AAPL Stock Report

2-Year Price History

Ockham’s Rating

AAPL Revenue

For a long time, value investors have used the current share price relative to sales per share levels as an important valuation tool. We utilize a historical weighted average methodology that treats recent years more importantly in the calculation. When looking at AAPL through this framework, we can see that our weighted average historical high and low Price to Sales per share ratios over the last 10 years are 3.73x and 1.79x respectively.

Utilizing this range we can see that AAPL’s current Price to Sales per share ratio of 3.05x is somewhat above its historical average. As such, the current Price to Sales ratio suggests a neutral share price forecast. In order for us to become more positive about AAPL we would need to see a drop in the Price to Sales ratio of 10% given current sales per share levels in order to return to its historical weighted average.

AAPL Cash Earnings

Cash Earnings is always one of the most important factors to review for a company and, more importantly, an investment in a stock. AAPL is significantly below their historical average multiples of Cash Earnings, as calculated by our proprietary analysis. It is incredibly important to understand that for AAPL, the current level of Cash Earnings compared to its historical levels helps identify where AAPL is in relation to what the investing community was willing to pay for this level of Cash Earnings in the past. With a historical high Cash Earnings per share ratio of 39.10 and a historical low Cash Earnings per share ratio of 19.80, an investor can relate where value becomes optimal.

So what does "significantly below" mean when we talk about Price to Cash Earnings numbers for AAPL? From the Ockham perspective, we are looking specifically at AAPL to see if the market is recognizing the huge disparity between AAPL’s past stock price to Cash Earnings ratio to today’s levels. At a difference of 25% below the average historical Price to Cash Earnings ratio, our view would be quite positive at this point. However, as with all metrics, we need to also take other factors into account when looking at AAPL. While we view better Cash Earnings metrics as very important, if the market is slow to identify this value, or if Cash Earnings were to fall from these levels, we would become more neutral in our stance.

AAPL Dividends

A strong dividend payment history is looked upon as a favorable characteristic on a company’s future and potentially can receive a positive Ockham rating. That being said, we don’t require dividend payments for company’s whose management has elected to forgo them entirely. As far as our investing methodology goes, it is not necessary to pay a dividend in order to get a favorable rating, so as for right now AAPL gets a neutral rating for the dividend portion of the model. As you can see, we are not receiving historical dividend information from our data provider on AAPL at this time.