Apple Inc., FCFF calculation

US$ in millions

12 months ended:	Sep 30, 2023	Sep 24, 2022	Sep 25, 2021	Sep 26, 2020	Sep 28, 2019	Sep 29, 2018
Net income	96,995)	99,803)	94,680)	57,411)	55,256)	59,531)
Net noncash charges	20,125)	21,148)	14,269)	17,573)	17,623)	(16,791)
Changes in operating assets and liabilities	(6,577)	1,200)	(4,911)	5,690)	(3,488)	34,694)
Cash generated by operating activities	110,543)	122,151)	104,038)	80,674)	69,391)	77,434)
Cash paid for interest, net of tax¹	3,244)	2,401)	2,330)	2,570)	2,879)	2,469)
Payments for acquisition of property, plant and equipment	(10,959)	(10,708)	(11,085)	(7,309)	(10,495)	(13,313)
Free cash flow to the firm (FCFF)	102,828)	113,844)	95,283)	75,935)	61,775)	66,590)

Based on: 10-K (reporting date: 2023-09-30), 10-K (reporting date: 2022-09-24), 10-K (reporting date: 2021-09-25), 10-K (reporting date: 2020-09-26), 10-K (reporting date: 2019-09-28), 10-K (reporting date: 2018-09-29).

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Item	Description	The company
FCFF	Free cash flow to the firm is the cash flow available to the Apple Inc. suppliers of capital after all operating expenses have been paid and necessary investments in working and fixed capital have been made.	Apple Inc. FCFF increased from 2021 to 2022 but then slightly decreased from 2022 to 2023 not reaching 2021 level.

Apple Inc., interest paid, net of tax calculation

US$ in millions

12 months ended:	Sep 30, 2023	Sep 24, 2022	Sep 25, 2021	Sep 26, 2020	Sep 28, 2019	Sep 29, 2018
Effective Income Tax Rate (EITR)
EITR¹	14.70%	16.20%	13.30%	14.40%	15.90%	18.30%
Interest Paid, Net of Tax
Cash paid for interest, before tax	3,803)	2,865)	2,687)	3,002)	3,423)	3,022)
Less: Cash paid for interest, tax²	559)	464)	357)	432)	544)	553)
Cash paid for interest, net of tax	3,244)	2,401)	2,330)	2,570)	2,879)	2,469)

Based on: 10-K (reporting date: 2023-09-30), 10-K (reporting date: 2022-09-24), 10-K (reporting date: 2021-09-25), 10-K (reporting date: 2020-09-26), 10-K (reporting date: 2019-09-28), 10-K (reporting date: 2018-09-29).

¹ See details »

² 2023 Calculation
Cash paid for interest, tax = Cash paid for interest × EITR
= 3,803 × 14.70% = 559

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Apple Inc., current EV/FCFF calculation, comparison to benchmarks

Selected Financial Data (US$ in millions)
Enterprise value (EV)	2,664,868)
Free cash flow to the firm (FCFF)	102,828)
Valuation Ratio
EV/FCFF	25.92
Benchmarks
EV/FCFF, Competitors¹
Arista Networks Inc.	38.88
Cisco Systems Inc.	9.10
Super Micro Computer Inc.	75.40
EV/FCFF, Sector
Technology Hardware & Equipment	23.77
EV/FCFF, Industry
Information Technology	42.64

Based on: 10-K (reporting date: 2023-09-30).

¹ Click competitor name to see calculations.

If the company EV/FCFF is lower then the EV/FCFF of benchmark then company is relatively undervalued.
Otherwise, if the company EV/FCFF is higher then the EV/FCFF of benchmark then company is relatively overvalued.

Apple Inc., historical EV/FCFF calculation, comparison to benchmarks

	Sep 30, 2023	Sep 24, 2022	Sep 25, 2021	Sep 26, 2020	Sep 28, 2019	Sep 29, 2018
Selected Financial Data (US$ in millions)
Enterprise value (EV)¹	2,797,951)	2,550,236)	2,520,606)	1,872,970)	1,112,797)	1,004,854)
Free cash flow to the firm (FCFF)²	102,828)	113,844)	95,283)	75,935)	61,775)	66,590)
Valuation Ratio
EV/FCFF³	27.21	22.40	26.45	24.67	18.01	15.09
Benchmarks
EV/FCFF, Competitors⁴
Arista Networks Inc.	39.01	89.96	38.46	28.99	15.17	—
Cisco Systems Inc.	10.98	13.46	15.47	10.35	12.56	14.32
Super Micro Computer Inc.	21.05	—	25.07	—	3.78	18.10
EV/FCFF, Sector
Technology Hardware & Equipment	24.85	21.83	25.06	22.35	16.86	—
EV/FCFF, Industry
Information Technology	34.25	27.01	27.93	24.12	19.69	—

Based on: 10-K (reporting date: 2023-09-30), 10-K (reporting date: 2022-09-24), 10-K (reporting date: 2021-09-25), 10-K (reporting date: 2020-09-26), 10-K (reporting date: 2019-09-28), 10-K (reporting date: 2018-09-29).

¹ See details »

² See details »

³ 2023 Calculation
EV/FCFF = EV ÷ FCFF
= 2,797,951 ÷ 102,828 = 27.21

⁴ Click competitor name to see calculations.

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Valuation ratio	Description	The company
EV/FCFF	Enterprise value to free cash flow to the firm is whole company valuation indicator.	Apple Inc. EV/FCFF ratio decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level.

Apple Inc. (NASDAQ:AAPL)

Enterprise Value to FCFF (EV/FCFF)

Free Cash Flow to The Firm (FCFF)

Interest Paid, Net of Tax

Enterprise Value to FCFF Ratio, Current

Enterprise Value to FCFF Ratio, Historical