Apple Inc. (AAPL) Two-Stage Dividend Discount Model - Discounting Cash Flows
AAPL
Apple Inc.
AAPL (NASDAQ)

Estimated Value

USD

Market Price USD

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Two-Stage Dividend Discount Model

Used to estimate the value of companies based on two stages of growth. An initial period of high growth, calculated using [Sum of Discounted Dividends], followed by a period of stable growth, calculated using [Discounted Terminal Value].

Read more: GitHub Documentation

Interactive Assumptions

Discount Rate

Discount Rate

Discount Rate = Cost of Equity = Risk Free Rate + Beta * Market Premium

The cost of equity is the theoretical rate of return that an equity investment should generate. It is calculated using the CAPM formula.

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↳ Beta

Beta

Beta is a value that measures the price fluctuations (volatility) of a stock with respect to fluctuations in the overall stock market.

↳ Risk Free Rate

Risk-Free Rate

The risk-free rate represents the interest an investor would expect from an absolutely risk-free investment over a specified period of time. By default, it is equal to the current yield of the U.S. 10 Year Treasury Bond.

↳ Market Premium

Market Premium

Market risk premium represents the excess returns over the risk-free rate that investors expect for taking on the incremental risks connected to the equities market.

High Growth Years

High Growth Years

The estimated number of years during which the company is expected to experience high growth. After this period, the company will transition to a stable growth phase.

Historical Years

Historical Years

The number of historical years used to calculate averages for historical data.

High Growth Rate

High Growth Rate

The estimated growth rate of Earnings Per Share (EPS) during the high-growth phase.

High Growth Payout

High Growth Payout

The estimated dividend payout rate expressed as a percentage of Earnings Per Share (EPS) during the high-growth phase.

Stable Growth In Perpetuity

Stable Growth in Perpetuity

The estimated stable rate at which the company's Earnings Per Share (EPS) will grow in perpetuity after the last projected period.

Stable Payout

Stable Payout

The estimated dividend payout rate expressed as a percentage of Earnings Per Share (EPS) after the last projected period.

Results

Sum of discounted dividends 6.31 USD
Discounted terminal value 105.9 USD
Terminal value 167.4 USD
Dividend in stable phase 8.78 USD
EPS in stable phase 9.76 USD
Average historical Dividend Growth Rate 7.44%
Average historical Payout Ratio 20.52%
Average historical Return on Equity 99.95%

Historical and Projected Dividends

Monetary values are in USD

Edit Chart Values 2025 2026 2027 2028 2029

amounts of USD except for #

2024 LTM 2025 2026 2027 2028 2029
Earnings Per Share 6.11 6.43 7.01 7.54 8.1 8.7 9.35
Dividend per Share 0.99 1.01 1.44 1.55 1.66 1.79 1.92
Dividend Growth Rate 4.21% 2.02% 45.39% 7.44% 7.44% 7.44% 7.44%
Discounted Dividend 0.99 1.01 1.31 1.29 1.26 1.24 1.21

amounts of USD except for #

Average LTM 2024 2023 2022 2021 2020 2019 2018 2017 2016 2015
Net Income 72,922 97,294 93,736 96,995 99,803 94,680 57,411 55,256 59,531 48,351 45,687 53,394
Equity 85,844 66,796 56,950 62,146 50,672 63,090 65,339 90,488 107,147 134,047 128,249 119,355
Return on Equity 99.94% 170.8% 150.8% 191.4% 158.2% 144.9% 63.45% 51.57% 44.41% 37.7% 38.28% 47.87%
Common Dividends 13,929 15,144 15,190 14,957 14,757 14,447 14,003 14,038 13,974 12,834 12,189 11,691
Payout Ratio 20.52% 15.71% 16.2% 15.42% 14.8% 15.26% 24.38% 25.42% 23.5% 26.51% 26.65% 21.9%
Shares Outstanding 18,219 14,994 15,344 15,744 16,216 16,701 17,352 18,471 19,822 20,869 21,883 23,014
Reference Market Price 118.8 213.6 250.4 192.5 129.9 177.6 132.7 73.41 39.44 42.31 28.96 26.32
EPS 4.23 6.43 6.11 6.16 6.15 5.67 3.31 2.99 3 2.32 2.09 2.32
Dividend per Share 0.789 1.01 0.99 0.95 0.91 0.865 0.807 0.76 0.705 0.615 0.557 0.508
Dividend Growth Rate 7.44% 2.02% 4.21% 4.4% 5.2% 7.19% 6.18% 7.8% 14.63% 10.41% 9.65% 10.2%
Dividend Yield 1.03% 0.473% 0.395% 0.494% 0.701% 0.487% 0.608% 1.03% 1.79% 1.45% 1.92% 1.93%
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Discounting Cash Flows

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