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
WACCMarket 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)
 WACCBook  9.44%  9.15%
Enterprise value
EVMarket 610,131 624,143 EV\,=\,Market\,\,Cap\,\,Equity\,+\,\,Long\,\,Term\,\,Debt\,-\,Cash
 EVBook  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.
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

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/FCFOPS

\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% 

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