Apple Inc. (AAPL) — Fundamental Analysis & Key Financial Ratios

Kaplio's reading: Apple Inc.

Updated on October 20, 2026 · accounts published on July 30, 2026

A highly profitable business with record margins and slow sales growth

Apple trades at a P/E of 39.4 over the last 12 months, higher than 88 % of the past decade, while its 52 % ROIC far exceeds the sector median.

• Is Apple expensive or cheap? Apple's P/E of 39.4 is 38 % above its ten-year median and 23 % above its sector; it traded lower 88 % of the last decade.
• How is the business doing? Apple's operating margin of 32 % in fiscal 2025 was its highest in 12 years, above the 2014-2025 average of 29 %.
• How strong is the balance sheet? Apple's net debt was $3.86 per share in fiscal 2025, just 1.1 % of the share price and 0.5× EBITDA.
• What to expect from the next earnings? Apple reports on November 2, 2026; analysts expect EPS of $1.99, and it has beaten estimates in each of the last 8 quarters.
• Is Apple growing with real cash or by diluting shareholders? Apple's free cash flow was 24 % of revenue in fiscal 2025, while stock-based pay was just 3.1 % of revenue.

Is Apple expensive or cheap?

Over the last 12 months Apple trades at a P/E of 39.4, against a ten-year median of 28.7 and a decade range of 11.7 to 48.9. It traded at a lower P/E 88 % of the time over the last decade, so the stock sits near the top of its own history. The sector median is 32.0, leaving Apple 23 % above its peers. EV/EBITDA of 30.0× compares with a five-year average of 23.0×, past the 110 % line that tech uses to flag expensive. The shares rose 29 % in 12 months, faster than EPS, and sit within 1 % of the 52-week high of $348.22.

How is the business doing?

Revenue grew 6.4 % over the last 12 months while EPS rose 23 %, so profit is expanding much faster than sales. The operating margin stands at 33 % over the last 12 months, and fiscal 2025's 32 % was the highest of the 12 years since 2014, against an average of 29 %. ROIC of 52 % compares with a sector median of 8 %, a gap of 44 points, and ROIC has stayed above 10 % in each of the last 10 fiscal years. This is a business that turns a modest top line into exceptional returns on capital.

How strong is the balance sheet?

Net debt in fiscal 2025 was $3.86 per share ($7.52 of debt minus $3.66 of cash), equal to 1.1 % of today's price and 0.5× EBITDA, well inside the 2.0× considered tolerable for hardware. Debt to equity is 0.78 and the current ratio 1.00 over the last 12 months, tight on liquidity but backed by an Altman Z of 10.3, deep in the safe zone, and a Piotroski score of 8 of 9. The dividend yields only 0.3 %, but it has risen for 11 consecutive fiscal years and the payout was 14 % of earnings in fiscal 2025, leaving ample room.

What to expect from the next earnings?

Apple publishes its next results on November 2, 2026, with analysts expecting EPS of $1.99 for the quarter. In the last report, on July 30, 2026, EPS came in at $2.02 against $1.89 expected, a 6.9 % beat, and the company has topped EPS estimates in 8 of the last 8 quarters. Expectations are stable: the 2027 EPS consensus held at $9.60 over the last 30 days across 30 analysts, and revenue estimates barely moved. Of 112 analysts, 70 rate the stock a buy, 32 a hold and 9 a sell. With the P/E near its decade high, a beat may already be expected.

Is Apple growing with real cash or by diluting shareholders?

In tech, generic ratios miss what matters: growth, pricing power and dilution from stock-based pay, which can flatter earnings while shrinking each shareholder's slice. Apple passes most tests. Gross margin of 47 % in fiscal 2025 clears the 35 % healthy line for hardware, a sign of pricing power. Free cash flow was 24 % of revenue, above the 20 % bar, and stock-based compensation was 3.1 % of revenue, far below the 10 % healthy limit. The weak point is growth: revenue per share rose 4.6 % a year over fiscal 2022-2025, well short of the 15 % the sector treats as healthy.

How this was prepared: the data comes from companies' official filings, collected by a professional provider, and from Kaplio's analysis engine (trailing-12-month ratios, 10 years of history and sector medians computed across US-listed companies). The text is written from that data alone, every figure is checked against it before publication, and it is reviewed when the company reports results. This is not investment advice.