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http://www.oldschoolvalue.comStock valuation of aapl to find the intrinsic value. Free stock value spreadsheets available.
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- Yellow highlighted fields are user input fields. Enter ticker in the Summary tab only.
- Use yellow fields to override the default values without messing up formulas and accidently saving incorrect values
- If a graph is squashed or looks out of place, zoom in and zoom out to refresh the view.
- Press F9 to start calculations. Automatic formula calculations have been turned off in the excel menu to improve start speed and convenience.
- Protected sheets do not have any passwords. Simply unprotect it.
- Summary page provides a quick overview of all valuation methods and important graphs and numbers. Easy to add more or less yourself.
- DCF Valuation is based on discounted cash flow. Important company fundamental metrics included.
- Useful for companies with either 5yr or 10yrs of operating history
- Use 5yr version if there has been a recent turnaround or a major event changing the fundamentals of the business
- Use 10yr version for stable, cash cows such as KO or JNJ. You can even use it for stable consistent small caps
- Adjust user growth, discount rate, FCF override, terminal rate (default 3%)
- Price vs Value tab displays only the DCF intrinsic value compared to the historical stock price. (Thinking of how to add Graham intrinsic value and
EPV to the graph)
- Graham Intrinsic Value is based on Ben Graham's formula defined in the Intelligent Investor
Intrisic Value = "normal" earnings x (8.5 + (2 x expected 5 yr growth)) x (4.4/20yr A corp bond)
- Use for companies where FCF is erratic such as cyclicals or short history companies.
- Remember that earnings are usually inflated.
Companies may overstate earnings by hiding some numbers in there but they will never understate earnings on purpose.
- Which means that the value you get with the Graham equation will be higher than normal.
- Use high margin of safety (MOS)
- Adjust user growth
- EPV is based on Bruce Greenwald's book.
http://www.oldschoolvalue.com/book-reviews/greenwald-earnings-power-value-investing-epv/
- Detailed instructions on how to use the spreadsheet with a rundown of Microsoft
http://www.oldschoolvalue.com/stock-analysis/earnings-power-value-epv-valuation-microsoft/
- To explain it here, I would have to write out the entire book again. Please read it yourself to fully understand it.
- "Adjust +/-" column is for adding or subtracting values from the stated numbers
- "Multiplier" is to select what % you want to consider it. e.g. intangibles usually = 0%
- Select the pinkish cell to select either data from MSN or ADVFN
- Cell P47, select either 3 or 4 years of R&D you want to include into the valuation
- EPV section row 66, include or exclude extraordinary items to EBIT
- Read the comments to see references and explanations from the book
- Competitors tab allows you to view 6 companies side by side
- Charts tab shows different performance graphs of the companies
- Assessment tab is a checklist that you should try to folllow before making investment decisions.
- You should at least be able to draw up the spider graph
Jae Jun | Old School ValueAll spreadsheet related questions and support is now handled only through the forum.
http://www.oldschoolvalue.com/forum/spreadsheet-installation/
How to Use
Nothing on Old School Value, related pages, emails, or other communications by the author, either written or oral, are intended to be a
recommendation to either buy, hold, or sell any specific security or group of securities. Likewise, nothing herein should be construed as an
endorsement of any financial adviser, investment manager, commercial information provider, transaction service, or brokerage firm.
The findings from this spreadsheet is merely a start to a means of further research and uncovering a great business and investment. Old
School Value holds no responsibility for any investment whatsoever.
Spreadsheet Installation Related - Refer to the manual and ask for help on the forums to reduce repetitive questions and answers.The manual contains every possible problem
related to the spreadsheet.
- When requesting help, please try to find out whether it is a spreadsheet issue or excel issue.
PDF: http://www.oldschoolvalue.com/intrinsic-value-spreadsheets/installation-troubleshooting-guide/
Forum: http://www.oldschoolvalue.com/forum/spreadsheet-installation/
Disclaimer
Company Name ticker
Apple Inc www.oldschoolvalue.com
10/1/2009 Figures in Millions except per share values
Current Price
Total Net Reprod. Cost 10.57$ EPV 68.52$ Graham Price 102.87$ DCF Price 161.07$ 183.62$
Reprod. Cost of Assets BV 36.95$ Normalized Income 3,692.87$ Growth Rate 30% Growth Rate 20%
Tangible BV 30.26$ Discount Rate 9% Normalized EPS 2.03$ Discount Rate 9%
NNWC 7.31$ Margin of Safety 0% Margin of Safety 0% Margin of Safety 0%
Market Cap (millions) 166,040 Quick Ratio (MRQ) 2.09 Gross (TTM) 35.49 Operating (TTM) 19.98 Net Profit (TTM) 14.97
52-Week High 188.90 Current Ratio (MRQ) 2.11 Gross - 5 Yr. Avg. 31.83 Operating - 5 Yr. Avg. 15.4 Net Profit - 5 Yr. Avg. 12.15
52-Week Low 78.20 LT Debt to Equity (MRQ) 0 EBITD (TTM) 21.84 Pre-Tax (TTM) 21.2
% off 52-Week Low 137.0% Total Debt to Equity (MRQ) 0 EBITD - 5 Yr. Avg. 16.82 Pre-Tax - 5 Yr. Avg. 17.24
P/E Ratio (TTM) 32.4 Sales (MRQ) vs Qtr. 1 Yr. Ago 11.7 ROA (TTM) 12.96 Revenue/Employee (TTM) 1080063
Price to Sales (TTM) 4.8 Sales (TTM) vs TTM 1 Yr. Ago 4.8 ROA - 5 Yr. Avg. 13.96 Net Income/Employee (TTM) 161719
Price to Book (MRQ) 6.41 Sales - 5 Yr. Growth Rate 39.23 ROI (TTM) 19.18 Receivable Turnover (TTM) 16.12
Price to Tangible Book (MRQ) 6.56 EPS (MRQ) vs Qtr. 1 Yr. Ago 13.89 ROI - 5 Yr Avg 21.57 Inventory Turnover (TTM) 48.21
Price to Cash Flow (TTM) 28.56 EPS (TTM) vs TTM 1 Yr. Ago 11.88 ROE (TTM) 22.74 Asset Turnover (TTM) 0.87
Price to Free Cash Flow (TTM) 16.31 EPS - 5 Yr. Growth Rate 124.7 ROE - 5 Yr. Avg. 24
Enterprise Value/Revenue (TTM) 4.1 Capital Spending - 5 Yr. Grwth 48.87
Enterprise Value/EBITDA (TTM) 18.862
Multi-Year Performance
2003-2007 2004-2008 2003-2006 2004-2007 2005-2008 2003-2005 2004-2006 2005-2007 2006-2008 Median
Shareholder Equity 36.3% 42.5% 33.6% 41.8% 40.7% 33.8% 40.3% 38.8% 44.7% 40.3%
Free Cash Flow 261.6% 102.6% 342.3% 130.9% 49.8% 734.7% 149.6% 56.7% 64.6% 130.9%
CROIC 14.7% 15.7% 9.7% 15.2% 16.3% 4.7% 14.7% 15.7% 16.9% 15.2%
FCF/Sales 8.1% 9.0% 5.5% 8.5% 10.9% 3.0% 8.1% 9.0% 12.8% 8.5%
ROA 13.6% 13.8% 8.7% 13.7% 14.4% 3.7% 13.6% 13.8% 14.9% 13.7%
ROE 21.3% 22.8% 13.6% 22.0% 25.0% 5.9% 21.3% 22.8% 27.2% 22.0%
Revenue Growth 40.2% 40.7% 46.0% 42.6% 32.6% 49.8% 52.7% 31.3% 29.7% 40.7%
Gross Margin 29.0% 29.0% 28.2% 29.0% 31.5% 27.5% 29.0% 29.0% 34.0% 29.0%
Operating Margin 11.8% 12.7% 7.9% 12.3% 15.5% 3.9% 11.8% 12.7% 18.4% 12.3%
Net Margin 9.6% 10.3% 6.5% 9.9% 12.4% 3.3% 9.6% 10.3% 14.6% 9.9%
Earnings Growth 150.4% 96.4% 183.1% 121.8% 50.9% 295.0% 151.1% 58.7% 53.7% 121.8%
Cash from Ops Growth 108.6% 79.0% 97.3% 80.3% 55.8% 196.2% 54.2% 46.9% 107.9% 80.3%
DCF ValuationGraham ValuationAsset Valuation EPV Valuation
Historical Stock Price Vs Intrinsic Value Per Share
Financial Strength Margins & Profitability
Valuation Ratios Growth Stats
AAPL
Management Effective Efficiency
Key Statistics
Apple Inc.designs, manufactures, and markets personal computers, portable digital music players, and mobile communication devices and sells a variety of related software, services, peripherals, and networking
solutions. The Company sells its products worldwide through its online stores, its retail stores, its direct sales force, and third-party wholesalers, resellers, and value-added resellers. In addition, the Company sells a
variety of third-party Macintosh (Mac), iPod and iPhone compatible products, including application software, printers, storage devices, speakers, headphones, and various other accessories and peripherals through its
online and retail stores, , and digital content through the iTunes Store. It sells to consumer, small and mid-sized business (SMB), education, enterprise, government, and creative customers.
