Fair Value Estimate for Apple

Apple’s long-term fair value estimate of $285 per share implies a fiscal 2026 price/earnings multiple of 32 times, a fiscal 2026 enterprise value/revenue multiple of 8 times, and a fiscal 2026 free cash flow yield of 3%. We project 9% compound annual revenue growth for Apple through fiscal 2030. The iPhone will be the most significant contributor to revenue over our forecast, and we project 10% growth in iPhone revenue over the next five years, including superb growth above 20% in fiscal 2026. We forecast gross margins to rise past 50% in fiscal 2030, up from 47% in fiscal 2025.

We believe Apple can see margin expansion from a higher mix of higher-margin hardware, like iPhone Pro models, and services. In the short term, we see modest margin pressure from rising memory prices, but expect Apple to continue to navigate these well and maintain healthy margins. We observe robust R&D growth in fiscal 2026, which we think is ramping up Apple’s internal investments in AI and AI-centric devices for the future.