Munger Mode rating: 3 out of 5 — Hold. Our own rating from the research report below, on business quality first: moat durability and management, with price separating the top three.
We have owned few businesses in our lives as good as this one, and we have rarely seen one this good priced this fully. Apple sells a small number of products that a very large number of people will not give up, earns a gross margin near 50 percent on them, needs almost no capital to do so, and returns nearly every dollar it makes to its owners. Fiscal 2026 has been the strongest year in the company's history: three straight quarters of 16 to 17 percent revenue growth, a record 2.5 billion active devices, and a June quarter that ordinarily is the sleepy one coming in at $109 billion. The trouble is the price. At $316 the stock trades at roughly 36 times trailing earnings and about 37 times normalized free cash flow, against a ten-year average multiple of about 25.
Recent filings analysed: 8-K/A (2026-09-01), 10-Q (2026-07-31), 8-K (2026-07-30), 10-Q (2026-05-01).
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