Apple Inc. (AAPL)

Common Stock Valuation Ratios (Price Multiples)

Difficulty: Beginner

Valuation ratios measure the quantity of an asset or flaw (e.g., earnings) associated with ownership of a specified claim (e.g., a share of ownership of the enterprise).

Current Valuation Ratios

Apple Inc., current price multiples

	Apple Inc.	Applied Materials Inc.	Broadcom Ltd.	Cisco Systems Inc.	HP Inc.	Intel Corp.	NVIDIA Corp.	Qualcomm Inc.	Texas Instruments Inc.	Technology Hardware & Equipment	Technology
Selected Financial Data
Current share price (P)	$
No. shares of common stock outstanding
Growth rate (g)	%

Earnings per share (EPS)	$
Next year expected EPS	$
Operating profit per share	$
Sales per share	$
Book value per share (BVPS)	$
Ratios (Price Multiples)
Price to earnings (P/E)
Price to next year expected earnings
Price-earnings-growth (PEG)
Price to operating profit (P/OP)
Price to sales (P/S)
Price to book value (P/BV)

If company price multiple is lower then the price multiple of benchmark then company stock is relatively undervalued.

Otherwise, if company price multiple is higher then the price multiple of benchmark then company stock is relatively overvalued.

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Historical Valuation Ratios (Summary)

Apple Inc., historical price multiples

		Sep 30, 2017	Sep 24, 2016	Sep 26, 2015	Sep 27, 2014	Sep 28, 2013	Sep 29, 2012
	Price to earnings (P/E)
	Price to operating profit (P/OP)
	Price to sales (P/S)
	Price to book value (P/BV)

Ratio	Description	The company
P/E ratio	The P/E ratio tells analyst how much an investor in common stock pays per dollar of current earnings.	Apple Inc.'s P/E ratio increased from 2015 to 2016 and from 2016 to 2017.
P/OP ratio	Because P/E ratio is calculated using net income, the ratio can be sensitive to nonrecurring earnings and capital structure, analysts may use price to operating profit.	Apple Inc.'s P/OP ratio increased from 2015 to 2016 and from 2016 to 2017.
P/S ratio	An rationale for the P/S ratio is that sales, as the top line in an income statement, are generally less subject to distortion or manipulation than other fundamentals such as EPS or book value. Sales are also more stable than earnings and never negative.	Apple Inc.'s P/S ratio increased from 2015 to 2016 and from 2016 to 2017.
P/BV ratio	The P/BV ratio is interpreted as an indicator of market judgment about the relationship between a company's required rate of return and its actual rate of return.	Apple Inc.'s P/BV ratio declined from 2015 to 2016 but then increased from 2016 to 2017 exceeding 2015 level.

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Price to Earnings (P/E)

Apple Inc., historical P/E calculation, comparison to benchmarks

		Sep 30, 2017	Sep 24, 2016	Sep 26, 2015	Sep 27, 2014	Sep 28, 2013	Sep 29, 2012
	No. shares of common stock outstanding¹
	Selected Financial Data (USD $)
	Net income (in millions)
	Earnings per share (EPS)³
	Share price^1, 2
	Ratio
	P/E ratio⁴
	Benchmarks
	P/E Ratio, Competitors
	Applied Materials Inc.
	Broadcom Ltd.
	Cisco Systems Inc.
	HP Inc.
	Intel Corp.
	NVIDIA Corp.
	Qualcomm Inc.
	Texas Instruments Inc.
	P/E Ratio, Sector
	Technology Hardware & Equipment
	P/E Ratio, Industry
	Technology

¹ Data adjusted for splits and stock dividends.

² Close price on the filing date of Apple Inc.'s Annual Report.

2017 Calculations

³ EPS = Net income ÷ No. shares of common stock outstanding
= ÷ =

⁴ P/E ratio = Share price ÷ EPS
= ÷ =

Ratio	Description	The company
P/E ratio	The P/E ratio tells analyst how much an investor in common stock pays per dollar of current earnings.	Apple Inc.'s P/E ratio increased from 2015 to 2016 and from 2016 to 2017.

