Morningstar Equity Research Apple Inc AAPL (NAS) | QQQ Last Price Fair Value Consider Buy Consider Sell Uncertainty Economic Moat™ Moat Trend™ Stewardship Morningstar Credit Rating Industry Group 541.65 USD 570.00 USD 342.00 USD 883.50 USD High Narrow Positive Standard AA- Computer Hardware Apple will have to fend off increased competition from Vital Statistics Android-based competitors in the years ahead. Market Cap (USD Mil) 483,146 52-Week High (USD) 575.13 52-Week Low (USD) 385.10 Brian Colello, CPA Investment Thesis 28 Jan 2014 52-Week Total Return % 29.1 Senior Analyst
[email protected] We believe Apple's strength lies in its experience and expertise in YTD Total Return % -2.9 +1 (312) 384-3742 Last Fiscal Year End 30 Sep 2013 integrating hardware, software, services, and third-party 5-Yr Forward Revenue CAGR % 3.2 applications into differentiated devices that allow Apple to capture 5-Yr Forward EPS CAGR % 1.2 a premium on hardware sales. Although Apple has a sterling brand, Price/Fair Value 0.95 robust product pipeline, and ample opportunity to gain share in its Valuation Summary and Forecasts The primary analyst covering this company various end markets, short product life cycles and intense does not own its stock. Fiscal Year: 2012 2013 2014(E) 2015(E) competition will prevent the firm from resting on its laurels or Price/Earnings 15.1 12.0 12.6 12.2 Research as of 10 Mar 2014 carving out a wide economic moat, in our opinion. EV/EBITDA 10.2 7.3 7.5 7.5 Estimates as of 31 Jan 2014 EV/EBIT 10.8 8.3 8.7 9.2 Pricing data through 01 Apr 2014 Rating updated as of 01 Apr 2014 We believe Apple has developed a narrow economic moat, thanks Free Cash Flow Yield % 6.8 10.6 9.3 8.9 Dividend Yield % 0.4 2.5 2.4 2.4 to switching costs related to a variety of attributes around the iOS Currency amounts expressed with "$" are in U.S.