Apple Inc.(AAPL)Company OverviewApple Inc., together with subsidiaries, designs, manufactures, and markets mobile communication and media devices, personal computing products, and portable digital music players worldwide. Its products and services include iPhone, a handheld product that combines a mobile phone, an iPod, and an Internet communications device; iPad, a multi-purpose mobile device; desktop computers, such as iMac, Mac Pro, and Mac mini; portable computers, including MacBook Pro and MacBook Air; a line of iPod portable digital music and media players; and iCloud, a cloud service. The company also offers a range of software products, including iOS and OS X operating system software; server software; iLife and iWork application software; and other application software consisting of Final Cut Pro, Logic Studio, Logic Pro, and its FileMaker Pro database software. It also manufactures the Apple LED Cinema Display and Thunderbolt Display; sells a variety of Apple-branded and third-party Mac-compatible and iOS-compatible peripheral products, including printers, storage devices, computer memory, digital video and still cameras, and various other computing products and supplies; and Apple TV, a deviceLow Risk 5 4 3 2 1 0

February 18, 2013 Figures in Millions except per share values

Strong Moat

High Growth

Good Financials

Under Valued

Well Managed

ValuationCurrent Price NCAV Total Net Reprod. Cost Earnings Power Value (EPV) Discounted Cash Flow (DCF) Katsenelson Absolute PE Ben Graham Formula $ $ $ $ $ $ $ 460.16 3.84 123.39 442.94 460.06 469.98 461.28

Margin of Safety-100.0% -100.0% -3.9% 0.0% 2.1% 0.2%

$800.00 $700.00 $600.00$500.00 $400.00 $300.00 $200.00 $100.00 $0.00 Feb-02

Price vs Intrinsic Value

Key StatisticsMkt Cap ($M) 52 Wk High 52 Wk Low % off 52Wk Low $ $ $ 432,117.85 705.07 435.00 5.8%

Company StatsShares Outstanding Shares Float Insider Ownership Insider Transactions Institutional Ownership Float Short Short Ratio Piotroski (TTM) Altman (MRQ) Beneish (TTM) 939.1 938.8 0.03% 3.7% 64.1% 2.0% 0.9 5 5.3 -2.8

Feb-04Stock Price

Feb-06

Feb-08Intrinsic Value

Feb-10

Feb-12Buy Price

Cash FlowsFree Cash Flow 5 yr FCF Growth 10 yr FCF Growth 54.3% 69.2%

Fundamental RatiosP/E P/E (cash adjusted) EV/EBITDA EV/Free Cash Flow P/S P/BV P/Tang BV P/CF P/FCF ROE ROA ROIC CROIC Current Ratio Total Debt/Equity Ratio Inventory Turnover2010 65,225 25,684 39.38% 1,782 2.73% 18,385 28.19% 14,013 21.48% 2011 108,249 43,818 40.48% 2,429 2.24% 33,790 31.22% 25,922 23.95%

2011 13.17 12.16 8.86 10.49 3.15 4.46 4.67 10.46 11.35 33.8% 22.3% 41.0% 48.2% 1.61 0.52 70.532012 156,508 68,662 43.87% 3,381 2.16% 55,241 35.30% 41,733 26.67%

2012 14.63 13.93 9.94 14.03 3.90 5.17 5.36 12.01 14.73 35.3% 23.7% 38.1% 38.2% 1.50 0.49 112.12

TTM 10.43 9.48 6.68 8.55 2.65 3.42 3.55 8.38 9.41 32.8% 21.3% 37.6% 42.3% 1.54 0.54 65.75

EffectivenessCROIC Avg FCF/S Avg ROA Avg ROE Avg 64.3% 25.3% 18.0% 27.7%

Margins & ProfitabilityGross Gross Margin Operating Operating Margin Net Profit Net Margin 41.9% 33.5% 25.4%

Financial Strength (MRQ) EfficiencyReceivables Turnover (TTM) Inventory Turnover (TTM) Days Sales Outstanding (TTM) 8.2 65.8 47.7 Current Ratio(MRQ) Quick Ratio(MRQ) LTD/Eq(MRQ) Tot D/Eq(MRQ) 1.5 1.5 0.0 0.0

Selected Financial Statements(In Millions, Except per Share Amounts)

Revenue Gross Profit Margin % R&D Margin % Operating Income Margin % Net Income Margin % Earnings Per Share Basic Diluted Weighted Average Diluted Shares Outstanding Dividends Per Share Dividend Yield Net Cash From Operating Activities(Dollars in Millions)

