DCF calculator
Apple Inc.: How much growth is priced in?
A share price is a bet on the future. This calculator shows how much growth today's price assumes and what the stock would be worth if you assume a different growth rate.
How fast do you think Apple Inc. will grow over the next ten years?
This means free cash flow per share: the money left over after all expenses and investments.
The slider sits at the growth today's price expects. Move it to where you see Apple Inc.
Then the stock would be worth about $353.58.
the same as today's price of $354.88For comparison: MEQIRI's fair value is $216.59. It uses its own model, more on that under “Calculate in more detail”.
For comparison
Today's price expects about as much growth as Apple Inc. has recently achieved.
Calculate in more detail
For anyone familiar with a DCF: discount rate, growth after year 10, a second growth phase and how sensitive the result is to them.
The minimum return you want. The higher it is, the less money that only arrives in the future counts today.
Follows your assumption above until you move it yourself.
Free cash flow is the average of the last two fiscal years. If that sits more than 35% below the median of the five years before, for example after a one-off payment, the calculator uses that median. MEQIRI's fair value is calculated differently: with analyst estimates, the company's own cost of capital and the government bond yield as perpetual growth, blended half and half with earnings times the industry P/E. That is why it arrives at a different value than this calculator.
67% of the value comes from after year 10. The higher that share, the more the result depends on the perpetual-growth assumption.
How sensitive the result is
Value per share at a different required return (rows) and different growth (columns). Green is above today's price, red below.
| Return | Growth | ||||
|---|---|---|---|---|---|
| 12.2% | 14.2% | 16.2% | 18.2% | 20.2% | |
| 8% | $316.33 | $369.46 | $431.08 | $502.39 | $584.78 |
| 9% | $261.28 | $304.06 | $353.58 | $410.81 | $476.84 |
| 10% | $221.25 | $256.57 | $297.39 | $344.49 | $398.74 |
This is a calculator with your assumptions, not a price target and not a recommendation. Small changes move the result a lot.