AAPL Value Scorecard - Apple Inc.

Value Scorecard · run 2026-10-18

13 value checks: 12 scored 1 to 5, plus moat evidence

35/60

low-moderate value score

Earnings & returns

EPS Trend

4/5

Diluted EPS: $6.11 (2022), $6.13 (2023), $6.08 (2024), $7.46 (2025). It rose every year but one and ended above 2022; the framework scores that as 4.

ROE Trend

5/5

ROE (net income / common equity): 197.0% (2022), 156.1% (2023), 164.6% (2024), 151.9% (2025). Median 160.3%, lowest 151.9%; the framework scores a median above 20% as 5.

ROIC

5/5

ROIC of 68.7%: operating income of $133.05B divided by $193.61B of capital (total assets $359.24B minus current liabilities $165.63B), fiscal year to Sep 27, 2025, as filed in the 10-K (SEC EDGAR). The framework scores above 20% as 5.

Profit Margins

5/5

Net margin of 27.6%; the framework scores above 20% as 5; gross margin 48.7%, operating margin 32.6%.

Balance sheet & cash

Debt-to-Equity

4/5

Debt-to-equity of 0.78; the framework scores 0.3-0.8 as 4 (total debt $84.34B, total cash $62.40B).

Free Cash Flow

2/5

Free cash flow (operating cash flow minus capital expenditure): $111.44B (2022), $99.58B (2023), $108.81B (2024), $98.77B (2025). It ended at or below 2022; the framework scores that as 2.

Retained Earnings

1/5

Retained earnings, as filed in the 10-Ks (SEC EDGAR): -$3.07B (2022), -$214.00M (2023), -$19.15B (2024), -$14.26B (2025). The latest balance is negative (an accumulated deficit); the framework scores that as 1.

Valuation models

Graham IV

1/5

IV = EPS x (8.5 + 2g) x (4.4 / Y) = $8.72 x (8.5 + 2 x 10.3) x (4.4 / 4.5) = $248.11. Current price $343.46; price is 38.4% above the model value.

DCF Value

1/5

FCF/share = $7.381, stage 1 growth = 4.2% for 5 years, terminal growth = 3%, discount rate = 10%. Stage 1 PV = $31.46, PV of terminal value = $82.84, DCF value = $114.30. Current price $343.46; price is 200.5% above the model value.

Margin of Safety

1/5

Graham value $248.11 (price is 38.4% above the model value); DCF value $114.30 (price is 200.5% above the model value).

Price-to-Book

1/5

P/B of 46.67; the framework scores above 5.0 as 1.

Business quality

Moat Evidence

Not scored

A moat (a brand, a network, switching costs, patents, scale, a licence) is not a number in the filings, so Valerius doesn’t score it. Below are the figures and the words moat analysis starts from, from the company’s own 10-K filings. The conclusion is yours.

Return on capital, each year

Above 15% in 10 of 10 years (2016-2025); lowest 22.3%, highest 68.7%.

Gross margin, each year

Between 37.8% and 46.9% over 10 years (a range of 9.1 points).

Competition, in the company’s own words · 10-K filed Oct 31, 2025

The markets for the Company’s products and services are highly competitive and are characterized by aggressive price competition, downward pressure on gross margins, continual improvement in product performance, and price sensitivity on the part of consumers and businesses. The markets in which the Company competes are further defined by frequent introduction of new products and services, short product life cycles,

The opening of the company’s “Competition” section in its 10-K, quoted word for word, not summarized or edited. It is the company’s own description, not Valerius’s view, and may include the company’s expectations. Open the filing.

Return on capital = operating income / (total assets − current liabilities), the ROIC row’s definition; 15% is the framework’s return threshold. Gross margin = gross profit / revenue. Both from each year’s 10-K via SEC EDGAR. Moat analysis commonly looks at whether returns and margins held up over many years. These figures don’t say whether the company has an advantage, what it is, or whether it will last.

Capital Allocation

5/5

Capital allocation, 2022-2025: dividends or buybacks paid in every year (pass); $413.13B paid out against $418.60B of free cash flow (pass); total debt $132.48B to $98.66B, down 25.5%, 0.7x EBITDA (pass: not up more than 10%); shares outstanding 15.94B to 14.77B, down 7.3% (pass). 4 of 4 tests passed; the framework scores that as 5.

Filings

Company notices to the SEC

Not scored

Three kinds of event the company reported to the SEC in the last 5 years, from its filings on SEC EDGAR.

These are events the company reported to the SEC. An auditor change or a late filing can have many causes; each date links to the filing, where the company explains it. Valerius does not score these.

How the Graham and DCF values were calculated

  Graham Formula:
    IV = EPS x (8.5 + 2g) x (4.4 / Y)
    EPS = $8.72, g = 10.3%, Y = 4.5
    IV = $248.11
    Current price $343.46 vs Graham value $248.11 — price is 38.4% above the model value.

  DCF:
    FCF/share = $7.381
    Stage 1 growth = 4.2% for 5 years | terminal growth = 3.0% | discount rate = 10.0%
      Y1: $7.691 → PV $6.992
      Y2: $8.014 → PV $6.623
      Y3: $8.351 → PV $6.274
      Y4: $8.702 → PV $5.943
      Y5: $9.067 → PV $5.630
    Stage 1 PV sum = $31.46
    Terminal value at end of Y5 = $133.41
    PV of terminal value = $82.84
    DCF value = $114.30
    Current price $343.46 vs DCF value $114.30 — price is 200.5% above the model value.

Data from yfinance summary figures and financial statements, and from the company’s 10-K filings via SEC EDGAR; computed at a price of $343.46. Every score is calculated from the figures by the framework’s fixed rules, and the explanation beside it is generated from the same figures: Graham value, DCF value, margin of safety, ROIC, profit margins, debt-to-equity, price-to-book, EPS trend, ROE trend, free cash flow, retained earnings and capital allocation. No AI is involved in this scorecard. The moat is shown as evidence, without a score. Read each score with the figures beside it. Intrinsic value calculations are model outputs based on stated assumptions, not predictions.

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