$ $ $ $ $

2008 32,479 11,145 34.31% 1,109 3.41% 6,275 19.32% 4,834 14.88%

$ $ $ $ $

2009 42,905 17,222 40.14% 1,333 3.11% 11,740 27.36% 8,235 19.19%

$ $ $ $ $

$ $ $ $ $

$ $ $ $ $

$ $ $ $ $

TTM/Latest 164,687 69,019 41.91% 3,633 2.21% 55,111 33.46% 41,747 25.35%

$ $

5.48 5.36 902.14

$ $

9.22 9.08 907.01

$ $

15.41 15.15 924.71

$ $

28.05 27.68 936.65

$ $

44.64 44.15 945.36

$ $

44.55 44.10 947.22 5.26 1.14% 56,728

$ $

$ 0.00% 9,596 $

$ 0.00% 10,159 $

$ 0.00% 18,595 $

$ 0.00% 37,529 $

2.63 $ 0.41% 50,856 $

Net Property, Plants & Equipment Total Assets Long-term Debt Stockholders' Equity

$ $ $ $

2,455 39,572 4,450 21,030

$ $ $ $

2,954 47,501 4,355 31,640

$ $ $ $

4,768 75,183 6,670 47,791

$ $ $ $

7,777 116,371 11,786 76,615

$ $ $ $

15,452 176,064 19,312 118,210

$ $ $ $

15,422 196,088 21,863 127,346

Apple Inc. (AAPL)2/18/2013 2003 2004 2005 2006 2007 2008 2009 2010

Enter Ticker

RefreshFigures in Millions except per share values

CLEAR

2011

2012

Q1

Q2

Q3

Q4

Q1

1000000 TTM Next Year Est

Income StatementRevenue% change from prev year

9$ $ $ 6,207.0 4,499.0 72.5% 1,708.0 27.5% $ $ $

88,279.0 33.4% 6,020.0 72.7% 2,259.0 27.3% $ $ $

713,931.0 68.3% 9,888.0 71.0% 4,043.0 29.0% $ $ $

619,315.0 38.6% 13,717.0 71.0% 5,598.0 29.0% $ $ $

524,006.0 24.3% 15,852.0 66.0% 8,154.0 34.0% $ $ $

432,479.0 35.3% 21,334.0 65.7% 11,145.0 34.3% $ $ $

342,905.0 32.1% 25,683.0 59.9% 17,222.0 40.1% $ $ $

265,225.0 52.0% 39,541.0 60.6% 25,684.0 39.4% $ $ $

1108,249.0 66.0% 64,431.0 59.5% 43,818.0 40.5% $ $ $

0156,508.0 44.6% 87,846.0 56.1% 68,662.0 43.9% $ $ $

346,333.0 25,630.0 55.3% 20,703.0 44.7% $ $ $

339,186.0 -15.4% 20,622.0 52.6% 18,564.0 47.4% $ $ $

235,023.0 -10.6% 20,029.0 57.2% 14,994.0 42.8% $ $ $

135,966.0 2.7% 21,565.0 60.0% 14,401.0 40.0% $ $ $

054,512.0 51.6% 33,452.0 61.4% 21,060.0 38.6% $ $ $ 164,687.0 5.2% 95,668.0 58.1% 69,019.0 41.9%

Cost of Revenues COGS (%) Gross Profit Gross Income (%)

Operating ExpensesSelling, General & Admin. Expenses SG&A (%) Research & Development R&D (%) EBITDA EBITDA (%) Other Special Charges Depreciation & Amortization D&A (%) Operating Income Operating Income (%) $ $ $ $ $ $ 1,212.0 19.5% 471.0 7.6% 113.0 1.8% 113.0 1.8% 25.0 0.4% $ $ $ $ $ $ 1,421.0 17.2% 489.0 5.9% 476.0 5.7% 150.0 1.8% 349.0 4.2% $ $ $ $ $ $ 1,859.0 13.3% 534.0 3.8% 1,829.0 13.1% 179.0 1.3% 1,650.0 11.8% $ $ $ $ $ $ 2,433.0 12.6% 712.0 3.7% 2,678.0 13.9% 225.0 1.2% 2,453.0 12.7% $ $ $ $ $ $ 2,963.0 12.3% 782.0 3.3% 4,726.0 19.7% 317.0 1.3% 4,409.0 18.4% $ $ $ $ $ $ 3,761.0 11.6% 1,109.0 3.4% 6,748.0 20.8% 473.0 1.5% 6,275.0 19.3% $ $ $ $ $ $ 4,149.0 9.7% 1,333.0 3.1% 12,474.0 29.1% 734.0 1.7% 11,740.0 27.4% $ $ $ $ $ $ 5,517.0 8.5% 1,782.0 2.7% 19,412.0 29.8% 1,027.0 1.6% 18,385.0 28.2% $ $ $ $ $ $ 7,599.0 7.0% 2,429.0 2.2% 35,604.0 32.9% 1,814.0 1.7% 33,790.0 31.2% $ $ $ $ $ $ 10,040.0 6.4% 3,381.0 2.2% 58,518.0 37.4% 3,277.0 2.1% 55,241.0 35.3% $ $ $ $ $ $ 2,605.0 5.6% 758.0 1.6% 18,061.0 39.0% 721.0 1.6% 17,340.0 37.4% $ $ $ $ $ $ 2,339.0 6.0% 841.0 2.1% 16,124.0 41.1% 740.0 1.9% 15,384.0 39.3% $ $ $ $ $ $ 2,545.0 7.3% 876.0 2.5% 12,408.0 35.4% 835.0 2.4% 11,573.0 33.0% $ $ $ $ $ $ 2,551.0 7.1% 906.0 2.5% 11,925.0 33.2% 981.0 2.7% 10,944.0 30.4% $ $ $ $ $ $ 2,840.0 5.2% 1,010.0 1.9% 18,798.0 34.5% 1,588.0 2.9% 17,210.0 31.6% $ $ $ $ $ $ 10,275.0 6.2% 3,633.0 2.2% 59,255.0 36.0% 4,144.0 2.5% 55,111.0 33.5%

