GURUFOCUS.COM » STOCK LIST » USA » NAS » Apple Inc (NAS:AAPL) » Definitions » PE Ratio
Switch to:

Apple (NAS:AAPL) PE Ratio

: 28.43 (As of Today)
View and export this data going back to 1980. Start your Free Trial

The PE Ratio, or Price-to-Earnings ratio, or P/E Ratio, is a financial ratio used to compare a company's market price to its Earnings per Share (Diluted). As of today (2024-02-24), Apple's share price is $182.52. Apple's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Dec. 2023 was $6.42. Therefore, Apple's PE Ratio for today is 28.43.

During the past 13 years, Apple's highest PE Ratio was 40.36. The lowest was 9.32. And the median was 17.76.

Apple's EPS (Diluted) for the three months ended in Dec. 2023 was $2.18. Its EPS (Diluted) for the trailing twelve months (TTM) ended in Dec. 2023 was $6.42.

As of today (2024-02-24), Apple's share price is $182.52. Apple's EPS without NRI for the trailing twelve months (TTM) ended in Dec. 2023 was $6.42. Therefore, Apple's PE Ratio without NRI ratio for today is 28.43.

During the past 13 years, Apple's highest PE Ratio without NRI was 40.36. The lowest was 9.32. And the median was 17.76.

Apple's EPS without NRI for the three months ended in Dec. 2023 was $2.18. Its EPS without NRI for the trailing twelve months (TTM) ended in Dec. 2023 was $6.42.

During the past 12 months, Apple's average EPS without NRI Growth Rate was 9.00% per year. During the past 3 years, the average EPS without NRI Growth Rate was 23.20% per year. During the past 5 years, the average EPS without NRI Growth Rate was 19.80% per year. During the past 10 years, the average EPS without NRI Growth Rate was 16.20% per year.

During the past 13 years, Apple's highest 3-Year average EPS without NRI Growth Rate was 172.60% per year. The lowest was -48.30% per year. And the median was 23.20% per year.

Apple's EPS (Basic) for the three months ended in Dec. 2023 was $2.19. Its EPS (Basic) for the trailing twelve months (TTM) ended in Dec. 2023 was $6.46.

Back to Basics: PE Ratio


Apple PE Ratio Historical Data

The historical data trend for Apple's PE Ratio 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 Sep14 Sep15 Sep16 Sep17 Sep18 Sep19 Sep20 Sep21 Sep22 Sep23
PE Ratio
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 18.85 35.31 25.22 22.62 27.93

Apple Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
PE Ratio 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 22.06 28.00 32.60 27.93 29.99

Competitive Comparison

For the Consumer Electronics subindustry, Apple's PE Ratio, along with its competitors' market caps and PE Ratio 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 PE Ratio Distribution

For the Hardware industry and Technology sector, Apple's PE Ratio distribution charts can be found below:

* The bar in red indicates where Apple's PE Ratio falls into.



Apple PE Ratio Calculation

The PE Ratio, or Price-to-Earnings ratio, or P/E Ratio, is a financial ratio used to compare a company's market price to its Earnings per Share (Diluted). It is the most widely used ratio in the valuation of stocks.

Apple's PE Ratio for today is calculated as

PE Ratio=Share Price/Earnings per Share (Diluted) (TTM)
=182.52/6.420
=28.43

Apple's Share Price of today is $182.52.
Apple's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Dec. 2023 adds up the quarterly data reported by the company within the most recent 12 months, which was $6.42.


* 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.

It can also be calculated from the numbers for the whole company:


There are at least three kinds of PE Ratios used by different investors. They are Trailing Twelve Month PE Ratio, Forward PE Ratio, or PE Ratio without NRI. A new PE Ratio based on inflation-adjusted normalized PE Ratio is called Shiller PE Ratio, after Yale professor Robert Shiller.

In the calculation of PE Ratio, the earnings per share used are the earnings per share over the past 12 months. For Forward PE Ratio, the earnings are the expected earnings for the next twelve months. In the case of PE Ratio without NRI, the reported earnings less the non-recurring items are used.

For Shiller PE Ratio, the earnings of the past 10 years are inflation-adjusted and averaged. Since it looks at the average over the last 10 years, Shiller PE Ratio is also called PE10.


Apple  (NAS:AAPL) PE Ratio Explanation

The PE Ratio can be viewed as the number of years it takes for the company to earn back the price you pay for the stock. For example, if a company earns $2 a share per year, and the stock is traded at $30, the PE Ratio is 15. Therefore it takes 15 years for the company to earn back the $30 you paid for its stock, assuming the earnings stays constant over the next 15 years.

