Apple

DCF to market -49.1% (tolerance 15.0%). the steady state after FY2037 (Market inputs: Terminal growth, 3.8 per cent, the long-run nominal GDP growth) at the common discount rate (WACC 9.48 per cent), not the forecast years: The DCF's equity value at the snapshot, 2.46 trillion dollars, is 49.1 per cent below the 4.82 trillion market capitalisation. At the model's 9.48 per cent WACC the market's enterprise value at the valuation date, 5.04 trillion, needs terminal growth of about 7.5 per cent a year forever after FY2037 at RONIC 50 per cent, against the 3.8 per cent taken; in a steady state from FY2028 it implies a WACC of 6.41 per cent (Market-implied WACC), an equity risk premium near 1.4 per cent over the 4.95 per cent Treasury at beta 1, against the 4.46 per cent set for every US company. The market's enterpri

Residual income to market -47.3% (tolerance 15.0%). the steady state of residual operating income after FY2037 (Market inputs: Long-run nominal GDP growth, 3.8 per cent) at the common discount rate (WACC 9.48 per cent): Residual income's equity value at the snapshot, 2.54 trillion dollars, is 47.3 per cent below the 4.82 trillion market capitalisation, for the DCF's cause. At the model's 9.48 per cent WACC the market's enterprise value needs a continuing value at FY2037 of 9.77 trillion against the model's 3.66 trillion: FY2037's residual operating income of 200 billion growing 7.28 per cent a year forever (Market-implied growth), against the 3.8 per cent GDP growth taken. Net sales grew 5.0 per cent a year over FY2022 to FY2026 and ROIC on opening invested capital ran 328 to 5,813 per cent over FY2023 to FY2