0
50
100
150
200
250
1/21/2003 7/21/2003 1/21/2004 7/21/2004 1/21/2005 7/21/2005 1/21/2006 7/21/2006 1/21/2007 7/21/2007 1/21/2008 7/21/2008 1/21/2009 7/21/2009
Historical Price
Intrinsic Value
Buy Price
Margin Percentages
Free Cash Flow vs Tangible Shareholder Equity Trend Efficiency & Profitability
Sales, AR, Inventory CAPEX vs PPE
27.65% 27.13%
23.03%
27.92% 27.52% 27.29%29.02% 28.98%
33.97% 34.31%
5.85% 6.54%
-6.41%
0.30% -0.02%
3.94%
11.84% 12.70%
18.37% 19.32%
9.80% 9.85%
-0.47%1.13% 1.11%
3.33%
9.58% 10.30%
14.56% 14.88%
-10.00%
-5.00%
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
35.00%
40.00%
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
Gross Margin
Operating Margin
Net Margin
-10.0%
-5.0%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
CROIC
FCF/Sales
ROA
ROE
$(5,000.0)
$-
$5,000.0
$10,000.0
$15,000.0
$20,000.0
$25,000.0
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
FCF
Shareholder Equity
$-
$5,000.0
$10,000.0
$15,000.0
$20,000.0
$25,000.0
$30,000.0
$35,000.0
$40,000.0
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 TTM
Sales
Accts Receivable
Inventory
$-
$500.0
$1,000.0
$1,500.0
$2,000.0
$2,500.0
$3,000.0
$3,500.0
2002 2003 2004 2005 2006 2007 2008 TTM
Last 6 yrs
Last 5 yrs
Last 4 yrs
Last 3 yrs
Last 2 yrs
Last 1 yr
PPE
Company Name
Apple Inc www.oldschoolvalue.com AAPL10/1/2009 Figures in Millions except per share values
AAPL 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 TTM
Revenue 6,134.0$ 7,983.0$ 5,363.0$ 5,742.0$ 6,207.0$ 8,279.0$ 13,931.0$ 19,315.0$ 24,006.0$ 32,479.0$ 34,562.0$
% change from last year 23.2% -48.9% 6.6% 7.5% 25.0% 40.6% 27.9% 19.5% 26.1% 6.0%
COGS 4,438.0$ 5,817.0$ 4,128.0$ 4,139.0$ 4,499.0$ 6,020.0$ 9,888.0$ 13,717.0$ 15,852.0$ 21,334.0$ 22,297.0$
COGS (%) 72.4% 72.9% 77.0% 72.1% 72.5% 72.7% 71.0% 71.0% 66.0% 65.7% 64.5%
Gross Profit 1,696.0$ 2,166.0$ 1,235.0$ 1,603.0$ 1,708.0$ 2,259.0$ 4,043.0$ 5,598.0$ 8,154.0$ 11,145.0$ 12,265.0$
Gross Profit (%) 27.6% 27.1% 23.0% 27.9% 27.5% 27.3% 29.0% 29.0% 34.0% 34.3% 35.5%
SG&A 996.0$ 1,166.0$ 1,138.0$ 1,111.0$ 1,212.0$ 1,421.0$ 1,859.0$ 2,433.0$ 2,963.0$ 3,761.0$ 4,085.0$
SG&A (%) 16.2% 14.6% 21.2% 19.3% 19.5% 17.2% 13.3% 12.6% 12.3% 11.6% 11.8%
R&D 314.0$ 380.0$ 441.0$ 447.0$ 471.0$ 489.0$ 534.0$ 712.0$ 782.0$ 1,109.0$ 1,273.0$
R&D (%) 5.1% 4.8% 8.2% 7.8% 7.6% 5.9% 3.8% 3.7% 3.3% 3.4% 3.7%
Other 27.0$ 98.0$ -$ 28.0$ 26.0$ 23.0$ -$ -$ -$ -$ -$
Other (%) 0.4% 1.2% 0.0% 0.5% 0.4% 0.3% 0.0% 0.0% 0.0% 0.0% 0.0%
Operating Income 359.0$ 522.0$ (344.0)$ 17.0$ (1.0)$ 326.0$ 1,650.0$ 2,453.0$ 4,409.0$ 6,275.0$ 6,907.0$
Operating Income (%) 5.9% 6.5% -6.4% 0.3% 0.0% 3.9% 11.8% 12.7% 18.4% 19.3% 20.0%
Net Int Inc & Other 317.0$ 570.0$ 292.0$ 70.0$ 93.0$ 57.0$ 165.0$ 365.0$ 599.0$ 620.0$ 421.0$
Earnings Before Taxes 676.0$ 1,092.0$ (52.0)$ 87.0$ 92.0$ 383.0$ 1,815.0$ 2,818.0$ 5,008.0$ 6,895.0$ 7,328.0$
Income Taxes 75.0$ 306.0$ (15.0)$ 22.0$ 24.0$ 107.0$ 480.0$ 829.0$ 1,512.0$ 2,061.0$ 2,153.0$
Tax Rate % 11.1% 28.0% 28.8% 25.3% 26.1% 27.9% 26.4% 29.4% 30.2% 29.9% 29.4%
Earnings After Taxes 601.0$ 786.0$ (37.0)$ 65.0$ 68.0$ 276.0$ 1,335.0$ 1,989.0$ 3,496.0$ 4,834.0$ 5,175.0$
Acctg Changes -$ -$ 12.0$ -$ 1.0$ -$ -$ -$ -$ -$ -$
Disc Operations -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$
Ext Items -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$
Net Income 601.0$ 786.0$ (25.0)$ 65.0$ 69.0$ 276.0$ 1,335.0$ 1,989.0$ 3,496.0$ 4,834.0$ 5,175.0$
Net Income (%) 9.8% 9.8% -0.5% 1.1% 1.1% 3.3% 9.6% 10.3% 14.6% 14.9% 15.0%
Diluted EPS, Cont Ops$ 0.9$ 1.1$ (0.1)$ 0.1$ 0.1$ 0.4$ 1.6$ 2.3$ 3.9$ 5.4$ 5.7$
Diluted EPS$ 0.9$ 1.1$ (0.0)$ 0.1$ 0.1$ 0.4$ 1.6$ 2.3$ 3.9$ 5.4$ 5.7$
Shares 696 720 691 723 726 774 856 877 889 902 904
Cash and Equiv 1,326.0$ 1,191.0$ 2,310.0$ 2,252.0$ 3,396.0$ 2,969.0$ 3,491.0$ 6,392.0$ 9,352.0$ 11,875.0$ 5,605.0$
Short-Term Investments 1,900.0$ 2,836.0$ 2,026.0$ 2,085.0$ 1,170.0$ 2,495.0$ 4,770.0$ 3,718.0$ 6,034.0$ 12,615.0$ 18,617.0$
Accts Rec 681.0$ 953.0$ 466.0$ 565.0$ 766.0$ 774.0$ 895.0$ 1,252.0$ 1,637.0$ 2,422.0$ 2,686.0$
% change from last year 28.5% -104.5% 17.5% 26.2% 1.0% 13.5% 28.5% 23.5% 32.4% 9.8%
Inventory 20.0$ 33.0$ 11.0$ 45.0$ 56.0$ 101.0$ 165.0$ 270.0$ 346.0$ 509.0$ 380.0$
% change from last year 39.4% -200.0% 75.6% 19.6% 44.6% 38.8% 38.9% 22.0% 32.0% -33.9%
Other Current Assets 358.0$ 414.0$ 330.0$ 441.0$ 499.0$ 716.0$ 979.0$ 2,877.0$ 4,587.0$ 7,269.0$ 7,882.0$
Total Current Assets 4,285.0$ 5,427.0$ 5,143.0$ 5,388.0$ 5,887.0$ 7,055.0$ 10,300.0$ 14,509.0$ 21,956.0$ 34,690.0$ 35,170.0$
Net PP&E 318.0$ 313.0$ 564.0$ 621.0$ 669.0$ 707.0$ 817.0$ 1,281.0$ 1,832.0$ 2,455.0$ 2,653.0$
Intangibles -$ -$ -$ 119.0$ 109.0$ 97.0$ 96.0$ 177.0$ 337.0$ 492.0$ 466.0$
