EC SD | broketenant - 6/3/2026 08:12
So Apple current market capitalization is $4.63 Trillion dollars, 2025 Free Cash Flow was $99 Billion dollars. That is a 47x Free Cash Flow multiple. Also known as a 2.12% equity yield.. That is just incredible to me. Who is buying here?
This is a good way to look at mature companies with single-digit annual earnings growth rates, but I prefer to calculate Free Cash Flow Yield using Enterprise Value instead of market cap. "Enterprise value (EV) is a measure of a company's total value, including its equity and debt, and is used to assess the cost of acquiring the entire business. It is calculated by adding the market capitalization, total debt, and preferred stock, then subtracting cash and cash equivalents."
Free Cash Flow Yield = Free Cash Flow / EV For AAPL this is 2.28%, which is fairly low if considering them a low-growth mature company.
AAPL is growing much faster than that though, with 21.8% earnings growth over the last year. For a company growing earnings by double digits, I prefer Forward PEG = Forward PE / Growth. For AAPL that is 1.44, which is not a bargain (below 1) nor expensive (above 2). Buy it if you think they will continue growing by double digits annually, sell if you think they will not.
Edited by FW30 6/3/2026 11:23
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Apple
