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Apple Owner Earnings per Share (TTM)

: 5.26 (As of Jun. 2021)
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In 1986 Berkshire Hathaway Shareholder Letter, Warren Buffett defined owner earnings as follows:

"These represent (a) reported earnings plus (b) depreciation, depletion, amortization, and certain other non-cash charges...less (c) the average annual amount of capitalized expenditures for plant and equipment, etc. that the business requires to fully maintain its long-term competitive position and its unit volume (If the business requires additional working capital to maintain its competitive position and unit volume, the increment also should be included in (c))...Our owner-earnings equation does not yield the deceptively precise figures provided by GAAP, since (c) must be a guess - and one sometimes very difficult to make. Despite this problem, we consider the owner earnings figure, not the GAAP figure, to be the relevant item for valuation purposes - both for investors in buying stocks and for managers in buying entire businesses...All of this points up the absurdity of the 'cash flow' numbers that are often set forth in Wall Street reports. These numbers routinely include (a) plus (b) - but do not subtract (c)."

Apple's Owner Earnings per Share (TTM) ended in Jun. 2021 was USD5.26. It's Price-to-Owner-Earnings ratio for today is 27.93.


The historical rank and industry rank for Apple's Owner Earnings per Share (TTM) or its related term are showing as below:

NAS:AAPL' s Price-to-Owner-Earnings Range Over the Past 10 Years
Min: 7.53   Med: 12.48   Max: 33.82
Current: 27.95

7.53
33.82

During the past 13 years, the highest Price-to-Owner-Earnings ratio of Apple was 33.82. The lowest was 7.53. And the median was 12.48.


NAS:AAPL's Price-to-Owner-Earnings is ranked lower than
58% of the 1180 Companies
in the Hardware industry.

( Industry Median: 22.66 vs. NAS:AAPL: 27.95 )

Apple's Earnings per Share (Diluted) for the three months ended in Jun. 2021 was USD1.30. Its Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Jun. 2021 was USD5.11. It's PE Ratio ratio for today is 28.75.

Apple's EPS without NRI for the three months ended in Jun. 2021 was USD1.30. Its EPS without NRI for the trailing twelve months (TTM) ended in Jun. 2021 was USD5.11. It's PE Ratio without NRI ratio for today is 28.75.


Apple Owner Earnings per Share (TTM) Historical Data

The historical data trend for Apple's Owner Earnings per Share (TTM) can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Apple Annual Data
Trend Sep11 Sep12 Sep13 Sep14 Sep15 Sep16 Sep17 Sep18 Sep19 Sep20
Owner Earnings per Share (TTM)
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 2.45 2.42 3.21 2.98 3.76

Apple Quarterly Data
Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21
Owner Earnings per Share (TTM) Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 3.69 3.76 4.22 4.91 5.26

Competitive Comparison

For the Consumer Electronics subindustry, Apple's Owner Earnings per Share (TTM), along with its competitors' market caps and Owner Earnings per Share (TTM) data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

   

Apple Owner Earnings per Share (TTM) Distribution

For the Hardware industry and Technology sector, Apple's Owner Earnings per Share (TTM) distribution charts can be found below:

* The bar in red indicates where Apple's Owner Earnings per Share (TTM) falls into.



Apple Owner Earnings per Share (TTM) Calculation

In 1986 Berkshire Hathaway Shareholder Letter, Warren Buffett defined owner earnings as follows:

"These represent (a) reported earnings plus (b) depreciation, depletion, amortization, and certain other non-cash charges...less (c) the average annual amount of capitalized expenditures for plant and equipment, etc. that the business requires to fully maintain its long-term competitive position and its unit volume. (If the business requires additional working capital to maintain its competitive position and unit volume, the increment also should be included in (c))...Our owner-earnings equation does not yield the deceptively precise figures provided by GAAP, since (c) must be a guess - and one sometimes very difficult to make. Despite this problem, we consider the owner earnings figure, not the GAAP figure, to be the relevant item for valuation purposes - both for investors in buying stocks and for managers in buying entire businesses...All of this points up the absurdity of the 'cash flow' numbers that are often set forth in Wall Street reports. These numbers routinely include (a) plus (b) - but do not subtract (c)."

To make it simple, then you will have:

Owner Earnings per Share (TTM) = (Net Income + Depreciation, Depletion and Amortization + Change In Deferred Tax - 5Y Average of Maintenance Capital Expenditure + Change In Working Capital) / Shares Outstanding (Diluted Average)

Apple's Owner Earnings per Share (TTM) Calculation:

TTM / Last Quarter Average of Last 20 Quarters
Net Income 86,802
Depreciation, Depletion and Amortization 10,997
Change In Deferred Tax -1,134
5Y Average of Maintenance Capital Expenditure 9,195
Change In Working Capital 756
Shares Outstanding (Diluted Average) 16,782

1. Start with "Net Income" from income statement. Apple's Net Income for the trailing twelve months (TTM) ended in Jun. 2021 was USD86,802 Mil.

2. "Depreciation, Depletion and Amortization" is from cashflow statement. Apple's Depreciation, Depletion and Amortization for the trailing twelve months (TTM) ended in Jun. 2021 was USD10,997 Mil. This needs to be added back because company does not actually need to pay cash for it. It is a non-cash item.

3. Other non-cash charges usually include "Stock Based Compensation" and "Change In Deferred Tax":
However, to be conservative, GuruFocus will not add Stock Based Compensation back to net income. Apple's Change In Deferred Tax for the trailing twelve months (TTM) ended in Jun. 2021 was USD-1,134 Mil.