Other Long-Term Assets 558.0$ 1,063.0$ 314.0$ 170.0$ 150.0$ 191.0$ 338.0$ 1,238.0$ 1,222.0$ 1,935.0$ 9,851.0$
Total Assets 5,161.0$ 6,803.0$ 6,021.0$ 6,298.0$ 6,815.0$ 8,050.0$ 11,551.0$ 17,205.0$ 25,347.0$ 39,572.0$ 48,140.0$
Accts Payable 812.0$ 1,157.0$ 801.0$ 911.0$ 1,154.0$ 1,451.0$ 1,779.0$ 3,390.0$ 4,970.0$ 5,520.0$ 4,854.0$
Short-Term Debt -$ -$ -$ -$ 304.0$ -$ -$ -$ -$ -$ -$
Taxes Payable -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$
Accrued Liabilities 737.0$ 776.0$ 717.0$ 747.0$ 899.0$ 1,229.0$ 1,705.0$ 3,081.0$ 4,329.0$ 8,572.0$ 3,338.0$
Other Short-Term
Liabilities -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 8,469.0$
Total Current Liabilities 1,549.0$ 1,933.0$ 1,518.0$ 1,658.0$ 2,357.0$ 2,680.0$ 3,484.0$ 6,471.0$ 9,299.0$ 14,092.0$ 16,661.0$
Long-Term Debt 300.0$ 300.0$ 317.0$ 316.0$ -$ -$ -$ -$ -$ -$ -$
Other Long-Term
Liabilities 208.0$ 463.0$ 266.0$ 229.0$ 235.0$ 294.0$ 601.0$ 750.0$ 1,516.0$ 4,450.0$ 5,591.0$
Total Liabilities 2,057.0$ 2,696.0$ 2,101.0$ 2,203.0$ 2,592.0$ 2,974.0$ 4,085.0$ 7,221.0$ 10,815.0$ 18,542.0$ 22,252.0$
Total Equity 3,104.0$ 4,107.0$ 3,920.0$ 4,095.0$ 4,223.0$ 5,076.0$ 7,466.0$ 9,984.0$ 14,532.0$ 21,030.0$ 25,888.0$
Total Liabilities & Equity 5,161.0$ 6,803.0$ 6,021.0$ 6,298.0$ 6,815.0$ 8,050.0$ 11,551.0$ 17,205.0$ 25,347.0$ 39,572.0$ 48,140.0$
Net Income 601.0$ 786.0$ (25.0)$ 65.0$ 69.0$ 276.0$ 1,335.0$ 1,989.0$ 3,496.0$ 4,834.0$ 5,175.0$
Depr & Amort 85.0$ 84.0$ 102.0$ 118.0$ 113.0$ 150.0$ 179.0$ 225.0$ 317.0$ 473.0$ 640.0$
Deferred Taxes (35.0)$ 163.0$ (36.0)$ (34.0)$ (11.0)$ 20.0$ 52.0$ 53.0$ 78.0$ -$ -$
Other 147.0$ (207.0)$ 144.0$ (60.0)$ 118.0$ 488.0$ 969.0$ (47.0)$ 1,579.0$ 4,289.0$ 5,529.0$
Cash from Operations 798.0$ 826.0$ 185.0$ 89.0$ 289.0$ 934.0$ 2,535.0$ 2,220.0$ 5,470.0$ 9,596.0$ 11,344.0$
Cap Ex (47.0)$ (107.0)$ (232.0)$ (174.0)$ (164.0)$ (176.0)$ (260.0)$ (657.0)$ (735.0)$ (1,091.0)$ (1,088.0)$
Purchase of Business -$ -$ -$ (52.0)$ -$ -$ -$ -$ -$ -$ -$
Other (917.0)$ (823.0)$ 1,124.0$ (26.0)$ 992.0$ (1,312.0)$ (2,296.0)$ 1,014.0$ (2,514.0)$ (7,098.0)$ (14,568.0)$
Cash from Investing (964.0)$ (930.0)$ 892.0$ (252.0)$ 828.0$ (1,488.0)$ (2,556.0)$ 357.0$ (3,249.0)$ (8,189.0)$ (15,656.0)$
Net Issuance of Stock 11.0$ (31.0)$ 42.0$ 105.0$ 27.0$ 427.0$ 543.0$ (37.0)$ 362.0$ 483.0$ 360.0$
Net Issuance of Debt -$ -$ -$ -$ -$ (300.0)$ -$ -$ -$ -$ -$
Dividends -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$
Other -$ -$ -$ -$ -$ -$ -$ 361.0$ 377.0$ 633.0$ 184.0$
Cash from Financing 11.0$ (31.0)$ 42.0$ 105.0$ 27.0$ 127.0$ 543.0$ 324.0$ 739.0$ 1,116.0$ 544.0$
Currency Adj -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$
Change in Cash (155.0)$ (135.0)$ 1,119.0$ (58.0)$ 1,144.0$ (427.0)$ 522.0$ 2,901.0$ 2,960.0$ 2,523.0$ (3,768.0)$
Cash from Operations 798.0$ 826.0$ 185.0$ 89.0$ 289.0$ 934.0$ 2,535.0$ 2,220.0$ 5,470.0$ 9,596.0$ 11,344.0$
Cap Ex (47.0)$ (107.0)$ (232.0)$ (174.0)$ (164.0)$ (176.0)$ (260.0)$ (657.0)$ (735.0)$ (1,091.0)$ (1,088.0)$
Free Cash Flow 639.0$ 763.0$ (155.0)$ 9.0$ 18.0$ 250.0$ 1,254.0$ 1,557.0$ 3,078.0$ 4,216.0$ 4,727.0$
Book Value Per Share 4.46$ 5.70$ 5.67$ 5.66$ 5.82$ 6.56$ 8.72$ 11.38$ 16.35$ 23.31$ 28.64$
Income Statement
Operating Expenses
Other Income and Expense
Balance Sheet
Assets
Cash Flows From Financing Activities
ticker
Financial Data
Free Cash Flow
Liabilities & Stockholders' Equity
Cash Flows Statement
Cash Flows From Operating Activities
Cash Flows From Investing Activities
10/1/2009 User Growth www.oldschoolvalue.com Figures in Millions except per share values
20.00%
Desired MOS Growth Discount % Price Share Value Buy under Actual D/C % 52Wk High 52Wk Low
50% 20.0% 9.0% 185.35$ 161.07$ 80.53$ 0% $188.90 $78.20
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
Revenue 6,134.0$ 7,983.0$ 5,363.0$ 5,742.0$ 6,207.0$ 8,279.0$ 13,931.0$ 19,315.0$ 24,006.0$ 32,479.0$
Gross Profit 1,696.0$ 2,166.0$ 1,235.0$ 1,603.0$ 1,708.0$ 2,259.0$ 4,043.0$ 5,598.0$ 8,154.0$ 11,145.0$
Operating Income 359.0$ 522.0$ (344.0)$ 17.0$ (1.0)$ 326.0$ 1,650.0$ 2,453.0$ 4,409.0$ 6,275.0$
Net Income 601.0$ 786.0$ (25.0)$ 65.0$ 69.0$ 276.0$ 1,335.0$ 1,989.0$ 3,496.0$ 4,834.0$
Diluted EPS 0.9$ 1.1$ (0.0)$ 0.1$ 0.1$ 0.4$ 1.6$ 2.3$ 3.9$ 5.4$
Cash from Operations 798.0$ 826.0$ 185.0$ 89.0$ 289.0$ 934.0$ 2,535.0$ 2,220.0$ 5,470.0$ 9,596.0$
Free Cash Flow 639.0$ 763.0$ (155.0)$ 9.0$ 18.0$ 250.0$ 1,254.0$ 1,557.0$ 3,078.0$ 4,216.0$
Capex 47.0$ 107.0$ 232.0$ 174.0$ 164.0$ 176.0$ 260.0$ 657.0$ 735.0$ 1,091.0$
Current Assets 4,285.0$ 5,427.0$ 5,143.0$ 5,388.0$ 5,887.0$ 7,055.0$ 10,300.0$ 14,509.0$ 21,956.0$ 34,690.0$
Current Liabilities 1,549.0$ 1,933.0$ 1,518.0$ 1,658.0$ 2,357.0$ 2,680.0$ 3,484.0$ 6,471.0$ 9,299.0$ 14,092.0$
Total Liabilities 2,057.0$ 2,696.0$ 2,101.0$ 2,203.0$ 2,592.0$ 2,974.0$ 4,085.0$ 7,221.0$ 10,815.0$ 18,542.0$
