DISCOUNTED CASH FLOW ANALYSIS

#ADDIN?
(USD in millions)

ASSUMPTIONS BETA CALCULATION

Mkt. Val. Unlevered
Tax Rate (5 Year Average) NA Ticker Name 5Yr Avg Tax Rate Levered Beta Total Debt Equity Pref Equity Debt/ Equity Pref/ Equity Beta(2)
Risk-Free Rate of Return (Rf)(1) #ADDIN? #ADDIN? #ADDIN? NA #ADDIN? #ADDIN? #ADDIN? #ADDIN? NA NA NA
#ADDIN? #ADDIN? #ADDIN? #ADDIN? NA #ADDIN? #ADDIN? #ADDIN? #ADDIN? NA NA NA
Size Premium 0.0% #ADDIN? #ADDIN? NA #ADDIN? #ADDIN? #ADDIN? #ADDIN? NA NA NA
AAPL D/(D+P+E) #ADDIN? #ADDIN? #ADDIN? NA #ADDIN? #ADDIN? #ADDIN? #ADDIN? NA NA NA
AAPL D/E #ADDIN? #ADDIN? #ADDIN? NA #ADDIN? #ADDIN? #ADDIN? #ADDIN? NA NA NA
AAPL P/E #ADDIN? NasdaqGS:AA#ADDIN? NA #ADDIN? #ADDIN? #ADDIN? #ADDIN? NA NA NA
Choice for Cost of Debt Company
AAPL Cost of Debt (Rd) - Average of Last 5 Issued Bonds 0.0% Average #ADDIN? #DIV/0!
Comparable Corporate Yield Curve Rate #ADDIN?
AAPL Cost of Preferred (Rp) 0.0% Average Unlevered Beta for Comps #DIV/0!
AAPL D/E #ADDIN?
Risk Free Rate AAPL P/E #ADDIN?
Choose United States Tax Rate (5 Year Average) NA
Then AAPL Levered Beta (3) #VALUE!

Corporate Yield Curves

Currency Sector Rating Tenor WACC SENSITIVITY ANALYSIS

USD Industrials AA 5Y D/(D+P+E) Pre-Tax Cost of Debt

WACC #ADDIN? 5.00% 5.50% 6.00% 6.50% 7.00% 7.50% 8.00% 8.50% 9.00%
35.0% #ADDIN? #ADDIN? #ADDIN? #ADDIN? #ADDIN? #ADDIN? #ADDIN? #ADDIN? #ADDIN?
Market Risk Premium (Rm - Rf) #ADDIN? 40.0% #ADDIN? #ADDIN? #ADDIN? #ADDIN? #ADDIN? #ADDIN? #ADDIN? #ADDIN? #ADDIN?
Multiplied by: AAPL Bottom-Up Beta #VALUE! 45.0% #ADDIN? #ADDIN? #ADDIN? #ADDIN? #ADDIN? #ADDIN? #ADDIN? #ADDIN? #ADDIN?
Adjusted Market Risk Premium #ADDIN? 50.0% #ADDIN? #ADDIN? #ADDIN? #ADDIN? #ADDIN? #ADDIN? #ADDIN? #ADDIN? #ADDIN?
Add: Risk-Free Rate of Return (Rf)(1) #ADDIN? 55.0% #ADDIN? #ADDIN? #ADDIN? #ADDIN? #ADDIN? #ADDIN? #ADDIN? #ADDIN? #ADDIN?
Add: Size Premium 0.0% 60.0% #ADDIN? #ADDIN? #ADDIN? #ADDIN? #ADDIN? #ADDIN? #ADDIN? #ADDIN? #ADDIN?
Cost of Equity #ADDIN? 65.0% #ADDIN? #ADDIN? #ADDIN? #ADDIN? #ADDIN? #ADDIN? #ADDIN? #ADDIN? #ADDIN?
Multiplied by: AAPL E/(D+P+E) #ADDIN?
Cost of Equity Portion #ADDIN?
WACC SENSITIVITY ANALYSIS
AAPL Cost of Debt (Rd) - Average of Last 5 Issued Bonds 0.0%
Tax Rate (5 Year Average) NA E/(D+P+E) Cost of Equity
After-Tax Cost of Debt #VALUE! #ADDIN? 2.00% 2.75% 3.50% 4.25% 5.00% 5.75% 6.50% 7.25% 8.00%
Multiplied by: AAPL D/(D+P+E) #ADDIN? 35.0% #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE!
Cost of Debt Portion #VALUE! 40.0% #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE!
45.0% #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE!
AAPL Cost of Preferred (Rp) 0.0% 50.0% #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE!
Multiplied by: AAPL P/(D+P+E) #ADDIN? 55.0% #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE!
Cost of Preferred Portion #ADDIN? 60.0% #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE!
65.0% #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE!
WACC #ADDIN?

