Fundamental Analysis

Apple revolutionized personal technology with the introduction of the Macintosh in 1984. Today, Apple leads the world in innovation with iPhone, iPad, Mac, Apple Watch and Apple TV. Apple’s four software platforms — iOS, macOS, watchOS and tvOS — provide seamless experiences across all Apple devices and empower people with breakthrough services including the App Store, Apple Music, Apple Pay and iCloud. Apple’s more than 100,000 employees are dedicated to making the best products on earth, and to leaving the world better than we found it.


High level decisions on buy or sell for a stock should be driven by

1. The margin that the company makes. i.e. Out of $1 that the company sells how much does the company taken home.

    • Here we see APPLE makes a margin of 38% on Gross Level and about 23% on Net level This means that out of $1 that it makes $0.22 is being pocketed as profits.

2. The growth rates of the company on revenue, net income, EPS and Dividend. i.e. If it sold $1 last year how much more did it sell this year.

    • Here we see APPLE grew at an astronomous rate of 15% in the revenue and the net profit figures grew by 25%.

3. The efficiency ratios of the company on Equity and Assets. i.e. How well is the company able to sweat each $1 that it puts to work in the company.

  • Here we see APPLE makes a Return on Assets of 15% and Return of Equity of 44% which is pretty good. Due to the high D/E ratio we see that the RoE is much better than the RoA.

Here we see that APPLE scores high on each and every one of the parameters that we have selected when compared to our reasonable barriers that we have kept.

GOLD STANDARD : This is one of the no-debate stocks that are a must have in ones portfolio.

FAMOUS INVESTORS: This stock is owned by the Great Warren Buffett so I suppose you don’t have to think twice before investing in this counter.

All these ratios can be found in the attached excel sheets and are based on the EDGAR report submitted by APPLE to the SEC.. All the data on the above analysis can be found at the link below

Balance Sheet


Income Statement