Tangible Shareholder Equity 3,104.0$ 4,107.0$ 3,920.0$ 3,976.0$ 4,114.0$ 4,979.0$ 7,370.0$ 9,807.0$ 14,195.0$ 20,538.0$
Gross Margin 27.65% 27.13% 23.03% 27.92% 27.52% 27.29% 29.02% 28.98% 33.97% 34.31%
Operating Margin 5.85% 6.54% -6.41% 0.30% -0.02% 3.94% 11.84% 12.70% 18.37% 19.32%
Net Margin 9.80% 9.85% -0.47% 1.13% 1.11% 3.33% 9.58% 10.30% 14.56% 14.88%
Current Assets>1.5 times 276.6% 280.8% 338.8% 325.0% 249.8% 263.2% 295.6% 224.2% 236.1% 246.2%
CROIC 17.7% 15.7% -3.4% 0.2% 0.4% 4.7% 15.7% 14.7% 19.6% 16.9%
FCF/Sales 10.4% 9.6% -2.9% 0.2% 0.3% 3.0% 9.0% 8.1% 12.8% 13.0%
Inventory Turnover 221.9 176.3 375.3 92.0 80.3 59.6 59.9 50.8 45.8 41.9
Return On Assets (ROA) 12.72% 13.14% -0.39% 1.06% 1.05% 3.71% 13.62% 13.83% 16.43% 14.89%
Retun On Equity (ROE) 27.04% 22.51% -0.63% 1.62% 1.66% 5.94% 21.29% 22.80% 28.52% 27.19%
Debt to Equity 66.3% 65.6% 53.6% 53.8% 61.4% 58.6% 54.7% 72.3% 74.4% 88.2%
Capitalization Ratio 8.8% 6.8% 7.5% 7.2% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
FCF to Debt 31.1% 28.3% -7.4% 0.4% 0.7% 8.4% 30.7% 21.6% 28.5% 22.7%
2003-2007 2004-2008 2003-2006 2004-2007 2005-2008 2003-2005 2004-2006 2005-2007 2006-2008 Median
Shareholder Equity 36.3% 42.5% 33.6% 41.8% 40.7% 33.8% 40.3% 38.8% 44.7% 40.3%
Free Cash Flow 261.6% 102.6% 342.3% 130.9% 49.8% 734.7% 149.6% 56.7% 64.6% 130.9%
CROIC 14.7% 15.7% 9.7% 15.2% 16.3% 4.7% 14.7% 15.7% 16.9% 15.2%
FCF/Sales 8.1% 9.0% 5.5% 8.5% 10.9% 3.0% 8.1% 9.0% 12.8% 8.5%
ROA 13.6% 13.8% 8.7% 13.7% 14.4% 3.7% 13.6% 13.8% 14.9% 13.7%
ROE 21.3% 22.8% 13.6% 22.0% 25.0% 5.9% 21.3% 22.8% 27.2% 22.0%
Revenue Growth 40.2% 40.7% 46.0% 42.6% 32.6% 49.8% 52.7% 31.3% 29.7% 40.7%
Gross Margin 29.0% 29.0% 28.2% 29.0% 31.5% 27.5% 29.0% 29.0% 34.0% 29.0%
Operating Margin 11.8% 12.7% 7.9% 12.3% 15.5% 3.9% 11.8% 12.7% 18.4% 12.3%
Net Margin 9.6% 10.3% 6.5% 9.9% 12.4% 3.3% 9.6% 10.3% 14.6% 9.9%
Earnings Growth 150.4% 96.4% 183.1% 121.8% 50.9% 295.0% 151.1% 58.7% 53.7% 121.8%
Cash from Ops Growth 108.6% 79.0% 97.3% 80.3% 55.8% 196.2% 54.2% 46.9% 107.9% 80.3%
Growing at 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
20% 5,059$ 6,071$ 7,285$ $8,173.89 $9,645.19 $11,381.32 $13,429.96 $14,013.60 $16,283.80 $18,921.78
2019 2020 2021 2022 2023 2024 2025 2026 2027 2028
19,489.43$ 20,074.11$ 20,676.33$ 21,296.62$ 21,935.52$ 22,593.59$ 23,271.40$ 23,969.54$ 24,688.63$ 25,429.28$
Total Value
Shares Outstanding 893.71
Per Share Value
Margin of Safety
Purchase Price
Current Price
Actual Discount
Enterprise Value
Enterprise Value/EBITDA
Company Name ticker
161.07$
Free Cash Flow and Tangible Shareholder Equity TrendCompany Valuation
Balance Sheet Data
Cash Flow Data
143,948$
AAPL
Efficiency & Profitability
Multi-Year Performance
50%
18.859
80.53$
185.35$
893.71
0%
141,840.00$
Apple Inc
Debt Related
Financial Data
Projection of future Free Cash Flow
Income Sheet Data
Margins
User Input Params
$639.0 $763.0 $(155.0) $9.0 $18.0 $250.0 $1,254.0 $1,557.0 $3,078.0
$4,216.0 $3,104.0 $4,107.0 $3,920.0 $3,976.0 $4,114.0 $4,979.0 $7,370.0
$9,807.0
$14,195.0
$20,538.0
$(5,000.0)
$-
$5,000.0
$10,000.0
$15,000.0
$20,000.0
$25,000.0
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
FCF Shareholder Equity
Sales, Receivables, Inventory
Efficiency & Profitability Debt
Multi-Year Performance Graph
Margin Percentages
27.65% 27.13%
23.03%
27.92% 27.52% 27.29%29.02% 28.98%
33.97% 34.31%
5.85% 6.54%
-6.41%
0.30% -0.02%
3.94%
11.84% 12.70%
18.37% 19.32%
9.80% 9.85%
-0.47%1.13% 1.11%
3.33%
9.58% 10.30%
14.56% 14.88%
-10.00%
-5.00%
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
35.00%
40.00%
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
Gross Margin
Operating Margin
Net Margin
-10.0%
-5.0%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
CROIC FCF/Sales ROA ROE
$-
$5,000.0
$10,000.0
$15,000.0
$20,000.0
$25,000.0
$30,000.0
$35,000.0
$40,000.0
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 TTM
Sales Accts Receivable Inventory
29.0% 29.0% 28.2% 29.0% 31.5% 27.5% 29.0% 29.0% 34.0%
11.8% 12.7% 7.9% 12.3% 15.5%3.9% 11.8% 12.7%
18.4%9.6% 10.3%6.5%
9.9%12.4%
3.3%9.6% 10.3%
14.6%
150.4%
96.4%
183.1%
121.8%
50.9%
295.0%
151.1%
58.7%53.7%
13.6%
13.8%
8.7%
13.7%
14.4%
3.7%
13.6%
13.8%14.9%
21.3%
22.8%
13.6%
22.0%
25.0%
5.9%
21.3%
22.8%27.2%
0.0%
50.0%
100.0%
150.0%
200.0%
250.0%
300.0%
350.0%
400.0%
2003-2007 2004-2008 2003-2006 2004-2007 2005-2008 2003-2005 2004-2006 2005-2007 2006-2008
Gross Margin Operating Margin Net Margin Earnings Growth ROA ROE
-20.0%
0.0%
20.0%
40.0%
60.0%
80.0%
100.0%
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
Debt to Equity Capitalization Ratio FCF to Debt
Company Name
Apple Inc www.oldschoolvalue.com
Figures in Millions except per share values