(1) Interest on United States Treasury Constant Maturity - 1 Month

(2) Unlevered Beta = Levered Beta / ( 1 + ((D/E) * (1 - T)) + P/E)
(3) Levered Beta = Unlevered Beta * ( 1 + ((D/E) * (1 - T)) + P/E)
Source: S&P Capital IQ

Copyright © 2019 S&P Global Market Intelligence LLC (and its affiliates as applicable) – All rights reserved.  This model and/or any data in it are provided subject to the written agreement of S&P Global Market Intelligence LLC governing the subscription service to which this model is applied.
PROJECTED CASH FLOWS
(USD in millions, except per share data) 996 997 998 999 1000

#ADDIN? CAGR
#ADDIN? #ADDIN? #ADDIN? #ADDIN? #ADDIN? #ADDIN? #ADDIN? #ADDIN? #ADDIN? #ADDIN? #ADDIN?
Total Revenue #ADDIN? #ADDIN? #ADDIN? #ADDIN? #ADDIN? #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!
Annual Growth NA NA NA NA #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!
Cost of Revenue #ADDIN? #ADDIN? #ADDIN? #ADDIN? #ADDIN? #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!
Margin NA NA NA NA NA NA NA NA NA NA
EBITDA #ADDIN? #ADDIN? #ADDIN? #ADDIN? #ADDIN? #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE!
Annual Growth NA NA NA NA #VALUE! #VALUE! #VALUE! #VALUE! #VALUE!
Margin NA NA NA NA NA NA NA NA NA NA
Less: Depreciation and Amortization #ADDIN? #ADDIN? #ADDIN? #ADDIN? #ADDIN? #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE!
% of Capital Expenditure NA NA NA NA NA #VALUE! #VALUE! #VALUE! #VALUE! #VALUE!
EBIT #ADDIN? #ADDIN? #ADDIN? #ADDIN? #ADDIN? #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE!
Annual Growth NA NA NA NA #VALUE! #VALUE! #VALUE! #VALUE! #VALUE!
Margin NA NA NA NA NA #VALUE! #VALUE! #VALUE! #VALUE! #VALUE!
Less: Income Taxes NA #ADDIN? #ADDIN? #ADDIN? #ADDIN? #ADDIN? #VALUE! #VALUE! #VALUE! #VALUE! #VALUE!
Unlevered Net Income #ADDIN? #ADDIN? #ADDIN? #ADDIN? #ADDIN? #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE!
Plus: Depreciation and Amortization #ADDIN? #ADDIN? #ADDIN? #ADDIN? #ADDIN? #VALUE! #VALUE! #VALUE! #VALUE! #VALUE!
Less: Capital Expenditure #ADDIN? #ADDIN? #ADDIN? #ADDIN? #ADDIN? #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!
Margin NA NA NA NA NA #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!
Less: Additions to Intangibles #ADDIN? #ADDIN? #ADDIN? #ADDIN? #ADDIN? #ADDIN? #ADDIN? #ADDIN? #ADDIN? #ADDIN?
Less: Increase in Working Capital #ADDIN? #ADDIN? #ADDIN? #ADDIN? #ADDIN? #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!
Margin NA NA NA NA NA #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!
Unlevered Free Cash Flow #ADDIN? #ADDIN? #ADDIN? #ADDIN? #ADDIN? #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE!
Annual Growth NA NA NA NA #VALUE! #VALUE! #VALUE! #VALUE! #VALUE!