Other Income and ExpenseEBIT Interest Expense Interest Income Other Income Total Other Income Income Before Taxes (EBT) Income Taxes/(Credit) Tax Rate % Earnings After Taxes Minority Interest Expense Net Income From Continuing Operations Net Income From Discontinued Operations Net Income From Total Operations Net Income (%) $ $ $ $ $ $ $ $ $ $ $ $ 92.0 83.0 10.0 93.0 92.0 24.0 26.1% 68.0 68.0 69.0 1.1% $ $ $ $ $ $ $ $ $ $ $ $ 383.0 53.0 4.0 57.0 383.0 107.0 27.9% 276.0 276.0 276.0 3.3% $ $ $ $ $ $ $ $ $ $ $ $ 1,815.0 183.0 (18.0) 165.0 1,815.0 480.0 26.4% 1,335.0 1,335.0 1,335.0 9.6% $ $ $ $ $ $ $ $ $ $ $ $ 2,818.0 394.0 (29.0) 365.0 2,818.0 829.0 29.4% 1,989.0 1,989.0 1,989.0 10.3% $ $ $ $ $ $ $ $ $ $ $ $ 5,008.0 647.0 (48.0) 599.0 5,008.0 1,512.0 30.2% 3,496.0 3,496.0 3,496.0 14.6% $ $ $ $ $ $ $ $ $ $ $ $ 6,895.0 620.0 620.0 6,895.0 2,061.0 29.9% 4,834.0 4,834.0 4,834.0 14.9% $ $ $ $ $ $ $ $ $ $ $ $ 12,066.0 407.0 (81.0) 326.0 12,066.0 3,831.0 31.8% 8,235.0 8,235.0 8,235.0 19.2% $ $ $ $ $ $ $ $ $ $ $ $ 18,540.0 311.0 (156.0) 155.0 18,540.0 4,527.0 24.4% 14,013.0 14,013.0 14,013.0 21.5% $ $ $ $ $ $ $ $ $ $ $ $ 34,205.0 519.0 (104.0) 415.0 34,205.0 8,283.0 24.2% 25,922.0 25,922.0 25,922.0 23.9% $ $ $ $ $ $ $ $ $ $ $ $ 55,763.0 1,088.0 (566.0) 522.0 55,763.0 14,030.0 25.2% 41,733.0 41,733.0 41,733.0 26.7% $ $ $ $ $ $ $ $ $ $ $ $ 17,477.0 137.0 137.0 17,477.0 4,413.0 25.3% 13,064.0 13,064.0 13,064.0 28.2% $ $ $ $ $ $ $ $ $ $ $ $ 15,532.0 148.0 148.0 15,532.0 3,910.0 25.2% 11,622.0 11,622.0 11,622.0 29.7% $ $ $ $ $ $ $ $ $ $ $ $ 11,861.0 288.0 288.0 11,861.0 3,037.0 25.6% 8,824.0 8,824.0 8,824.0 25.2% $ $ $ $ $ $ $ $ $ $ $ $ 10,893.0 1,088.0 (1,139.0) (51.0) 10,893.0 2,670.0 24.5% 8,223.0 8,223.0 8,223.0 22.9% $ $ $ $ $ $ $ $ $ $ $ $ 17,672.0 421.0 41.0 462.0 17,672.0 4,594.0 26.0% 13,078.0 13,078.0 13,078.0 24.0% $ $ $ $ $ $ $ $ $ $ $ $ 55,958.0 1,509.0 (662.0) 847.0 55,958.0 14,211.0 25.4% 41,747.0 41,747.0 41,747.0 25.3%

