Apple Inc's Intrinsic Value: A Data-Driven Approach to Estimation

Apple Inc's intrinsic value, as calculated by the GuruFocus DCF calculator, is $168.27, compared to its current market price of $211.18, resulting in a margin of safety of -25.5%. The model follows a two-stage approach, with a growth stage and terminal stage, using EPS without NRI and a discount rate of 11%. The growth rate for the growth stage is 15.90% for 10 years, and 4% for the terminal stage for 10 years. The calculation takes into account the EPS without NRI and the discount rate to arrive at the intrinsic value estimate.

Apple Inc. (NASDAQ:AAPL), the tech giant known for its innovative products and services, has seen its stock price fluctuate in recent quarters. To understand the company's intrinsic value, we turn to the GuruFocus DCF calculator, which provides a reliable and data-driven approach to estimating the company's intrinsic value.

According to the GuruFocus DCF calculator, Apple Inc.'s intrinsic value is estimated at $168.27, compared to its current market price of $211.18. This results in a margin of safety of -25.5%, indicating that the stock is modestly overvalued based on this valuation model [1].

The GuruFocus DCF calculator follows a two-stage model, consisting of a growth stage and a terminal stage. The growth stage assumes a growth rate of 15.90% for the next 10 years, while the terminal stage applies a lower growth rate of 4% for the following 10 years. The model uses EPS without NRI and applies a discount rate of 11% [1].

While the DCF model is a robust valuation methodology, it relies on various assumptions and projections that may affect the accuracy of the final intrinsic value calculation. Future earnings potential, growth, and predictability are key considerations when employing the DCF model. Embracing growth and understanding the predictability of Apple's earnings are crucial for a more accurate valuation [1].

Apple Inc. has been a leader in the tech industry, consistently delivering innovative products and services. However, the company's stock price has been influenced by various factors, including market conditions and geopolitical events. The DCF model provides a snapshot of the company's intrinsic value, but it is essential to consider other valuation methods and factors when making investment decisions.

References:
[1] https://stockanalysis.com/stocks/aapl/
[2] https://finance.yahoo.com/news/beyond-market-price-uncovering-apple-120820300.html