	1,426,283,914
Blackrock Inc.	7.86%	1,154,665,731
State Street Corporation	4.11%	604,056,505
Geode Capital Management, LLC	2.44%	358,032,517
FMR, LLC	2.09%	307,397,264
Morgan Stanley	1.57%	230,483,035
Berkshire Hathaway, Inc	1.55%	227,917,808
JPMORGAN CHASE & CO	1.54%	225,419,111

Risk Analysis

Beta (Market Risk)

1.06

Moderate volatility — moves slightly more than market

Short Interest

0.9% of float

Low short interest — market is not heavily bearish

Debt-to-Equity

0.80x

Conservative balance sheet — low financial risk

Current Ratio

1.07x

Adequate liquidity

52-Week Price Range

Low: $193.25 Current: $276.99 High: $288.62

Currently at 88% of 52-week range

360investing

Apple Inc.

Metric Explanations

Full Graham Analysis

About Apple Inc.

Income Highlights

Balance Sheet Highlights

Cash Flow Highlights

Graham's Fair Value

Warren's Owner Earnings

Graham's 7 Criteria

Graham's 7 Criteria — Explained

Net Current Asset Value

Earnings Power Value

Cash Flow Analysis

Peers & Industry Comparison

Capital Allocation & Alignment

Leadership Team

Top Institutional Holders

Risk Analysis