Shares and EPSTotal Basic EPS Fully Diluted EPS Dividends Paid Per Share Basic Shares Outstanding Diluted Shares Outstanding User Defined Shares Outstanding $ $ $ 0.10 0.10 721.3 726.9 $ $ $ 0.37 0.36 743.2 774.6 $ $ $ 1.65 1.56 808.4 856.8 $ $ $ 2.36 2.27 844.1 877.5 $ $ $ 4.04 3.93 864.6 889.3 $ $ $ 5.48 5.36 881.6 902.1 $ $ $ 9.22 9.08 893.0 907.0 $ $ $ 15.41 15.15 909.5 924.7 $ $ $ 28.05 27.68 924.3 936.6 $ $ $ 44.64 44.15 2.65 934.8 945.4 $ $ $ 14.03 13.87 931.0 941.6 $ $ $ 12.45 12.30 933.6 944.9 $ $ $ 9.42 9.32 936.6 947.1 $ $ $ 8.75 8.67 2.65 934.8 945.4 $ $ $ 13.93 13.81 2.65 938.9 947.2 $ $ $ 44.55 44.10 5.30 939.1 947.2

Balance SheetAssetsCash and Equiv Short-Term Investments Net Receivables% change from prev year

MRQ$ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 3,396.0 1,170.0 766.0 4.0 2.0 50.0 56.0 190.0 309.0 5,887.0 350.0 357.0 467.0 1,174.0 669.0 109.0 150.0 928.0 6,815.0 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 2,969.0 2,495.0 774.0 1.0% 1.0 100.0 101.0 80.4% 231.0 485.0 7,055.0 351.0 446.0 501.0 1,298.0 707.0 97.0 191.0 995.0 8,050.0 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 3,491.0 4,770.0 895.0 15.6% 165.0 165.0 63.4% 331.0 648.0 10,300.0 361.0 545.0 575.0 1,481.0 817.0 96.0 183.0 155.0 1,251.0 11,551.0 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 6,392.0 3,718.0 1,252.0 39.9% 270.0 270.0 63.6% 607.0 2,270.0 14,509.0 626.0 760.0 689.0 2,075.0 1,281.0 160.0 38.0 1,217.0 2,696.0 17,205.0 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 9,352.0 6,034.0 4,029.0 221.8% 346.0 346.0 28.1% 417.0 782.0 996.0 21,956.0 762.0 1,019.0 1,060.0 2,841.0 1,832.0 382.0 38.0 88.0 1,051.0 3,391.0 25,347.0 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 11,875.0 12,615.0 4,704.0 16.8% 509.0 509.0 47.1% 475.0 1,447.0 3,065.0 34,690.0 810.0 1,324.0 1,613.0 3,747.0 2,455.0 285.0 207.0 1,935.0 4,882.0 39,572.0 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 5,263.0 18,201.0 5,057.0 7.5% 455.0 455.0 -10.6% 309.0 1,135.0 1,135.0 31,555.0 955.0 1,665.0 2,047.0 4,667.0 2,954.0 353.0 206.0 163.0 12,270.0 15,946.0 47,501.0 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 11,261.0 14,359.0 9,924.0 96.2% 1,051.0 1,051.0 131.0% 1,636.0 3,447.0 41,678.0 1,471.0 2,030.0 3,733.0 7,234.0 4,768.0 342.0 741.0 27,654.0 33,505.0 75,183.0 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 9,815.0 16,137.0 11,717.0 18.1% 776.0 776.0 -26.2% 2,014.0 4,529.0 44,988.0 2,059.0 2,599.0 7,110.0 11,768.0 7,777.0 3,536.0 896.0 59,174.0 71,383.0 116,371.0 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 10,746.0 18,383.0 18,692.0 59.5% 791.0 791.0 1.9% 2,583.0 6,458.0 57,653.0 2,439.0 3,464.0 15,984.0 21,887.0 15,452.0 4,224.0 1,135.0 97,600.0 118,411.0 176,064.0 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 10,310.0 19,846.0 16,484.0 40.7% 1,236.0 1,236.0 59.3% 1,937.0 4,958.0 54,771.0 2,090.0 2,742.0 7,508.0 12,340.0 7,816.0 3,472.0 896.0 71,726.0 83,910.0 138,681.0 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 10,121.0 18,417.0 13,769.0 -26.3% 1,102.0 1,102.0 39.3% 2,253.0 5,050.0 50,712.0 2,156.0 2,930.0 8,855.0 13,941.0 8,847.0 3,604.0 1,141.0 86,630.0 100,222.0 150,934.0 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 7,945.0 19,709.0 14,298.0 3.8% 1,122.0 1,122.0 1.8% 2,309.0 6,560.0 51,943.0 2,315.0 3,086.0 10,804.0 16,205.0 10,487.0 4,329.0 1,132.0 95,005.0 110,953.0 162,896.0 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 10,746.0 18,383.0 18,692.0 30.7% 791.0 791.0 -29.5% 2,583.0 6,458.0 57,653.0 2,439.0 3,464.0 15,984.0 21,887.0 15,452.0 4,224.0 1,135.0 97,600.0 118,411.0 176,064.0 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 16,154.0 23,666.0 21,534.0 15.2% 1,455.0 1,455.0 83.9% 2,895.0 6,644.0 72,348.0 2,627.0 3,593.0 16,994.0 23,214.0 15,422.0 4,462.0 1,381.0 102,475.0 123,740.0 196,088.0 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 16,154.0 23,666.0 21,534.0 15.2% 1,455.0 1,455.0 83.9% 2,895.0 6,644.0 72,348.0 2,627.0 3,593.0 16,994.0 23,214.0 15,422.0 4,462.0 1,381.0 102,475.0 123,740.0 196,088.0

