Apple Inc.

Analyst Listing

The following analysts provide coverage for the subject firm as of May 2016:

Broker	Analyst	Analyst Email
Stifel Nicolaus	Aaron Rakers	rakersa@stifel.com
Mizuho Securities USA	Abhey Lamba	abhey.lamba@us.mizuho-sc.com
RBC Capital Markets	Amit Daryanani	amit.daryanani@rbccm.com
Brean Capital, LLC	Ananda Baruah	abaruah@breancapital.com
Oppenheimer	Andrew Uerkwitz	andrew.uerkwitz@opco.com
Pacific Crest Securities-KBCM	Andy Hargreaves	ahargreaves@pacific-crest.com
Pacific Crest	Andy Hargreaves	ahargreaves@pacific-crest.com
William Blair	Anil Doradla	adoradla@williamblair.com
Drexel Hamilton	Brian J. White	bwhite@drexelhamilton.com
BGC Financial, L.P.	Colin W. Gillis	cgillis@bgcpartners.com
Piper Jaffray	Gene Munster	gene.a.munster@pjc.com
Atlantic Equities	James Cordwell	j.cordwell@atlantic-equities.com
Nomura Research	Jeffrey Kvaal	jeffrey.kvaal@nomura.com
Rosenblatt Securities	Jun Zhang	jzhang@rblt.com
Credit Suisse	Kulbinder Garcha	kulbinder.garcha@credit-suisse.com
Needham	Laura Martin	lmartin@needhamco.com
Wells Fargo Securities	Maynard J. Um	maynard.um@wellsfargo.com
Maxim Group	Nehal Chokshi	maynard.um@wellsfargo.com
CRT Capital Group	Rob Cihra	rcihra@sterneageecrt.com
Cross Research	Shannon Cross	shannon@crossresearch.com
FBN Securities	Shebly Seyrafi	sseyrafi@fbnsecurities.com
Deutsche Bank Research	Sherri Scribner	sherri.scribner@db.com
Hilliard Lyons	Stephen Turner	sturner@hilliard.com
Canaccord Genuity	T. Michael Walkley	mwalkley@canaccordgenuity.com
Raymond James	Tavis C. McCourt	tavis.mccourt@raymondjames.com
BMO Capital Markets	Tim Long	tim.long@bmo.com
Cowen & Company	Timothy Arcuri	timothy.arcuri@cowen.com
Bernstein Research	Toni M. Sacconaghi Jr	sacconaghi@bernstein.com
BTIG	Walter Piecyk	wpiecyk@btig.com
Daiwa Securities Co. Ltd.	Yoko Yamada	yoko.yamada@us.daiwacm.com

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Primary Input Data

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Derived Input Data

Derived Input	Label	2015 Value	2016 Value	Equational Form
Net Operating Profit Less Adjusted Taxes	NOPLAT	43,310	38,197	$NOPLAT\, =\, EBIT\, x\, (1 \,-\, Avg \,\,Tax\,\, Rate\,\, on\,\, EBIT)$
Free Cash Flow	FCF	63,365	52,961	$FCF\,=NOPLAT\,+\,Non-Cash\,Expenses-\Delta NWC\,-\,NCS$
Tax Shield	TS	193	441	$TS\,=\,Interest\,\,Paid\,\,x\,\, Avg \,\,Tax\,\,Rate\,\, on\,\, Pre-Tax\,\, Income$
Invested Capital	IC	212,674	247,011	$IC\,=\,Fixed\,\,Operating\,\,Assets\,\,+\,\,Net\,\, Working\,\, Capital$
Return on Invested Capital	ROIC	20.36%	15.46%	$ROIC\,=\,\frac { NOPLAT }{ IC }$
Net Investment	NetInv	35,648	44,875	$NetInv\,=\,{ {IC}_{1}}-{{IC}_{0}}+Depreciation$
Investment Rate	IR	82.31%	117.48%	$IR\,=\,\frac {NetInv}{NOPLAT}$
Weighted Average Cost of Capital	WACC_Market	3.58%	7.56%	$WACC\,=\,\frac { E }{ V } { R }_{ E }\,+\,\frac { P }{ V } { R }_{ P }\,+\,\frac { D }{ V } { R }_{ D }\left( 1- Avg\,\, Tax\,\,Rate\,\,on\,\,Pre-Tax\,\,Income \right)$
Weighted Average Cost of Capital	WACC_Book	9.44%	9.15%
Enterprise value	EV_Market	610,131	624,143	$EV\,=\,Market\,\,Cap\,\,Equity\,+\,\,Long\,\,Term\,\,Debt\,-\,Cash$
Enterprise value	EV_Book	610,574	621,788
Long-Run Growth	g = IR x ROIC	16.76%	18.17%	Long-run growth rates of the income variable are used in the Continuing Value portion of the valuation models.
Long-Run Growth	g = % $\Delta$ GDP	2.50%	2.50%
Margin from Operations	M	28.81%	27.02%	$M\,\,=\,\,\frac{EBIT}{SALES}$
Depreciation/Amortization Rate	D	14.45%	15.21%	$D\,\,=\,\,\frac{D+A}{EBITDA}$

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Valuation Multiple Outcomes

The outcomes presented in this study are the result of original input data, derived data, and synthesized inputs.

Equational Form	Observed Value		Single-stage multiple g solution		Two-stage valuation model g solution
Equational Form	12/31/2015	12/31/2016	12/31/2015	12/31/2016	12/31/2015	12/31/2016
EV/SALES $\frac {EV}{Sales} \,= \,\frac{ROIC\, -\, g}{ROIC\,(WACC\,-\,g)}\,(1\,-\,T)\,(M)$	2.64	2.87	-5.40%	2.38%	-7.53%	3.87%
EV/EBITDA $\frac {EV}{EBITDA} \,= \,\frac{ROIC\, -\, g}{ROIC\,(WACC\,-\,g)}\,(1\,-\,T)\,(1\,-\,D)$	7.83	9.01	-5.40%	2.38%	-7.53%	3.87%
EV/NOPLAT $\frac {EV}{NOPLAT} \,= \,\frac{ROIC\, -\, g}{ROIC\,(WACC\,-\,g)}$	14.09	16.34	-5.40%	2.38%	-7.53%	3.87%
EV/FCF_OPS $\frac {EV}{FCF_{OPS}} \,= \,\frac{ROIC\, -\, g}{ROIC\,(WACC\,-\,g)}\,(1\,-\,T)$	9.63	11.78	-5.40%	2.38%	-7.53%	3.87%
EV/EBIT $\frac {EV}{EBIT} \,= \,\frac{ROIC\, -\, g}{ROIC\,(WACC\,-\,g)}\,(1\,-\,T)$	9.16	10.62	-5.40%	2.38%	-7.53%	3.87%
EV/IC $\frac {EV}{IC} \,= \,\frac{ROIC\, -\, g}{WACC\,-\,g}$	2.87	2.53	-5.40%	2.38%	-7.53%	3.87%