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Apple Inc. (AAPL)

Company Dividend Discount ModelIndustry: Consumer ElectronicsSector: Technology

Valuation Snapshot

Stable Growth$120.47 - $232.38$165.16
Multi-Stage$110.42 - $120.86$115.54
Blended Fair Value$140.35
Current Price$255.46
Upside-45.06%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2025202420232022202120202019201820172016
DPS1.83%2.92%1.031.011.000.990.960.940.940.910.850.81
YoY Growth--1.23%1.39%1.24%2.59%2.74%-0.27%2.97%7.39%5.09%5.09%
Dividend Yield--0.40%0.40%0.52%0.66%0.55%0.71%1.30%2.33%2.01%2.87%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)112,010.00
(-) Cash Dividends Paid (M)15,421.00
(=) Cash Retained (M)96,589.00
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)22,402.0014,001.258,400.75
Cash Retained (M)96,589.0096,589.0096,589.00
(-) Cash Required (M)-22,402.00-14,001.25-8,400.75
(=) Excess Retained (M)74,187.0082,587.7588,188.25
(/) Shares Outstanding (M)15,039.9715,039.9715,039.97
(=) Excess Retained per Share4.935.495.86
LTM Dividend per Share1.031.031.03
(+) Excess Retained per Share4.935.495.86
(=) Adjusted Dividend5.966.526.89
WACC / Discount Rate9.08%9.08%9.08%
Growth Rate3.94%4.94%5.94%
Fair Value$120.47$165.16$232.38
Upside / Downside-52.84%-35.35%-9.04%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)112,010.00117,542.61123,348.51129,441.17135,834.78142,544.19146,820.52
Payout Ratio13.77%29.01%44.26%59.51%74.75%90.00%92.50%
Projected Dividends (M)15,421.0034,103.8354,594.6877,026.57101,541.26128,289.77135,808.98

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.08%9.08%9.08%
Growth Rate3.94%4.94%5.94%
Year 1 PV (M)30,967.0431,264.9731,562.91
Year 2 PV (M)45,013.5645,883.8746,762.52
Year 3 PV (M)57,667.3659,347.8761,060.73
Year 4 PV (M)69,028.5271,723.5974,496.82
Year 5 PV (M)79,190.7683,074.2487,108.60
PV of Terminal Value (M)1,378,819.461,446,436.131,516,679.88
Equity Value (M)1,660,686.701,737,730.691,817,671.46
Shares Outstanding (M)15,039.9715,039.9715,039.97
Fair Value$110.42$115.54$120.86
Upside / Downside-56.78%-54.77%-52.69%

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