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AppleCHIX:APCD 90 Degree of Operating Leverage is 1.33 as of Jun. 2026. GuruFocus rates CHIX:APCD with a GF Score™ of 90/100 and a GF Value™ of €271.72 (Modestly Overvalued). The stock has 4 warning signs investors should review. Among 2,437 Hardware companies, Apple ranks worse than 53.55% on this metric.
Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue.
Apple's Degree of Operating Leverage for the quarter that ended in Jun. 2026 was 1.33. The higher Degree of Operating Leverage, the higher operating risk the company will take.
The industry rank for Apple's Degree of Operating Leverage or its related term are showing as below:
CHIX:APCd's Degree of Operating Leverage is ranked worse than 53.55% of 2437
companies
in the Hardware industry
Industry Median: 1.04
vs CHIX:APCd: 1.33
Apple (CHIX:APCd) Degree of Operating Leverage Explanation
Degree of Operating Leverage (DOL) is a leverage ratio that measures the sensitivity of a company’s operting income, also referred to as Earnings Before Interest and Taxes (EBIT), to fluctuations in its Revenue. DOL is a method used to quantify a company’s operating risk. This risk is related to the company's structure of variable costs and fixed costs. Since the fixed costs do not allow the company to adjust the operating costs, the operating risk rises with a higher fixed-to-variable costs proportion.
A high Degree of Operating Leverage indicates that the company’s fixed costs exceed its variable costs. By increasing the sales, the company can earn more profits. In addition, the company must be able to maintain relatively high sales to cover all fixed costs.
Be Aware
The use of operating leverage varies across different industries and business sectors, and the application of Degree of Operating Leverage (DOL) should be adjusted accordingly.
Apple Degree of Operating Leverage Related Terms
Apple Degree of Operating Leverage Historical Data
* Premium members only.
The historical data trend for Apple's Degree of Operating Leverage 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.
CHIX:APCD vs SONO, TBCH, VUZI: Degree of Operating Leverage Comparison
For the Consumer Electronics subindustry, Apple's Degree of Operating Leverage, along with its competitors' market caps and Degree of Operating Leverage 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 Degree of Operating Leverage vs Hardware Industry
For the Hardware industry and Technology sector, Apple's Degree of Operating Leverage distribution charts can be found below:
* The bar in red indicates where Apple's Degree of Operating Leverage falls into.
* 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.
** TTM data of EBIT and Revenue was used to calculate Degree of Operating Leverage.
*** Please be aware that the Degree of Operating Leverage calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.
What does a Degree of Operating Leverage of 1.33 mean?
Apple (CHIX:APCD) has a Degree of Operating Leverage of 1.33 as of Jun. 2026. Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. View historical data for Apple and its competitors. According to the industry distribution chart, Apple ranks #1305 out of 2437 companies in the Hardware industry, placing it in the top 53.5%.
Is Apple's Degree of Operating Leverage too high?
Apple's current Degree of Operating Leverage is 1.33. The Hardware industry median Degree of Operating Leverage is 1.04. Apple's value of 1.33 is 27.9% above this industry median. Based on the distribution chart, Apple ranks #1305 out of 2437 companies in the Hardware industry, which is below the industry midpoint. Overall, Apple has a GF Score™ of 90/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Apple's Degree of Operating Leverage compare to SONO and TBCH?
According to the Hardware industry distribution chart, Apple ranks #1305 out of 2437 companies for Degree of Operating Leverage. This places Apple in the lower half of its industry. The industry median Degree of Operating Leverage is 1.04. Apple's value of 1.33 is 27.9% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Degree of Operating Leverage for a Hardware company?
The median Degree of Operating Leverage among Hardware companies is 1.04, based on 2,437 companies in the industry. Companies in the top quartile (top 25%) have a Degree of Operating Leverage significantly above this median, while those in the bottom quartile fall well below. However, Degree of Operating Leverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Apple's current Degree of Operating Leverage of 1.33 is 27.9% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Degree of Operating Leverage mean?
A high Degree of Operating Leverage can signal that a stock is expensive relative to its fundamentals. Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. View historical data for Apple and its competitors. For the Hardware industry, the median Degree of Operating Leverage is 1.04 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Apple's current Degree of Operating Leverage is 1.33. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Apple stock overvalued right now?
Based on GuruFocus' analysis, Apple (CHIX:APCD) is currently considered Modestly Overvalued. The stock's GF Value™ is €271.72, compared to a current price of €301.00 — trading 10.8% above its estimated fair value. The current Degree of Operating Leverage is 1.33 and 27.9% above the Hardware industry median of 1.04. Apple's overall GF Score™ is 90/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Degree of Operating Leverage calculated?
Degree of Operating Leverage is calculated from a company's financial statements. For Apple (CHIX:APCD), the current Degree of Operating Leverage is 1.33 as of Jun. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Apple (CHIX:APCD) Overvalued in 2026?
Based on GuruFocus' analysis, Apple stock appears to be overvalued.
The current stock price of €301.00 is trading 10.8% above its estimated GF Value™ of €271.72.
GuruFocus considers Apple to be Modestly Overvalued.
Key valuation signals for CHIX:APCD:
Degree of Operating Leverage: 1.33
GF Value™: €271.72 vs. price of €301.00 (10.8% above fair value)
Industry Position: 27.9% above the Hardware median (#1305 of 2437)
No single metric tells the full story. See the CHIX:APCD stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Apple is among the largest companies in the world, with a broad portfolio of hardware and software products targeted at consumers and businesses. Apple's iPhone accounts for the majority of the firm's sales, and Apple's other products, such as the Mac, iPad, and Watch, are designed around the iPhone as the focal point of an expansive software ecosystem. Apple has progressively worked to add new applications, such as streaming video, subscription bundles, and augmented reality. The firm designs its own software and semiconductors and works with subcontractors such as Foxconn and TSMC to build its products and chips. Slightly less than half of Apple's sales come directly through its flagship stores, with the majority coming indirectly through partnerships and distribution.
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