Desired MOS Growth Discount % Price Share Value Buy under Actual D/C % 52Wk High 52Wk Low
50% 20.0% 9% 185.35$ 161.07$ 80.53$ 0% 188.90$ 78.20$
Historical Stock Price Vs Intrinsic Value Per Share
ticker
AAPL10/1/2009
-50
0
50
100
150
200
250
1/21/2003 7/21/2003 1/21/2004 7/21/2004 1/21/2005 7/21/2005 1/21/2006 7/21/2006 1/21/2007 7/21/2007 1/21/2008 7/21/2008 1/21/2009 7/21/2009
Historical Price Intrinsic Value Buy Price Linear (Historical Price)
10/1/2009 User Growth Figures in Millions except per share values
30.00% www.oldschoolvalue.com
Desired MOS Growth Price Actual DC% Share Value Buy under P/B Ratio 9
66% 30.0% 183.62$ 0% 102.87$ 34.97$ 7.95
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
0.90$ 1.09$ (0.04)$ 0.09$ 0.10$ 0.36$ 1.56$ 2.27$ 3.93$ 5.36$
2009 2010 2011 2012
2.99$ 3.92$ 5.13$ 5.56$
Median
2003-2007 2004-2008 2003-2006 2004-2007 2005-2008 2003-2005 2004-2006 2005-2007 2006-2008
Earnings Growth 150.4% 96.4% 183.1% 121.8% 50.9% 295.0% 151.1% 58.7% 53.7% 121.8%
EPS Weighted Average 1.64$ 2.70$ 1.07$ 2.03$ 3.28$ 0.67$ 1.40$ 2.59$ 3.85$ $2.0
2.03$
30.00%
6.26
23.31
7.95
158.71$
102.87$
66.00%
34.97$
185.35$
0%
Diluted EPS
Multi-Year Performance
Enterprise Value Per Share
Company Stats
Normal Earnings
Expected 5 Year Growth
20 yr A Corp Bond Rate
Actual Discount
Company Name ticker
Apple Inc AAPL
Earnings
User Input ParamsNet Net Working Capital
4.67$
Purchase Price
Current Price
Company Valuation
Per Share Value
Desired MOS
Book Value Per Share
Price to Book Ratio
$0.90 $1.09
$(0.04)
$0.09 $0.10 $0.36
$1.56
$2.27
$3.93
$5.36
$2.99
$3.92
$(1.00)
$-
$1.00
$2.00
$3.00
$4.00
$5.00
$6.00
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
EPS
Linear (EPS)
Old School Value | http://www.oldschoolvalue.com
Company Name ticker
Apple Inc AAPLFigures in Millions except per share values
EPV Current Price MOS % Tangible BV NNWC
68.52$ 185.35$ 0% 30.26$ 7.31$
Quarterly numbers based on: 2009 Q3 Data Source
Statement Source Date: 22-Jul-09 MSN
Assets Book Value
Adjust
+/- Multiplier
Reproduction
Asset Value 2002 2003 2004 2005 2006 2007 2008 TTM
Cash & Equivalents 24,222.0$ 24,222.0$
CAPEX
(statements) 174.0$ 164.0$ 176.0$ 260.0$ 657.0$ 735.0$ 1,091.0$ 1,088.0$
Marketable Securities 18,617.0$ 18,617.0$ Last 6 yrs
Accounts Receivable - Gross 2,686.0$ 2,686.0$ Last 5 yrs
Other Receivable 1,494.0$ 1,494.0$ Last 4 yrs
Receivables 4,180.0$ 4,180.0$ Last 3 yrs 513.0$ 570.0$ 514.0$ 600.0$ 1,093.0$ 1,652.0$ 2,483.0$ 2,914.0$
Inventories: Raw Materials -$ Last 2 yrs 406.0$ 338.0$ 340.0$ 436.0$ 917.0$ 1,392.0$ 1,826.0$ 2,179.0$
Inventories: Work in Progress -$ Last 1 yr 174.0$ 164.0$ 176.0$ 260.0$ 657.0$ 735.0$ 1,091.0$ 1,088.0$
Inventories: Purchased
Components -$ PPE 621.0$ 669.0$ 707.0$ 817.0$ 1,281.0$ 1,832.0$ 2,455.0$ 2,653.0$
Inventories: Finished Goods -$ Sales 5,742.0$ 6,207.0$ 8,279.0$ 13,931.0$ 19,315.0$ 24,006.0$ 32,479.0$ 34,562.0$
Inventories: Other 380.0$ R&D 447.0$ 471.0$ 489.0$ 534.0$ 712.0$ 782.0$ 1,109.0$ 1,273.0$
Inventories -- Total 380.0$ 380.0$
Prepaid Expenses -$ -$
Current Defered Income Taxes 1,731.0$ 1,731.0$
Other Current Assets 6,388.0$ 6,388.0$
Total Current Assets 36,901.0$ 36,901.0$
Goodwill, Net 207.0$ 0% 0.0$
Intangibles, Net 370.0$ 0% 0.0$
Intangibles 577.0$ 0.0$
Property/Plant/Equipment - Net 2,653.0$ 2,653.0$
Long Term Investments 6,899.0$ 6,899.0$
Note Receivable - Long Term -$ -$
Other Long Term Assets, Total 2,841.0$ 2,841.0$
Total Assets 49,871.0$ 49,294.0$
Liabilities & Equity Book Value Corrected BV Multiplier
Reproduction
Asset Value
Accounts Payable 4,854.0$ 4,854.0$
Accrued Expenses 933.0$ 933.0$
Accrued Liabilities -$ -$
Notes Payable/Short Term Debt -$ -$ Total Per Share Shares Outstanding 893.7 893.71
Current Port. of LT Debt/Capital
Leases -$ -$ Tangible BV 27,042$ 30.26$
Balance Sheet Assets 49,871.0$
Other Current Liabilities 10,874.0$ 10,874.0$ Adjusted BV 27,042$ 30.26$ Adjusted Assets 49,294.0$
Total Current Liabilities 16,661.0$ 16,661.0$ NNWC 6,530$ 7.31$ Total Liabilities 22,252.0$
Long-Term Debt -$ -$
Reprod. Cost of
Assets 55,270$ 61.84$ Total Equity 27,619.0$
Capital Lease Obligations -$ -$
Reprod. Cost of
Assets BV 33,018$ 36.95$
Deferred Income Taxes 970.0$ 970.0$
Total Net
Reprod. Cost 9,446$ 10.57$ Marketing/Brand Value 4,354.0$
Minority Interest -$ -$ R&D Value 1,622.4$
Total Other Liabilities 4,621.0$ 4,621.0$
Total Liabilities 22,252.0$ 22,252.0$ Cash Needed for Business 345.6$
Common Stock Equity 25,888.0$ 25,888.0$ Interest Bearing Debt -$ Retained Earnings 17,878.0$ 17,878.0$ Non Interest Bearing Debt 22,252.0$
Total Capitalization 25,888.0$ 25,888.0$ Excess Cash 23,572.4$
Total Equity 25,888.0$ 27,619.0$
Total Liabilities & Stock Equity 48,140.0$ 48,140.0$
9%
User Discount %