4. Average maintenance capital expenditure over a business/industry cycle: 5-Year Average Maintenance Capital Expenditure = USD9,195 Mil

It is usually best to take a long-term average of maintenance capital expenditure. Ideally this would be as long as 10 years and include at least one economic downturn. However, since many companies do not have as long as 10-year history, here GuruFocus uses the latest 5 years data to do the calculation. To smooth out unusual years but reflect recent developments, we take an average of the 5 year maintenance capital expenditure.

The following shows how to get maintenance capital expenditure.

First, calculate the revenue change regarding to the previous year. If the revenue decreased from the previous year, then the Maintenance Capital Expenditure = Capital Expenditure (positive).
Second, if the revenue increased from the previous year, then calculate the percentage of Net PPE as of corresponding Revenue.
Growth Capital Expenditure = Percentage of Property, Plant and Equipment as of corresponding Revenue * Revenue Increase
Third, calculate Capital Expenditure (positive) - Growth Capital Expenditure.
If [Capital Expenditure (positive) - Growth Capital Expenditure] was negative, then the Maintenance Capital Expenditure = Capital Expenditure (positive).
If [Capital Expenditure (positive) - Growth Capital Expenditure] was positive, then the Maintenance Capital Expenditure = Capital Expenditure (positive) - Growth Capital Expenditure.
Fourth, get the average of the 5 years maintenance capital expenditure.

Apple's 5-Year Average Maintenance Capital Expenditure = USD9,195 Mil

5. "Change In Working Capital" is from cashflow statement. Apple's Change In Working Capital for the trailing twelve months (TTM) ended in Jun. 2021 was USD756 Mil.
Note: GuruFocus' Change in Working Capital is provided by Morningstar. It is calculated by adding the items under "Change in operating assets and liabilities" (may refer to a different name for different company) section in Cash Flow Statement from original financial report. And sometimes it includes non-current parts of assets and liabilities.

6. Apple's Shares Outstanding (Diluted Average) for the months ended in Jun. 2021 was 16781.735 Mil.

Apple's Onwer Earnings Per Share for Jun. 2021 is calculated as:

Owner Earnings per Share (TTM)
=( Net Income+Depreciation, Depletion and Amortization+Change In Deferred Tax
=( 86802 +10997+-1134
-5Y Avg of Maintenance CAPEX+Change In Working Capital )/Shares Outstanding (Diluted Average)
-9195.061225596+756)/16781.735
=5.26

Price-to-Owner-Earnings=Current Price/Owner Earnings per Share (TTM)
=146.92/5.26
=27.93

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Be Aware

Assumption: Companies usually do not report maintenance capital expenditures and growth capital expenditures separately. Here we use estimated numbers and average them over 5 years. The method to estimate maintenance capital expenditures can be found in above part 4.

Note: GuruFocus' Change In Working Capital is provided by Morningstar. It is calculated by adding the items under "Change in operating assets and liabilities" (may refer to a different name for different company) section in Cash Flow Statement from original financial report. And it includes non-current parts of assets and liabilities.


Apple Owner Earnings per Share (TTM) Related Terms

Thank you for viewing the detailed overview of Apple's Owner Earnings per Share (TTM) provided by GuruFocus.com. Please click on the following links to see related term pages.


Apple Business Description

Apple logo
Industry
Technology » Hardware NAICS : 334220 SIC : 3571
Address
One Apple Park Way, Cupertino, CA, USA, 95014
Apple designs a wide variety of consumer electronic devices, including smartphones (iPhone), tablets (iPad), PCs (Mac), smartwatches (Apple Watch), AirPods, and TV boxes (Apple TV), among others. The iPhone makes up the majority of Apple's total revenue. In addition, Apple offers its customers a variety of services such as Apple Music, iCloud, Apple Care, Apple TV+, Apple Arcade, Apple Card, and Apple Pay, among others. Apple's products run internally developed software and semiconductors, and the firm is well known for its integration of hardware, software and services. Apple's products are distributed online as well as through company-owned stores and third-party retailers. The company generates roughly 40% of its revenue from the Americas, with the remainder earned internationally.
Executives
Kondo Chris officer: Principal Accounting Officer 1 INFINITE LOOP CUPERTINO CA 95014
Maestri Luca officer: Senior Vice President, CFO 1 INFINITE LOOP CUPERTINO CA 95014
Adams Katherine L. officer: SVP, GC and Secretary APPLE INC. 1 INFINITE LOOP CUPERTINO CA 95014
Williams Jeffrey E officer: COO ONE INFINITE LOOP CUPERTINO CA 95014
Cook Timothy D director, officer: Chief Executive Officer C/O APPLE INC ONE INFINITE LOOP CUPERTINO CA 95014
Jung Andrea director C/O APPLE INC ONE APPLE PARK WAY CUPERTINO CA 95014
Wagner Susan director C/O BLACKROCK, INC. 40 EAST 52ND STREET NEW YORK NY 10022
Bell James A director C/O THE DOW CHEMICAL COMPANY 2211 H.H. DOW WAY MIDLAND MI 48674
Levinson Arthur D director C/O GENENTECH INC 1 DNA WAY MS 49 SOUTH SAN FRANCISCO CA 94080-4990
Sugar Ronald D director 10877 WILSHIRE BLVD. SUITE 1650 LOS ANGELES CA 900274
Gore Albert Jr director C/O APPLE INC 1 INFINITE LOOP CUPERTINO CA 95014
Iger Robert A director C/O WALT DISNEY CO 500 S BUENA VISTA STREET BURBANK CA 91521-1062
Ahrendts Angela J officer: Senior Vice President 1 INFINITE LOOP CUPERTINO CA 95014
Srouji Johny officer: Senior Vice President 1 INFINITE LOOP CUPERTINO CA 95014
Federighi Craig officer: Senior Vice President 807 11TH AVENUE SUNNYVALE CA 94089

Apple Headlines

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