In real business, earnings never stay constant. If a company can grow its earnings, it takes fewer years for the company to earn back the price you pay for the stock. If a company's earnings decline it takes more years. As a shareholder, you want the company to earn back the price you pay as soon as possible. Therefore, lower P/E stocks are more attractive than higher P/E stocks so long as the PE Ratio is positive. Also for stocks with the same PE Ratio, the one with faster growth business is more attractive.

If a company loses money, the PE Ratio becomes meaningless.

To compare stocks with different growth rates, Peter Lynch invented a ratio called PEG Ratio. PEG Ratio is defined as the PE Ratio divided by the growth ratio. He thinks a company with a PE Ratio equal to its growth rate is fairly valued. Still he said he would rather buy a company growing 20% a year with a PE Ratio of 20, instead of a company growing 10% a year with a PE Ratio of 10.

Because the PE Ratio measures how long it takes to earn back the price you pay, the PE Ratio can be applied to the stocks across different industries. That is why it is the one of the most important and widely used indicators for the valuation of stocks.

Similar to the PE Ratio without NRI or PS Ratio or Price-to-Operating-Cash-Flow or Price-to-Free-Cash-Flow , the PE Ratio measures the valuation based on the earning power of the company. This is where it is different from the PB Ratio , which measures the valuation based on the company's balance sheet.


Be Aware

Investors need to be aware that the PE Ratio can be misleading a lot of times, especially when the underlying business is cyclical and unpredictable. As Peter Lynch pointed out, cyclical businesses have higher profit margins at the peaks of the business cycles. Their earnings are high and PE Ratios are artificially low. It is usually a bad idea to buy a cyclical business when the PE Ratio is low. A better ratio to identify the time to buy a cyclical businesses is the PS Ratio.

PE Ratio can also be affected by non-recurring-items such as the sale of part of businesses. This may increase for the current year or quarter dramatically. But it cannot be repeated over and over. Therefore PE Ratio without NRI is a more accurate indication of valuation than PE Ratio.


Apple PE Ratio Related Terms

Thank you for viewing the detailed overview of Apple's PE Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.


Apple (NAS:AAPL) Business Description

Address
One Apple Park Way, Cupertino, CA, USA, 95014
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 makes up a majority of the firm sales, and Apple's other products like 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, like streaming video, subscription bundles, and augmented reality. The firm designs its own software and semiconductors while working with subcontractors like Foxconn and TSMC to build its products and chips. Slightly less than half of Apple's sales come directly through its flagship stores, with a majority of sales coming indirectly through partnerships and distribution.
Executives
Chris Kondo officer: Principal Accounting Officer 1 INFINITE LOOP, CUPERTINO CA 95014
Katherine L. Adams officer: SVP, General Counsel APPLE INC., 1 INFINITE LOOP, CUPERTINO CA 95014
Luca Maestri officer: Senior Vice President, CFO 1 INFINITE LOOP, CUPERTINO CA 95014
Jeffrey E Williams officer: COO ONE INFINITE LOOP, CUPERTINO CA 95014
Deirdre O'brien officer: Senior Vice President ONE APPLE PARK WAY, CUPERTINO CA 95014
Timothy D Cook director, officer: Chief Executive Officer C/O APPLE INC, ONE INFINITE LOOP, CUPERTINO CA 95014
Arthur D Levinson director C/O GENENTECH INC, 1 DNA WAY MS 49, SOUTH SAN FRANCISCO CA 94080-4990
Alex Gorsky director JOHNSON & JOHNSON, ONE JOHNSON & JOHNSON PLAZA, NEW BRUNSWICK NJ 08933
Monica C Lozano director
Angela J Ahrendts officer: Senior Vice President 1 INFINITE LOOP, CUPERTINO CA 95014
Johny Srouji officer: Senior Vice President 1 INFINITE LOOP, CUPERTINO CA 95014
Craig Federighi officer: Senior Vice President 807 11TH AVENUE, SUNNYVALE CA 94089
Daniel J. Riccio officer: Senior Vice President 1 INFINITE LOOP, CUPERTINO CA 95014
Philip W Schiller officer: Senior Vice President C/O APPLE INC, ONE INFINITE LOOP, CUPERTINO CA 95014
Susan Wagner director C/O BLACKROCK, INC., 40 EAST 52ND STREET, NEW YORK NY 10022