How Are Analysts Rating Apple?



What’s Apple’s economic value?

Apple (AAPL) boasts a total enterprise value (or EV) of $987.3 billion. In comparison, its hardware peers Nokia (NOK), Hewlett Packard Enterprise (HPE), Ericsson (ERIC), and Cisco Systems (CSCO) boast EVs of $28.1 billion, $28.3 billion, $23.6 billion, and $181.8 billion, respectively.

Apple has an EV-to-adjusted trailing-12-month EBITDA multiple of 12.9x. Its EV-to-EBITDA multiple for the current year is projected to be 12.3x. Apple’s EBITDA margin for 2017 is 30%.

Looking deeper into Apple’s EV ratios reveals an EV-to-sales multiple for the trailing 12 months of 3.9x. The company’s EV-to-projected sales multiple for next year is 3.6x.

The company’s trailing-12-month EV-to-cash flow multiple is 14.7x, and its trailing-12-month EV-to-free cash flow multiple is 18.4x.

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Inside Apple’s price and valuation multiples

Apple’s 2017 book value per share of $25.3 compares to its expected book value per share of $23.5 for 2018. Apple shares are trading at a price-to-book value of 7.5x.

The company’s 2017 price-to-sales multiple of 3.8x also compares to its estimated 2018 price-to-sales multiple of 3.7x.

A look at Apple’s EBITDA numbers

Apple’s EBITDA fell 11% to $76.4 billion last year. Analysts expect the company to post EBITDA of $80.4 billion this year.

Apple’s shares are changing hands at price-to-EBITDA multiple of 15.5x.

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Eye on Apple’s debt position

The company has total debt of $121.8 billion, with $20.5 billion in short-term debt and $101.4 billion in long-term debt. With total capital of $248.7 billion, the company’s total debt-to-total capital is 48.9%. Its debt-to-asset and debt-to-equity multiples are 0.33 and 96.03, respectively.

Relative strength index

For the last 14 days, Apple has a relative strength index (or RSI) of 74 compared to the RSIs of 30, 29, 28, and 52 recorded by Nokia, Hewlett Packard Enterprise, Ericsson, and Cisco Systems, respectively, within the same period.


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