Inventories, raw materials Inventories, work in progress Inventories, purchased components Inventories, finished goods Inventories, other Inventories% change from prev year

Prepaid Expenses Current Deferred Income Taxes Other Current Assets Total Current Assets Land and Improvements Building and Improvements Machinery, Furniture & Equipment Construction in Progress Other Fixed Assets Total Fixed Assets Net Fixed Assets Intangible Assets Goodwill Non Current Deferred Income Taxes Other Long-Term Assets Total Long-Term Assets Total Assets

Liabilities & Stockholders' EquityAccounts payable Short-Term Debt Taxes Payable Accrued Expenses Accrued Liabilities Deferred Revenues Current Deferred Income Taxes Other Current Liabilities Total Current Liabilities Long-Term Debt Other Liabilities Deferred Income Taxes Total Long-Term Liabilities Total Liabilities Retained Earnings Preferred Equity Total Equity Total Liabilities & Equity $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 1,154.0 304.0 899.0 2,357.0 235.0 235.0 2,592.0 2,394.0 4,223.0 6,815.0 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 1,451.0 1,229.0 2,680.0 294.0 294.0 2,974.0 2,670.0 5,076.0 8,050.0 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 1,779.0 576.0 501.0 628.0 3,484.0 601.0 601.0 4,085.0 4,005.0 7,466.0 11,551.0 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 3,390.0 1,191.0 746.0 1,144.0 6,471.0 369.0 381.0 750.0 7,221.0 5,607.0 9,984.0 17,205.0 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 4,970.0 1,260.0 1,410.0 1,659.0 9,299.0 897.0 619.0 1,516.0 10,815.0 9,101.0 14,532.0 25,347.0 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 5,520.0 8,572.0 14,092.0 3,775.0 675.0 4,450.0 18,542.0 13,845.0 21,030.0 39,572.0 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 5,601.0 3,422.0 2,053.0 430.0 11,506.0 2,139.0 2,216.0 4,355.0 15,861.0 23,353.0 31,640.0 47,501.0 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 12,015.0 1,593.0 2,984.0 4,130.0 20,722.0 2,370.0 4,300.0 6,670.0 27,392.0 37,169.0 47,791.0 75,183.0 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 14,632.0 8,107.0 4,091.0 1,140.0 27,970.0 11,786.0 11,786.0 39,756.0 62,841.0 76,615.0 116,371.0 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 21,175.0 9,879.0 5,953.0 1,535.0 38,542.0 19,312.0 19,312.0 57,854.0 101,289.0 118,210.0 176,064.0 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 18,221.0 7,435.0 6,431.0 2,520.0 34,607.0 14,020.0 14,020.0 48,627.0 75,709.0 90,054.0 138,681.0 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 17,011.0 6,733.0 6,993.0 1,299.0 32,036.0 16,400.0 16,400.0 48,436.0 87,124.0 102,498.0 150,934.0 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 16,808.0 8,832.0 5,822.0 1,598.0 33,060.0 18,090.0 18,090.0 51,150.0 95,641.0 111,746.0 162,896.0 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 21,175.0 9,879.0 5,953.0 1,535.0 38,542.0 19,312.0 19,312.0 57,854.0 101,289.0 118,210.0 176,064.0 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 26,398.0 11,214.0 7,274.0 1,993.0 46,879.0 21,863.0 21,863.0 68,742.0 109,567.0 127,346.0 196,088.0 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 26,398.0 11,214.0 7,274.0 1,993.0 46,879.0 21,863.0 21,863.0 68,742.0 109,567.0 127,346.0 196,088.0