Discount Factor - End-of-Period Convention #ADDIN? #ADDIN? #ADDIN? #ADDIN? #ADDIN?

PV of Yearly Cash Flows #VALUE! #ADDIN? #ADDIN? #ADDIN? #ADDIN?
#ADDIN?

#VALUE! DCF Assumptions

% of TEV % of MVE
#ADDIN? #VALUE! #VALUE! #VALUE! Weighted Average Cost of Capital #ADDIN?
#ADDIN? #ADDIN? #ADDIN? #ADDIN?
PV of Terminal Value(1) #VALUE! #VALUE! #VALUE! Terminal EBITDA Multiple #ADDIN?
Enterprise Value #VALUE! #VALUE! #VALUE!
Less: Implied Perp. Growth Rate of Unlevered Free Cash Flow(2) #VALUE!
Total Debt #ADDIN? #ADDIN?
Preferred Stock #ADDIN? #ADDIN? Tax Rate NA
Minority Interest #ADDIN? #ADDIN?
Plus:
Cash and Equivalents #ADDIN? #ADDIN?
Equity Value #ADDIN? #ADDIN?

Shares Outstanding #ADDIN?

Implied Per Share Value #ADDIN?
Current Price #ADDIN?
Premium/(Discount) to Current Price #ADDIN?

#ADDIN?
#ADDIN?
(2) Implied Perpetual Growth Rate of FCF = [(Terminal EBITDA)*(Terminal EBITDA Multiple)*(WACC) - (Terminal Year FCF)] / [(Terminal EBITDA)*(Terminal EBITDA Multiple) + (Terminal Year FCF)]
SENSITIVITY ANALYSIS
(USD in millions, except per share data)

Discounted Present Value of Terminal Value Present Value of Enterprise Value

AAPL CF EBITDA Exit Multiple EBITDA Exit Multiple
WACC #ADDIN? #ADDIN? #ADDIN? #ADDIN? #ADDIN? #ADDIN? #ADDIN? #ADDIN? #ADDIN? #ADDIN? #ADDIN?
#ADDIN? #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE!
#ADDIN? #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE!
#ADDIN? #VALUE! + #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! = #VALUE! #VALUE! #VALUE! #VALUE! #VALUE!
#ADDIN? #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE!
#ADDIN? #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE!

Net Debt(1) Present Value of Equity Equity Value per Share

AAPL at EBITDA Exit Multiple EBITDA Exit Multiple
WACC #ADDIN? #ADDIN? #ADDIN? #ADDIN? #ADDIN? #ADDIN? #ADDIN? #ADDIN? #ADDIN? #ADDIN? #ADDIN?
#ADDIN? #ADDIN? #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! Divided #VALUE! #VALUE! #VALUE! #VALUE! #VALUE!
#ADDIN? #ADDIN? #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! By #VALUE! #VALUE! #VALUE! #VALUE! #VALUE!
#ADDIN? - #ADDIN? = #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #ADDIN? #VALUE! #VALUE! #VALUE! #VALUE! #VALUE!
#ADDIN? #ADDIN? #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! Shrs #VALUE! #VALUE! #VALUE! #VALUE! #VALUE!
#ADDIN? #ADDIN? #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! = #VALUE! #VALUE! #VALUE! #VALUE! #VALUE!

Implied Perpetual Growth Rate of FCF Premium/(Discount) to Current Price per Share
AAPL EBITDA Exit Multiple EBITDA Exit Multiple
WACC #ADDIN? #ADDIN? #ADDIN? #ADDIN? #ADDIN? #ADDIN? #ADDIN? #ADDIN? #ADDIN? #ADDIN?
#ADDIN? #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE!
#ADDIN? #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE!
#ADDIN? => #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE!
#ADDIN? #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE!
#ADDIN? #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE!