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Price to Operating Profit (P/OP)

Apple Inc., historical P/OP calculation, comparison to benchmarks

		Sep 30, 2017	Sep 24, 2016	Sep 26, 2015	Sep 27, 2014	Sep 28, 2013	Sep 29, 2012
	No. shares of common stock outstanding¹
	Selected Financial Data (USD $)
	Operating income (in millions)
	Operating profit per share³
	Share price^1, 2
	Ratio
	P/OP ratio⁴
	Benchmarks
	P/OP Ratio, Competitors
	Applied Materials Inc.
	Broadcom Ltd.
	Cisco Systems Inc.
	HP Inc.
	Intel Corp.
	NVIDIA Corp.
	Qualcomm Inc.
	Texas Instruments Inc.
	P/OP Ratio, Sector
	Technology Hardware & Equipment
	P/OP Ratio, Industry
	Technology

¹ Data adjusted for splits and stock dividends.

² Close price on the filing date of Apple Inc.'s Annual Report.

2017 Calculations

³ Operating profit per share = Operating income ÷ No. shares of common stock outstanding
= ÷ =

⁴ P/OP ratio = Share price ÷ Operating profit per share
= ÷ =

Ratio	Description	The company
P/OP ratio	Because P/E ratio is calculated using net income, the ratio can be sensitive to nonrecurring earnings and capital structure, analysts may use price to operating profit.	Apple Inc.'s P/OP ratio increased from 2015 to 2016 and from 2016 to 2017.

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Price to Sales (P/S)

Apple Inc., historical P/S calculation, comparison to benchmarks

		Sep 30, 2017	Sep 24, 2016	Sep 26, 2015	Sep 27, 2014	Sep 28, 2013	Sep 29, 2012
	No. shares of common stock outstanding¹
	Selected Financial Data (USD $)
	Net sales (in millions)
	Sales per share³
	Share price^1, 2
	Ratio
	P/S ratio⁴
	Benchmarks
	P/S Ratio, Competitors
	Applied Materials Inc.
	Broadcom Ltd.
	Cisco Systems Inc.
	HP Inc.
	Intel Corp.
	NVIDIA Corp.
	Qualcomm Inc.
	Texas Instruments Inc.
	P/S Ratio, Sector
	Technology Hardware & Equipment
	P/S Ratio, Industry
	Technology

¹ Data adjusted for splits and stock dividends.

² Close price on the filing date of Apple Inc.'s Annual Report.

2017 Calculations

³ Sales per share = Net sales ÷ No. shares of common stock outstanding
= ÷ =

⁴ P/S ratio = Share price ÷ Sales per share
= ÷ =

Ratio	Description	The company
P/S ratio	An rationale for the P/S ratio is that sales, as the top line in an income statement, are generally less subject to distortion or manipulation than other fundamentals such as EPS or book value. Sales are also more stable than earnings and never negative.	Apple Inc.'s P/S ratio increased from 2015 to 2016 and from 2016 to 2017.

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Price to Book Value (P/BV)

Apple Inc., historical P/BV calculation, comparison to benchmarks

		Sep 30, 2017	Sep 24, 2016	Sep 26, 2015	Sep 27, 2014	Sep 28, 2013	Sep 29, 2012
	No. shares of common stock outstanding¹
	Selected Financial Data (USD $)
	Shareholders' equity (in millions)
	Book value per share (BVPS)³
	Share price^1, 2
	Ratio
	P/BV ratio⁴
	Benchmarks
	P/BV Ratio, Competitors
	Applied Materials Inc.
	Broadcom Ltd.
	Cisco Systems Inc.
	HP Inc.
	Intel Corp.
	NVIDIA Corp.
	Qualcomm Inc.
	Texas Instruments Inc.
	P/BV Ratio, Sector
	Technology Hardware & Equipment
	P/BV Ratio, Industry
	Technology

¹ Data adjusted for splits and stock dividends.

² Close price on the filing date of Apple Inc.'s Annual Report.

2017 Calculations

³ BVPS = Shareholders' equity ÷ No. shares of common stock outstanding
= ÷ =

⁴ P/BV ratio = Share price ÷ BVPS
= ÷ =

Ratio	Description	The company
P/BV ratio	The P/BV ratio is interpreted as an indicator of market judgment about the relationship between a company's required rate of return and its actual rate of return.	Apple Inc.'s P/BV ratio declined from 2015 to 2016 but then increased from 2016 to 2017 exceeding 2015 level.

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	Apple Inc.	Other companies (not purchased previously)
Long-term Trends
Financial Statements
Common-Size Financial Statements
Ratios
Relative Valuation
Discounted Cash Flow (DCF) Valuation
Analysis
Financial Reporting Quality

	All companies
Long-term Trends
Financial Statements
Common-Size Financial Statements
Ratios
Relative Valuation
Discounted Cash Flow (DCF) Valuation
Analysis
Financial Reporting Quality