Cash Flows StatementCash Flows From Operating ActivitiesNet Income Depreciation & Amortization Deferred Income Taxes Operating Gains Extraordinary Gains (Incr) Decr. in Receivables (Incr) Decr. in Inventories (Incr) Decr. in Prepaid Expenses (Incr) Decr. in Other Current Assets Decr. (Incr) in payables Decr. (Incr) in Other Current Liabilities Decr. (Incr) in Other Working Capital Other Non Cash Items Net Cash From Operating Activities $ $ $ $ $ $ $ $ $ $ $ $ $ $ 69.0 113.0 (11.0) (8.0) (201.0) (11.0) (64.0) 243.0 159.0 289.0 $ $ $ $ $ $ $ $ $ $ $ $ $ $ 276.0 150.0 20.0 40.0 (8.0) (45.0) (215.0) 297.0 419.0 934.0 $ $ $ $ $ $ $ $ $ $ $ $ $ $ 1,335.0 179.0 52.0 504.0 (121.0) (64.0) (211.0) 328.0 533.0 2,535.0 $ $ $ $ $ $ $ $ $ $ $ $ $ $ 1,989.0 225.0 53.0 11.0 (357.0) (105.0) (1,626.0) 1,611.0 256.0 163.0 2,220.0 $ $ $ $ $ $ $ $ $ $ $ $ $ $ 3,496.0 317.0 78.0 12.0 (385.0) (76.0) (1,540.0) 1,494.0 1,832.0 242.0 5,470.0 $ $ $ $ $ $ $ $ $ $ $ $ $ $ 4,834.0 473.0 (368.0) 22.0 (785.0) (163.0) (1,958.0) 596.0 5,642.0 787.0 516.0 9,596.0 $ $ $ $ $ $ $ $ $ $ $ $ $ $ 8,235.0 734.0 1,040.0 26.0 (939.0) 54.0 749.0 92.0 521.0 (1,063.0) 710.0 10,159.0 $ $ $ $ $ $ $ $ $ $ $ $ $ $ 14,013.0 1,027.0 1,440.0 24.0 (4,860.0) (596.0) (1,514.0) 6,307.0 1,875.0 879.0 18,595.0 $ $ $ $ $ $ $ $ $ $ $ $ $ $ 25,922.0 1,814.0 2,868.0 (1,791.0) 275.0 2,515.0 4,758.0 1,168.0 37,529.0 $ $ $ $ $ $ $ $ $ $ $ $ $ $ 41,733.0 3,277.0 4,405.0 (6,965.0) (15.0) 4,467.0 2,214.0 1,740.0 50,856.0 $ $ $ $ $ $ $ $ $ $ $ $ $ $ 13,064.0 721.0 1,456.0 (4,767.0) (460.0) 4,314.0 2,806.0 420.0 17,554.0 $ $ $ $ $ $ $ $ $ $ $ $ $ $ 24,686.0 1,461.0 2,915.0 (2,042.0) (326.0) 2,809.0 1,184.0 844.0 31,531.0 $ $ $ $ $ $ $ $ $ $ $ $ $ $ 33,510.0 2,296.0 4,066.0 (2,571.0) (346.0) 2,450.0 1,023.0 1,292.0 41,720.0 $ $ $ $ $ $ $ $ $ $ $ $ $ $ 41,733.0 3,277.0 4,405.0 (6,965.0) (15.0) 4,467.0 2,214.0 1,740.0 50,856.0 $ $ $ $ $ $ $ $ $ $ $ $ $ $ 13,078.0 1,588.0 1,179.0 (2,842.0) (664.0) 6,145.0 4,397.0 545.0 23,426.0

TTM$ $ $ $ $ $ $ $ $ $ $ $ $ $ 41,747.0 4,144.0 4,128.0 (5,040.0) (219.0) 6,298.0 3,805.0 1,865.0 56,728.0

Cash Flows From Investing ActivitiesSale of Long-term Investments Sale of Short-term Investments Capital Expenditures Acquisitions Sale of Assets Purchase of Long-term Investments Purchase of Short-term Investments Other Investing Changes, Net Net Cash From Investing Activities $ $ $ $ $ $ $ $ $ 45.0 (164.0) (2,648.0) 33.0 828.0 $ $ $ $ $ $ $ $ $ 5.0 (176.0) (3,270.0) 11.0 (1,488.0) $ $ $ $ $ $ $ $ $ (260.0) (11,470.0) (21.0) (2,556.0) $ $ $ $ $ $ $ $ $ (657.0) (25.0) (7,255.0) (18.0) 357.0 $ $ $ $ $ $ $ $ $ (986.0) (17.0) (11,719.0) 49.0 (3,249.0) $ $ $ $ $ $ $ $ $ (1,199.0) (220.0) (38.0) (22,965.0) (10.0) (8,189.0) $ $ $ $ $ $ $ $ $ (1,213.0) (101.0) (46,724.0) (74.0) (17,434.0) $ $ $ $ $ $ $ $ $ (2,121.0) (638.0) (18.0) (57,793.0) (2.0) (13,854.0) $ $ $ $ $ $ $ $ $ (7,452.0) (244.0) (102,317.0) (259.0) (40,419.0) $ $ $ $ $ $ $ $ $ 99,770.0 (9,402.0) (350.0) (151,232.0) (48.0) (48,227.0) $ $ $ $ $ $ $ $ $ (1,429.0) (40,175.0) (34.0) (17,128.0) $ $ $ $ $ $ $ $ $ (2,938.0) (350.0) (85,022.0) (48.0) (31,604.0) $ $ $ $ $ $ $ $ $ 73,140.0 (5,901.0) (350.0) (121,091.0) (56.0) (43,914.0) $ $ $ $ $ $ $ $ $ 99,770.0 (9,402.0) (350.0) (151,232.0) (48.0) (48,227.0) $ $ $ $ $ $ $ $ $ (2,455.0) (284.0) (37,192.0) (52.0) (13,521.0) $ $ $ $ $ $ $ $ $ 99,770.0 (10,428.0) (634.0) (151,232.0) 2,983.0 (66.0) (44,620.0)

