We were pleased with AAPL’s recent initiatives, such as the opening of its first store in India, and the launching of new solutions, including Apple Pay Later (offering two-month loans for consumers) and Apple Card Savings (offering high-yield savings accounts).
Due to increased odds of rate cuts in H2-2023, we are expecting a rally in tech stocks. Key headwinds include slower global GDP growth, and weak 2023 sales forecasts for PCs (-7% YoY), tablets (-3% YoY), and smartphones (-4% YoY) - Source: Gartner. The IMF is projecting global GDP growth to decline to 2.8% in 2023, from 3.4% in 2022.
Key Financial Data (YE Sept 30, $M)
2017
2018
2019
2020
2021E
2022E
Cash, cash equivalent and marketable securities
268,895
237,100
205,898
191,830
184,620
189,006
Working Capital
27,831
15,410
57,101
38,321
56,547
80,773
Total Assets
375,319
365,725
338,516
323,888
327,615
341,152
Revenue
229,234
265,595
260,174
274,515
351,984
385,856
Net Income
48,351
59,531
55,256
57,411
92,361
101,182
EPS Diluted ($)
2.32
3
2.99
3.28
5.5
6.03
Relative Valuation - AAPL
EPS 2022E ($)
$6.29
EPS 2023E ($)
$6.74
Target P/E multiple for 2022E (x) - 20% premium to avg
29.1x
Target P/E Multiple for 2023E (x) - 20% premium to avg
25.9x
Fair value per share ($) - P/E Multiple (2022E)
182.81
Fair value per share ($) - P/E Multiple (2023E)
174.61
Discussion
Comments reflect the views of individual users, not FRC. Nothing posted in the comments section — by users or otherwise — should be taken as investment advice.
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Discussion
Comments reflect the views of individual users, not FRC. Nothing posted in the comments section — by users or otherwise — should be taken as investment advice.