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The global stock market experienced significant losses in late March due to the coronavirus outbreak. Apple (NASDAQ: AAPL) shares didn't escape the sell-off, with the AAPL share price dropping from its previous all-time high in February due to supplier constraints.
But Apple bounced back, and cruised to a new all-time high in early June on the back of new phone releases and praise from analysts about its in-house development capabilities.
In case you somehow didn't know, Apple is an American technology company based in California and one of the most valuable companies in the world. Apple is part of the world's “Big Tech” companies with Amazon, Microsoft, Google and Netflix. These are sometimes referred to as "FAANG" stocks.
Since the stock market crash in March caused by coronavirus, Apple's share price has had significant positive movement.
Its last market close was $364.11, which is 14.02% up on its pre-crash value of $313.05 and 71.26% up on the lowest point reached during the March crash when the shares fell as low as $212.61.
If you had bought $1,000 worth of Apple shares at the start of February 2020, those shares would have been worth $726.96 at the bottom of the March crash, and if you held on to them, then as of the last market close they'd be worth $1,179.72.
|52-week range||$192.58 - $372.38|
|50-day moving average||$326.2889|
|200-day moving average||$297.3971|
|Wall St. target price||$332.43|
|Dividend yield||$3.28 (0.89%)|
|Earnings per share (TTM)||$12.728|
The technical analysis gauge below displays real-time ratings for the timeframes you select. This is not a recommendation, however. It represents a technical analysis based on the most popular technical indicators: Moving Averages, Oscillators and Pivots. Finder might not concur and takes no responsibility.
|1 week (2020-06-25)||-0.20%|
|1 month (2020-06-02)||12.61%|
|3 months (2020-04-02)||48.66%|
|6 months (2020-01-02)||21.23%|
|1 year (2019-07-02)||79.60%|
|2 years (2018-07-02)||94.52%|
|3 years (2017-06-30)||152.82%|
|5 years (2015-07-02)||187.97%|
Valuing Apple stock is incredibly difficult, and any metric has to be viewed as part of a bigger picture of Apple's overall performance. However, analysts commonly use some key metrics to help gauge the value of a stock.
Apple's current share price divided by its per-share earnings (EPS) over a 12-month period gives a "trailing price/earnings ratio" of roughly 28x. In other words, Apple shares trade at around 28x recent earnings.
That's comparable to, say, the trailing 12-month P/E ratio for the NASDAQ 100 at the end of 2019 (27.29).
However, Apple's P/E ratio is best considered in relation to those of others within the consumer electronics industry or those of similar companies.
Apple's "price/earnings-to-growth ratio" can be calculated by dividing its P/E ratio by its growth – to give 1.9899. A low ratio can be interpreted as meaning the shares offer better value, while a higher ratio can be interpreted as meaning the shares offer worse value.
The PEG ratio provides a broader view than just the P/E ratio, as it gives more insight into Apple's future profitability. By accounting for growth, it could also help you if you're comparing the share prices of multiple high-growth companies.
However, it's sensible to consider Apple's PEG ratio in relation to those of similar companies.
Apple's EBITDA (earnings before interest, taxes, depreciation and amortisation) is $77.3 billion (£62.4 billion).
The EBITDA is a measure of a Apple's overall financial performance and is widely used to measure a its profitability.
To put Apple's EBITDA into context you can compare it against that of similar companies.
|Revenue TTM||$268 billion|
|Operating margin TTM||24.48%|
|Gross profit TTM||$98.4 billion|
|Return on assets TTM||12.38%|
|Return on equity TTM||62.09%|
|Market capitalisation||$1.6 trillion|
TTM: trailing 12 months
There are currently 34.8 million Apple shares held short by investors – that's known as Apple's "short interest". This figure is 1.9% up from 34.2 million last month.
There are a few different ways that this level of interest in shorting Apple shares can be evaluated.
Apple's "short interest ratio" (SIR) is the quantity of Apple shares currently shorted divided by the average quantity of Apple shares traded daily (recently around 36.3 million). Apple's SIR currently stands at 0.96. In other words for every 100,000 Apple shares traded daily on the market, roughly 960 shares are currently held short.
To gain some more context, you can compare Apple's short interest ratio against those of similar companies.
However Apple's short interest can also be evaluated against the total number of Apple shares, or, against the total number of tradable Apple shares (the shares that aren't held by "insiders" or major long-term shareholders – also known as the "float"). In this case Apple's short interest could be expressed as 0.01% of the outstanding shares (for every 100,000 Apple shares in existence, roughly 10 shares are currently held short) or 0.0079% of the tradable shares (for every 100,000 tradable Apple shares, roughly 8 shares are currently held short).
Such a low SIR usually points to an optimistic outlook for the share price, with fewer people currently willing to bet against Apple.