Cash Flows From Financing ActivitiesIssuance of Capital Stock Repurchase of Capital Stock Net Issuance of Stock Issuance of Debt Repayment of Debt Net Issuance of Debt Dividends Paid Cash from Financing Cash at Beginning of the Period Cash at End of the Period Change in Cash $ $ $ $ $ $ $ $ $ $ $ 53.0 (26.0) 27.0 27.0 2,252.0 3,396.0 1,144.0 $ $ $ $ $ $ $ $ $ $ $ 427.0 427.0 (300.0) (300.0) 127.0 3,396.0 2,969.0 (427.0) $ $ $ $ $ $ $ $ $ $ $ 543.0 543.0 543.0 2,969.0 3,491.0 522.0 $ $ $ $ $ $ $ $ $ $ $ 318.0 (355.0) (37.0) 324.0 3,491.0 6,392.0 2,901.0 $ $ $ $ $ $ $ $ $ $ $ 365.0 (3.0) 362.0 739.0 6,392.0 9,352.0 2,960.0 $ $ $ $ $ $ $ $ $ $ $ 483.0 (124.0) 359.0 1,116.0 9,352.0 11,875.0 2,523.0 $ $ $ $ $ $ $ $ $ $ $ 475.0 475.0 663.0 11,875.0 5,263.0 (6,612.0) $ $ $ $ $ $ $ $ $ $ $ 912.0 912.0 1,257.0 5,263.0 11,261.0 5,998.0 $ $ $ $ $ $ $ $ $ $ $ 831.0 831.0 1,444.0 11,261.0 9,815.0 (1,446.0) $ $ $ $ $ $ $ $ $ $ $ 665.0 665.0 (2,488.0) (1,698.0) 9,815.0 10,746.0 931.0 $ $ $ $ $ $ $ $ $ $ $ 91.0 91.0 69.0 9,815.0 10,310.0 495.0 $ $ $ $ $ $ $ $ $ $ $ 377.0 377.0 379.0 9,815.0 10,121.0 306.0 $ $ $ $ $ $ $ $ $ $ $ 433.0 433.0 324.0 9,815.0 7,945.0 (1,870.0) $ $ $ $ $ $ $ $ $ $ $ 665.0 665.0 (2,488.0) (1,698.0) 9,815.0 10,746.0 931.0 $ $ $ $ $ $ $ $ $ $ $ 76.0 (1,950.0) (1,874.0) (2,493.0) (4,497.0) 10,746.0 16,154.0 5,408.0 $ $ $ $ $ $ $ $ $ $ $ 650.0 (1,950.0) (1,300.0) (4,981.0) (6,264.0) 10,746.0 16,590.0 5,844.0

Free Cash FlowCash from Operations Cap Ex Free Cash Flow Owner Earnings FCF User Defined $ $ $ $ 289.0 164.0 125.0 (108.0) $ $ $ $ 934.0 176.0 758.0 (198.0) $ $ $ $ 2,535.0 260.0 2,275.0 789.0 $ $ $ $ 2,220.0 657.0 1,563.0 1,941.0 $ $ $ $ 5,470.0 986.0 4,484.0 1,744.0 $ $ $ $ 9,596.0 1,199.0 8,397.0 505.0 $ $ $ $ 10,159.0 1,213.0 8,946.0 9,052.0 $ $ $ $ 18,595.0 2,121.0 16,474.0 12,586.0 $ $ $ $ 37,529.0 7,452.0 30,077.0 15,695.0 $ $ $ $ 50,856.0 9,402.0 41,454.0 37,647.0 $ $ $ $ 17,554.0 1,429.0 16,125.0 10,883.0 $ $ $ $ 31,531.0 2,938.0 28,593.0 22,428.0 $ $ $ $ 41,720.0 5,901.0 35,819.0 30,641.0 $ $ $ $ 50,856.0 9,402.0 41,454.0 37,647.0 $ $ $ $ 23,426.0 2,455.0 20,971.0 5,720.0 $ $ $ $ 56,728.0 10,428.0 46,300.0 32,484.0