(1) Equals Total Debt plus Preferred Equity plus Minority Interest Less Cash and Equivalents.

WORKING CAPITAL SCHEDULE

(USD in millions, except per share data) 995 996 997 998 999 1000

#ADDIN?
#ADDIN? #ADDIN? #ADDIN? #ADDIN? #ADDIN? #ADDIN? #ADDIN? #ADDIN? #ADDIN? #ADDIN? #ADDIN?
Total Revenue #ADDIN? #ADDIN? #ADDIN? #ADDIN? #ADDIN? #ADDIN? #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!
Cost of Revenue #ADDIN? #ADDIN? #ADDIN? #ADDIN? #ADDIN? #ADDIN? #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!

Accounts Receivable #ADDIN? #ADDIN? #ADDIN? #ADDIN? #ADDIN? #ADDIN? #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!
Receivable Days #ADDIN? #ADDIN? #ADDIN? #ADDIN? #ADDIN? #ADDIN? #ADDIN? #ADDIN? #ADDIN? #ADDIN? #ADDIN?
Inventory #ADDIN? #ADDIN? #ADDIN? #ADDIN? #ADDIN? #ADDIN? #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!
Inventory Days #ADDIN? #ADDIN? #ADDIN? #ADDIN? #ADDIN? #ADDIN? #ADDIN? #ADDIN? #ADDIN? #ADDIN? #ADDIN?
Other Current Assets #ADDIN? #ADDIN? #ADDIN? #ADDIN? #ADDIN? #ADDIN? #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!
Margin #ADDIN? #ADDIN? #ADDIN? #ADDIN? #ADDIN? #ADDIN? #ADDIN? #ADDIN? #ADDIN? #ADDIN? #ADDIN?
Total Non-Cash Current Assets #ADDIN? #ADDIN? #ADDIN? #ADDIN? #ADDIN? #ADDIN? #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!

Accounts Payable #ADDIN? #ADDIN? #ADDIN? #ADDIN? #ADDIN? #ADDIN? #ADDIN? #ADDIN? #ADDIN? #ADDIN? #ADDIN?
Payable Days #ADDIN? #ADDIN? #ADDIN? #ADDIN? #ADDIN? #ADDIN? #ADDIN? #ADDIN? #ADDIN? #ADDIN? #ADDIN?
Accrued Liabilities #ADDIN? #ADDIN? #ADDIN? #ADDIN? #ADDIN? #ADDIN? #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!
Margin #ADDIN? #ADDIN? #ADDIN? #ADDIN? #ADDIN? #ADDIN? #ADDIN? #ADDIN? #ADDIN? #ADDIN? #ADDIN?
Other Current Liabilities #ADDIN? #ADDIN? #ADDIN? #ADDIN? #ADDIN? #ADDIN? #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!
Margin #ADDIN? #ADDIN? #ADDIN? #ADDIN? #ADDIN? #ADDIN? #ADDIN? #ADDIN? #ADDIN? #ADDIN? #ADDIN?
Total Non-Debt Current Liabilties #ADDIN? #ADDIN? #ADDIN? #ADDIN? #ADDIN? #ADDIN? #ADDIN? #ADDIN? #ADDIN? #ADDIN? #ADDIN?

Net Working Capital / (Defecit) #ADDIN? #ADDIN? #ADDIN? #ADDIN? #ADDIN? #ADDIN? #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!

(Increase) / Decrease in Working Capital #ADDIN? #ADDIN? #ADDIN? #ADDIN? #ADDIN? #ADDIN? #DIV/0! #DIV/0! #DIV/0! #DIV/0!

Source: S&P Capital IQ

Copyright © 2019 S&P Global Market Intelligence LLC (and its affiliates as applicable) – All rights reserved.  This model and/or any data in it are provided subject to the written agreement of S&P Global Market Intelligence LLC governing the subscription service to which this model is applied.