Find out more about how you can short Apple stock.
Environmental, social and governance (known as ESG) criteria are a set of three factors used to measure the sustainability and social impact of companies like Apple.
When it comes to ESG scores, lower is better, and lower scores are generally associated with lower risk for would-be investors.
Total ESG risk: 27.82
Socially conscious investors use ESG scores to screen how an investment aligns with their worldview, and Apple's overall score of 27.82 (as at 03/01/2020) is pretty good – landing it in it in the 36th percentile of companies rated in the same sector.
ESG scores are increasingly used to estimate the level of risk a company like Apple is exposed to within the areas of "environmental" (carbon footprint, resource use etc.), "social" (health and safety, human rights etc.), and "governance" (anti-corruption, tax transparency etc.).
To gain some more context, you can compare Apple's total ESG risk score against those of similar companies.
Environmental score: 3.05/100
Apple's environmental score of 3.05 puts it squarely in the 5th percentile of companies rated in the same sector. This could suggest that Apple is a leader in its sector terms of its environmental impact, and exposed to a lower level of risk.
Social score: 16.5/100
Apple's social score of 16.5 puts it squarely in the 5th percentile of companies rated in the same sector. This could suggest that Apple is a leader in its sector when it comes to taking good care of its workforce and the communities it impacts.
Governance score: 12.26/100
Apple's governance score puts it squarely in the 5th percentile of companies rated in the same sector. That could suggest that Apple is a leader in its sector when it comes to responsible management and strategy, and exposed to a lower level of risk.
Controversy score: 3/5
ESG scores also evaluate any incidences of controversy that a company has been involved in. Apple scored a 3 out of 5 for controversy – a middle-of-the-table result reflecting that Apple hasn't always managed to keep its nose clean.
Wondering how that compares? Below are the controversy scores of similar companies.
|Total ESG score||27.82|
|Total ESG percentile||36.44|
|Environmental score percentile||5|
|Social score percentile||5|
|Governance score percentile||5|
|Level of controversy||3|
Dividend payout ratio: 24.08% of net profits
Recently Apple has paid out, on average, around 24.08% of net profits as dividends. That has enabled analysts to estimate a "forward annual dividend yield" of 0.89% of the current stock value. This means that over a year, based on recent payouts (which are sadly no guarantee of future payouts), Apple shareholders could enjoy a 0.89% return on their shares, in the form of dividend payments. In Apple's case, that would currently equate to about $3.28 per share.
While Apple's payout ratio might seem low, this can signify that Apple is investing more in its future growth.
Apple's most recent dividend payout was on 14 May 2020. The latest dividend was paid out to all shareholders who bought their shares by 8 May 2020 (the "ex-dividend date").
Apple's dividend payout ratio is perhaps best considered in relation to those of similar companies.
Apple's shares were split on a 7:1 basis on 9 June 2014. So if you had owned 1 share the day before before the split, the next day you'd have owned 7 shares. This wouldn't directly have changed the overall worth of your Apple shares – just the quantity. However, indirectly, the new 85.7% lower share price could have impacted the market appetite for Apple shares which in turn could have impacted Apple's share price.
Over the last 12 months, Apple's shares have ranged in value from as little as $192.58 up to $372.38. A popular way to gauge a stock's volatility is its "beta".
Beta is a measure of a share's volatility in relation to the market. The market (NASDAQ average) beta is 1, while Apple's is 1.1704. This would suggest that Apple's shares are more volatile than the average for this exchange and represent, relatively-speaking, a higher risk (but potentially also market-beating returns).
To put Apple's beta into context you can compare it against those of similar companies.
Apple Inc. designs, manufactures, and markets smartphones, personal computers, tablets, wearables, and accessories worldwide. It also sells various related services. 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 TV, Apple Watch, Beats products, HomePod, iPod touch, and other Apple-branded and third-party accessories. It also provides digital content stores and streaming services; AppleCare support services; and iCloud, a cloud service, which stores music, photos, contacts, calendars, mail, documents, and others. In addition, the company offers various service, such as Apple Arcade, a game subscription service; Apple Card, a co-branded credit card; Apple News+, a subscription news and magazine service; and Apple Pay, a cashless payment service, as well as licenses its intellectual property, and provides other related services. The company serves consumers, and small and mid-sized businesses; and the education, enterprise, and government markets. It sells and delivers third-party applications for its products through the App Store, Mac App Store, and Watch App Store. The company also sells its products through its retail and online stores, and direct sales force; and third-party cellular network carriers, wholesalers, retailers, and resellers. Apple Inc. has a collaboration with Google to develop COVID-19 tracking system for Android and iOS devices. Apple Inc. was founded in 1977 and is headquartered in Cupertino, California.
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