9%
10/1/2009
Reproduction Asset Value
Asset Valuation Data
Net Reprod. Cost
$10.57
Asset Valuation
Discount Rate %
$-
$500.0
$1,000.0
$1,500.0
$2,000.0
$2,500.0
$3,000.0
$3,500.0
2002 2003 2004 2005 2006 2007 2008 TTM
Last 6 yrs
Last 5 yrs
Last 4 yrs
Last 3 yrs
Last 2 yrs
Last 1 yr
PPE
Old School Value | http://www.oldschoolvalue.com
Period End Date 25-Sep-04 24-Sep-05 30-Sep-06 29-Sep-07 27-Sep-08 27-Sep-08 27-Dec-08 28-Mar-09 27-Jun-09
Period Length 52 Weeks 52 Weeks 53 Weeks 52 Weeks 52 Weeks 13 Weeks 13 Weeks 13 Weeks 13 Weeks
Statement Source 10-K 10-K 10-K 10-K 10-K 10-K 10-Q 10-Q 10-Q
Income Statement 2004 2005 2006 2007 2008 2008 Q4 2009 Q1 2009 Q2 2009 Q3 TTM User Input
Sales 8,279$ 13,931$ 19,315$ 24,006$ 32,479$ $7,895.0 10,167.0$ 8,163.0$ 8,337.0$ 34,562.0$
EBIT 383.0$ 1,815.0$ 2,818.0$ 5,008.0$ 6,895.0$ $1,582.0 $2,284.0 $1,730.0 $1,732.0
EBIT Margin 4.6% 13.0% 14.6% 20.9% 21.2% 20.0% 22.5% 21.2% 20.8% 21.2%
EBIT at user defined % of sales -$
EBIT User Defined % Margin 4.6% 13.0% 14.6% 20.9% 21.2% 20.0% 22.5% 21.2% 20.8% 21.2%
Normalized EBITDA 486.0$ 1,822.0$ 2,678.0$ 4,726.0$ 6,794.0$ $1,576.0 2,284.0$ 1,839.0$ 1,848.0$ 7,547.0$
Normalized EBIT 336.0$ 1,643.0$ 2,453.0$ 4,409.0$ 6,275.0$ $1,442.0 2,126.0$ 1,667.0$ 1,672.0$ 6,907.0$
SG&A 500.5$ 652.4$ 851.6$ 1,037.1$ 1,316.4$ $349.7 349.7$ 381.9$ 344.8$ 1,425.9$ 35%
R&D 122.8$ 133.8$ 178.0$ 195.5$ 277.3$ $74.5 74.5$ 78.8$ 79.8$ 307.5$
Adjusted EBIT 1,006.3$ 2,601.2$ 3,847.6$ 6,240.6$ 8,488.6$ $2,006.2 2,708.2$ 2,190.6$ 2,156.5$ 9,061.4$
Adjusted EBIT % 12.2% 18.7% 19.9% 26.0% 26.1% 25.4% 26.6% 26.8% 25.9% 26.2%
Income Before Tax 370.0$ 1,808.0$ 2,818.0$ 5,008.0$ 6,895.0$ $1,582.0 2,284.0$ 1,730.0$ 1,732.0$ 7,328.0$
Income Tax - Total 104.0$ 480.0$ 829.0$ 1,512.0$ 2,061.0$ $446.0 679.0$ 525.0$ 503.0$ 2,153.0$
Tax Rate 28.1% 26.5% 29.4% 30.2% 29.9% 28.2% 29.7% 30.3% 29.0% 29.4%
Adjusted Earnings After tax 723.4$ 1,910.6$ 2,715.7$ 4,356.4$ 5,951.3$ $1,440.6 1,903.06$ 1,525.82$ 1,530.22$ 6,399.7$
Depreciation & Amortization 150.0$ 179.0$ 225.0$ 317.0$ 519.0$ $134.0 158.0$ 172.0$ 176.0$ 640.0$
Add user defined % of D&A 30.0$ 35.8$ 45.0$ 63.4$ 103.8$ $26.8 31.6$ 34.4$ 35.2$ 128.0$
Income as Adjusted 753.4$ 1,946.4$ 2,760.7$ 4,419.8$ 6,055.1$ $1,467.4 1,934.7$ 1,560.2$ 1,565.4$ 6,527.7$
Income as Adjusted % 9.1% 14.0% 14.3% 18.4% 18.6% $0.2 $0.2 $0.2 $0.2 18.9%
Operating Income as Reported 326.0$ 1,650.0$ 2,453.0$ 4,409.0$ 6,275.0$ $1,442.0 2,126.0$ 1,667.0$ 1,672.0$ 6,907.0$
2004 2005 2006 2007 2008 TTM Average
PPE as a % of Sales 8.5% 5.9% 6.6% 7.6% 7.6% 7.7%
Sales Growth (decrease) to Prior
Year 2,072.0$ 5,652.0$ 5,384.0$ 4,691.0$ 8,473.0$ 2,083.0$
Capex 176.0$ 260.0$ 657.0$ 735.0$ 1,091.0$ 1,088.0$ 583.8$
Maintenance Capex (0.9)$ (71.5)$ 299.9$ 377.0$ 450.5$ 928.1$ 330.5$
Depr & Amort 150.0$ 179.0$ 225.0$ 317.0$ 473.0$ 640.0$ 330.7$
2004-2005 2005-2006 2006-2007 2007-2008 2008-TTM
158.3% 41.8% 60.1% 37.0% 7.8% 3,692.9$
1,349.9$ 2,353.5$ 3,590.2$ 5,237.4$ 6,291.4$ 3,187.1$
6,527.7$
2004-2006 2005-2007 2006-2008 2007-TTM
91.4% 50.7% 48.1% 21.5%
1,820.2$ 3,042.3$ 4,411.9$ 5,667.5$ 9%
3,692.9$
2004-2007 2005-2008 2006-TTM 330.5$
31.4% 29.9% 13.9% -$
2,470.1$ 3,795.5$ 4,940.8$ 345.62$
24,222$
2004-2008 2005-TTM 23,876.38$
68.4% 35.3% 894
3,187.1$ 4,341.9$
EPV Per Share
+Cash-Debt
Adjustment Per Share
67,246.7$ 75.24$ 91,123.1$ 101.96$
48,033.4$ 53.75$ 71,909.8$ 80.46$
37,359.3$ 41.80$ 61,235.7$ 68.52$ 30,566.7$ 34.20$ 54,443.1$ 60.92$
25,864.1$ 28.94$ 49,740.5$ 55.66$
7,328.0$
5 Year Annual Data
Multiyear Timeframe Adjusted
Income & Growth
$3,692.9
Earnings Power Value (EPV)
Normalized Adjusted Income
Normal. Adj. Income Growth
39.4%
Past 4 Quarterly Data
Cash - Debt
13%
TTM Adjusted Income
Possible Values for Override Box
11%
EPV Data
Cost of Capital
Avg Adj. Income 5 yrs
Interest Bearing Debt
1% of sales
Cash & Equiv
Shares
9%
5%
7%
Cost of Capital Rates
Average Maintenance Capex
Normalized Adjusted Income
Normalized Income
Company Name ticker
Apple Inc AAPL10/1/2009
AAPL MSFT IBM HPQ PALM RIMM Industry Ranking
Stock Price 185.35 24.95 118.66 46.33 16.92 67.81 NA NA
Market Cap (millions) 166,040 222,760 155,550 109,850 2,410 38,580 NA NA
52-Week High 188.90 27.47 122.88 48.00 $18.09 Error NA NA
52-Week Low 78.20 14.87 69.50 25.39 1.14 Error NA NA
% off 52-Week Low 137.0% 73.0% 72.1% 85.9% 1431.6% #VALUE! NA NA
Valuation Ratios
P/E Ratio (TTM) 32.4 15.88 12.79 15.9 0 19.07 17.84 1
Price to Sales (TTM) 4.8 3.93 1.61 0.96 5.69 2.92 0.62 2
Price to Book (MRQ) 6.41 5.79 10.19 2.71 0 5.49 2.38 2
Price to Tangible Book (MRQ) 6.56 9.08 0 82.55 0 6.93 4.15 4
Price to Cash Flow (TTM) 28.56 13.4 8.8 9.36 0 16.81 10.01 1
Price to Free Cash Flow (TTM) 16.31 20.06 12.44 12.9 0 86.02 30.92 3
