We find Apple to be very overvalued versus Dell. Here are the factors we considered:
P/S Ratio
AAPL's P/S multiple of 7.3x is
significantly higher than the figure of 0.9x for DELL
Revenue Growth
Over the last twelve months, Apple has seen revenues change by 9.9% -
higher than the figure of -0.1% for DellIn the twelve-month period before that, revenues for Apple had changed by 2.3% -
lower than the 6.7% change for Dell
Operating Margin
Apple's operating margin was 25.2% for the most recent twelve-month period, which is
meaningfully higher than Dell's operating margin of 5.3%Over the last twelve months, the operating margin for Apple changed by 0.5 pp (percentage points) -
worse than the change of 3.5 pp for DellIn the twelve-month period before that, the operating margin for Apple had changed by -1.3 pp -
worse than the change of 2.2 pp for Dell over the same period
Note: AAPL reports its results on a fiscal year ending 9/28andDELL reports its results on a fiscal year ending 0/23
Apple Dell Valuation: Current Market Cap $2.2 Tril $81 Bil Current P/S Multiple 7.3x 0.9xApple significantly higher Revenues: Total Revenue (LTM) $294 Bil $92 Bil LTM Revenue Growth (Current) 9.9% -0.1%Apple higher LTM Revenue Growth (Year-ago) 2.3% 6.7%Apple lower Operating Income/Margin: Operating Income (LTM) $74 Bil $4.9 Bil Operating Margin (LTM) 25% 5.3%Apple meaningfully higher LTM Margin Change (Current) 0.5 pp 3.5 ppApple worse LTM Margin Change (Year-ago) -1.3 pp 2.2 ppApple worse