Apple Inc | NASDAQ: AAPL

DIY Opinion

Pending 2019 Q3 earnings release on 7/30/2019

Company Overview

Below is an example Simplified Company Analysis and Company Valuation Model for Apple.

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Chart Sources: Annual 10-K's, Quarterly 10-Q's and Press Releases

The key takeaways from the below charts are as follows:

  1. The iPhone accounts for over half of Apple's total sales revenue
  2. The majority of Apple's sales are generated in the Americas segment
  3. The Americas segment is Apple's most profitable

If you choose to invest in Apple, pay close attention to Apple's iPhone sales in the Americas segment.

Valuation models can become quite lengthy and complex.  However, at the end of the day the value of a company boils down to two simple questions:

  1. Is the company making more money (growing sales revenue)?
  2. Is the company efficiently making more money (do they have a high operating margin)?

The model allows you to see how changing a few basic assumptions (green cells) impacts the valuation of the company.