Enterprise Value/Revenue (TTM) 4.1 3.51 1.79 0.99 6.1 Error NA NA
Enterprise Value/EBITDA (TTM) 18.862 8.812 7.468 7.481 -8.445 Error NA NA
Dividends
Dividend Yield NA 2.01 1.84 0.68 NA NA 0.01
Dividend Yield - 5 Year Avg. 0 3.96 1.27 0.91 0 0 1.71 4
Dividend 5 Year Growth Rate 0 26.58 24.7 0 0 0 7.28 3
Payout Ratio (TTM) 0 31.71 21.53 10.46 0 0 29.02 4
Growth Rates
Sales (MRQ) vs Qtr. 1 Yr. Ago 11.7 -17.29 -13.31 -2.07 -81.46 36.8 -4.99 2
Sales (TTM) vs TTM 1 Yr. Ago 4.8 3.93 1.61 0.96 5.69 2.92 0.62 2
Sales - 5 Yr. Growth Rate 39.23 9.67 3.06 10.13 -4.97 79.45 29.2 2
EPS (MRQ) vs Qtr. 1 Yr. Ago 13.89 -25.55 17.61 -15.77 -201.62 -3.81 -102.49 2
EPS (TTM) vs TTM 1 Yr. Ago 11.88 -13.36 15.54 -7.71 -427.44 15.67 0 3
EPS - 5 Yr. Growth Rate 124.7 16.65 18.93 31.39 0 99.92 11.65 1
Capital Spending - 5 Yr. Growth Rate 48.87 22.98 -0.35 8.43 18.42 94.92 21.1 2
Financial Strength
Quick Ratio (MRQ) 2.09 1.8 1.15 1.03 0.58 2.14 1.45 2
Current Ratio (MRQ) 2.11 1.82 1.22 1.17 0.62 2.41 1.85 2
LT Debt to Equity (MRQ) 0 9.47 135.68 33.45 0 0 18.24 4
Total Debt to Equity (MRQ) 0 14.53 190.98 41.36 0 0 30.11 4
Profitability
Gross Margin (TTM) 35.49 79.2 45.14 23.35 13.65 43.19 8.35 4
Gross Margin - 5 Yr. Avg. 31.83 81.06 41.09 24 31.69 49.69 18.85 4
EBITD Margin (TTM) 21.84 37.94 21.79 12.23 -83.11 22.52 0 3
EBITD - 5 Yr. Avg. 16.82 38.98 17.89 9.65 -1.13 27.58 7.92 4
Operating Margin (TTM) 19.98 33.56 16.48 8.27 -90 20.58 2.58 3
Operating Margin - 5 Yr. Avg. 15.4 36.03 12.54 6.92 -3.19 24.25 5.34 3
Pre-Tax Margin (TTM) 21.2 33.92 17.57 7.69 -102.25 21.03 2.67 2
Pre-Tax Margin - 5 Yr. Avg. 17.24 38.82 14.01 7.19 -3.04 25.58 5.87 3
Net Profit Margin (TTM) 14.97 24.93 13 6.25 -195.37 15.41 2 3
Net Profit Margin - 5 Yr. Avg. 12.15 28.01 9.9 5.76 -5.86 18.69 4.09 3
Management Effectiveness
Return On Assets (TTM) 12.96 19.34 11.26 7.08 -87.72 25.23 3.45 3
Return On Assets - 5 Yr. Avg. 13.96 19.63 8.71 6.62 -6.44 23.7 6.9 3
Return On Investment (TTM) 19.18 31.08 17.64 11.88 -204.16 33.6 7.23 3
Return On Investment - 5 Yr Avg 21.57 28.63 13.69 11.36 -9.79 30.42 13.65 3
Return On Equity (TTM) 22.74 38.42 57.96 18.3 0 34.07 8.38 4
Return On Equity - 5 Yr. Avg. 24 33.44 33.46 14.59 -14.6 30.99 14.6 4
Efficiency
Revenue/Employee (TTM) 1080063 628355 244112 365125 464914 1030820 8635093 NA
Net Income/Employee (TTM) 161719 156656 31745 22816 -908304 158844 169986 NA
Receivable Turnover (TTM) 16.12 4.72 3.81 6.97 4 6.39 5.72 NA
Inventory Turnover (TTM) 48.21 14.28 19.04 12.82 11.98 13.81 8.77 NA
Asset Turnover (TTM) 0.87 0.78 0.87 1.13 0.45 1.64 1.28 3
www.oldschoolvalue.com
Company Name
Apple Inc www.oldschoolvalue.com
Figures in Millions except per share values
TTM 2008/09 2007/09 2006/09 2005/09 2004/09 2003/09 2002/09 2001/09 2000/09 1999/09 TTM 2007/12 2006/12 2005/12 2004/12 2003/12 2002/12 2001/12 2000/12 1999/12 1998/12
15.0% 14.9% 14.6% 10.3% 9.6% 3.3% 1.1% 1.1% -0.5% 9.8% 9.8% 11344.0 9596.0 5470.0 2220.0 2535.0 934.0 289.0 89.0 185.0 826.0 798.0
% Change 2.2% 41.4% 7.5% 187.5% 199.9% -1.8% 342.8% -104.7% 0.5% -- % Change 75.4% 146.4% -12.4% 171.4% 223.2% 224.7% -51.9% -77.6% 3.5% --
Now 2007/12 2006/12 2005/12 2004/12 2003/12 2002/12 2001/12 2000/12 1999/12 1998/12 Now 2007/12 2006/12 2005/12 2004/12 2003/12 2002/12 2001/12 2000/12 1999/12 1998/12
28.1% 25.0% 27.4% 23.5% 20.1% 8.1% 2.6% 3.3% -4.7% 16.2% 13.3% 5.3% 11.0% 3.2% 4.7% 5.0% 4.1% 3.2% 15.8% -6.6% 25.0% 5.2%
% Change -8.8% 16.8% 16.7% 149.2% 206.7% -20.3% 170.2% -129.1% 22.1% -- % Change 241.0% -31.0% -7.3% 22.4% 26.9% -79.5% 340.1% -126.3% 380.5% --
2009/06 2007/12 2006/12 2005/12 2004/12 2003/12 2002/12 2001/12 2000/12 1999/12 1998/12 2009/06 2007/12 2006/12 2005/12 2004/12 2003/12 2002/12 2001/12 2000/12 1999/12 1998/12
10.7% 12.2% 13.8% 11.6% 11.6% 3.4% 1.0% 1.0% -0.6% 11.6% 11.6% 20.0% 23.0% 24.1% 19.9% 17.9% 5.4% 1.6% 1.6% 0.0% 19.5% 20.3%
% Change -11.6% 19.0% 0.0% 241.2% 240.0% 0.0% 266.7% -105.2% 0.0% -- % Change -4.6% 21.1% 11.2% 231.5% 237.5% 0.0% #DIV/0! -100.0% -3.9% --
2009/06 2007/12 2006/12 2005/12 2004/12 2003/12 2002/12 2001/12 2000/12 1999/12 1998/12 2009/06 2007/12 2006/12 2005/12 2004/12 2003/12 2002/12 2001/12 2000/12 1999/12 1998/12
2.1 2.5 2.4 2.2 3.0 2.6 2.5 3.2 3.4 2.8 2.8 2.1 2.4 2.3 2.2 2.9 2.6 2.5 3.2 3.4 2.8 2.8
% Change 4.3% 5.3% -24.2% 12.3% 5.4% -23.1% -4.1% 20.7% 1.5% -- % Change 4.4% 5.6% -24.4% 12.1% 4.9% -23.2% -4.7% 21.2% 1.3% --
Magic Formula Investing -- Earnings Yield
Return on Assets (ROA) Return on Equity (ROE)
Current Ratio Quick Ratio
10/1/2009
ticker
AAPL
Net Profit Margin
Magic Formula Investing -- Return on Capital
Cash Flow (Continuing Operations)
15.0% 14.9% 14.6%
10.3% 9.6%
3.3%1.1% 1.1%
-0.5%
9.8% 9.8%
28.1% 25.0% 27.4% 23.5%20.1%
8.1%
2.6% 3.3%
-4.7%
16.2%13.3%
10.7%12.2% 13.8% 11.6% 11.6%
3.4%
1.0% 1.0%
-0.6%
11.6% 11.6%
2.12.5 2.4 2.2
3.02.6 2.5
3.2 3.4
2.8 2.8
11344.09596.0
5470.0
2220.0 2535.0934.0 289.0 89.0 185.0 826.0 798.0
5.3%
11.0%
3.2% 4.7% 5.0% 4.1% 3.2%
15.8%
-6.6%
25.0%
5.2%
20.0%23.0% 24.1%
19.9%17.9%
5.4%
1.6% 1.6%0.0%
19.5% 20.3%
2.12.4 2.3 2.2
2.92.6 2.5
3.2 3.4
2.8 2.8
10/1/2009 www.oldschoolvalue.com Figures in Millions except per share values
Criteria over 5yrs Value User Points
> 25% or 50% depending on
moat0% 0
> 66% 0% 0
Criteria over 5yrs Value Points User Points
10% 40.7% 2
30% 29.0% 0
15% 12.3% 0
10% 9.9% 0
10% 121.8% 2
Criteria over 5yrs Value Points User Points
15% 80.3% 2
13% 15.2% 1
10% 130.9% 2
7% 8.5% 1
Consistent over 10yrs N/A N/A
Consistent over 10yrs N/A N/A
Criteria for TTM Value Points User Points
> 1.5 x current liabilities 2.5 1
N/A 7.95 N/A N/A
< 100% 88.2% 1
> 10% 22.7% 2
< 30% 0% 2
< 15% of assets 1.0% 2
User Points Max Points
max 2
max 2
max 2
max 2
max 2
max 2
User Points Max Points
max 2
max 1
max 1
max 1
max 1
max 2
max 1
max 1 Capital intensive company? (1 for no, 0 for yes)
Diverse customers? (1 for diverse, 0 for concentrated)
Involved in competition? Monopoly, duopoly, crowded
Company has a recurring revenue stream?
Able to increase prices and retain customers?
Compete on price? (1 for no, 0 for yes)
Barriers of entry to the business?
Network effect? E.g. eBay
Business Model Comment
Growth due to:
a) existing product / existing market (yes/no)
b) existing product / new market (yes/no)
c) new product / existing market (yes/no)
d) new product / new market (yes/no)
a) Yes
b) No
c) No
d) NO
Low barriers to entry and exit?
Experience goods (brand effect, trademarks)
High switching costs?
Apple Inc.designs, manufactures, and markets personal computers, portable digital music players, and mobile communication devices and
sells a variety of related software, services, peripherals, and networking solutions. The Company sells its products worldwide through its
online stores, its retail stores, its direct sales force, and third-party wholesalers, resellers, and value-added resellers. In addition, the
Company sells a variety of third-party Macintosh (Mac), iPod and iPhone compatible products, including application software, printers,
storage devices, speakers, headphones, and various other accessories and peripherals through its online and retail stores, , and digital
content through the iTunes Store. It sells to consumer, small and mid-sized business (SMB), education, enterprise, government, and creative
customers.
Competitive Advantage Comment
Stable market share?
Dominant company in industry, segment?
Price to Book ratio < 2
Debt to Equity
FCF to Debt
Capitalization Ratio
Intangibles % of assets
Company Assessment: Qualitative
Median FCF growth positive and consistent
Median FCF/Sales
Consistent ROE (manually check)
Consistent ROA (manually check)
Balance Sheet
Current assets > 1.5 x current liabilities
Median Operating Margin
Median Net Margin
Median EPS growth
Business and Management Performance
Cash growth from Operations
CROIC is postive and capable of paying off financing
DCF Valuation Discount
Graham Intrinsic Value Discount
Margins, Profit and Growth
Median Revenue growth
Median Gross Margin
Company Name ticker
AAPLApple Inc
Company Assessment: Quantitative
Valuation
User Points Max Points
max 1
max 1
max 1
max 1
User Points Max Points
max 1
max 1
max 1
Total Points out of 5
0.0
2.0
3.0
4.0
0.0
0.0
0.0
Low Risk High Growth Under Valued Well Managed Good Financial Health Strong Moat
2.5 5.0 0.0 4.5 5.0 4.0
2.5 5.0 4.5 5.0 4.0
Margins, Profit and Growth
Business and Management Performance
Balance Sheet
Competitive Advantage
Business Model
Management
Status quo bias?
False consensus bias?
Category
Valuation
st
Bias from commitment and consistency tendency?
Pavlovian association?
Social proof bias?
Sunk cost mentality?
Slow in changing opinion?
Psychological denial ?
Am I too overconfident on the situation? No
Performed probability analysis for -ve factors?
Too much loss aversion?
Hindsight bias? No
Framing issues correctly and in different manners? Yes
Is there a data framing bias? No
Industry leader or lagger? (1 for leader, 0 for lagger)
Psychological Factors to Consider. Not Weighted. Comment
Recency bias? No
Industry Comment
Boring industry? (1 for slow, 0 for fast industry)
Can company adapt to changing industry environment?
Candid management on positives and negatives?
Management performance at previous jobs?
Compensation levels compared to sales?
Management Comment
High insider ownership?
0.0
1.0
2.0
3.0
4.0
5.0Low Risk
High Growth
Under Valued
Well Managed
Good Financial Health
Strong Moat
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