Apple Inc. (AAPL)2/18/2013 2003 2004100.0% 72.7% 27.3%

Enter Ticker

Refresh

2005100.0% 71.0% 29.0%

2006100.0% 71.0% 29.0%

2007100.0% 66.0% 34.0%

2008100.0% 65.7% 34.3%

2009100.0% 59.9% 40.1%

2010100.0% 60.6% 39.4%

2011100.0% 59.5% 40.5%

2012100.0% 56.1% 43.9%

Q2 100.0% 52.6% 47.4%

Q3 100.0% 57.2% 42.8%

Q4 100.0% 60.0% 40.0%

Q1 100.0% 61.4% 38.6%

TTM100.0% 58.1% 41.9%

Income StatementRevenue Cost of Revenues Gross Profit 100.0% 72.5% 27.5%

Operating ExpensesSelling, General & Admin. Expenses Research & Development EBITDA Other Special Charges Depreciation & Amortization Operating Income 19.5% 7.6% 1.8% 0.0% 1.8% 0.4% 17.2% 5.9% 5.7% 0.0% 1.8% 4.2% 13.3% 3.8% 13.1% 0.0% 1.3% 11.8% 12.6% 3.7% 13.9% 0.0% 1.2% 12.7% 12.3% 3.3% 19.7% 0.0% 1.3% 18.4% 11.6% 3.4% 20.8% 0.0% 1.5% 19.3% 9.7% 3.1% 29.1% 0.0% 1.7% 27.4% 8.5% 2.7% 29.8% 0.0% 1.6% 28.2% 7.0% 2.2% 32.9% 0.0% 1.7% 31.2% 6.4% 2.2% 37.4% 0.0% 2.1% 35.3% 6.0% 2.1% 41.1% 0.0% 1.9% 39.3% 7.3% 2.5% 35.4% 0.0% 2.4% 33.0% 7.1% 2.5% 33.2% 0.0% 2.7% 30.4% 5.2% 1.9% 34.5% 0.0% 2.9% 31.6% 6.2% 2.2% 36.0% 0.0% 2.5% 33.5%

Other Income and ExpenseInterest Expense Other Income Earnings Before Taxes Income Taxes/(Credit) Earnings After Taxes Minority Interest Net Income From Continuing Operations Net Income From Discontinued Operations Net Income From Total Operations 0.0% 0.2% 1.5% 0.4% 1.1% 0.0% 1.1% 0.0% 1.1% 0.0% 0.0% 4.6% 1.3% 3.3% 0.0% 3.3% 0.0% 3.3% 0.0% -0.1% 13.0% 3.4% 9.6% 0.0% 9.6% 0.0% 9.6% 0.0% -0.2% 14.6% 4.3% 10.3% 0.0% 10.3% 0.0% 10.3% 0.0% -0.2% 20.9% 6.3% 14.6% 0.0% 14.6% 0.0% 14.6% 0.0% 1.9% 21.2% 6.3% 14.9% 0.0% 14.9% 0.0% 14.9% 0.0% -0.2% 28.1% 8.9% 19.2% 0.0% 19.2% 0.0% 19.2% 0.0% -0.2% 28.4% 6.9% 21.5% 0.0% 21.5% 0.0% 21.5% 0.0% -0.1% 31.6% 7.7% 23.9% 0.0% 23.9% 0.0% 23.9% 0.0% -0.4% 35.6% 9.0% 26.7% 0.0% 26.7% 0.0% 26.7% 0.0% 0.4% 39.6% 10.0% 29.7% 0.0% 29.7% 0.0% 29.7% 0.0% 0.8% 33.9% 8.7% 25.2% 0.0% 25.2% 0.0% 25.2% 0.0% -3.2% 30.3% 7.4% 22.9% 0.0% 22.9% 0.0% 22.9% 0.0% 0.1% 32.4% 8.4% 24.0% 0.0% 24.0% 0.0% 24.0% 0.0% -0.4% 34.0% 8.6% 25.3% 0.0% 25.3% 0.0% 25.3%

Balance SheetAssetsCash & Equivalents Short-Term Investments Net Receivables Inventories Other Current Assets Total Current Assets Fixed Assets Intangible Assets Other Long-Term Assets Total Long-Term Assets Total Assets 49.8% 17.2% 11.2% 0.8% 4.5% 86.4% 9.8% 1.6% 2.2% 13.6% 100.0% 36.9% 31.0% 9.6% 1.3% 6.0% 87.6% 8.8% 1.2% 2.4% 12.4% 100.0% 30.2% 41.3% 7.7% 1.4% 5.6% 89.2% 7.1% 0.8% 1.3% 10.8% 100.0% 37.2% 21.6% 7.3% 1.6% 13.2% 84.3% 7.4% 0.9% 7.1% 15.7% 100.0% 36.9% 23.8% 15.9% 1.4% 3.9% 86.6% 7.2% 1.5% 4.1% 13.4% 100.0% 30.0% 31.9% 11.9% 1.3% 7.7% 87.7% 6.2% 0.7% 4.9% 12.3% 100.0% 11.1% 38.3% 10.6% 1.0% 2.4% 66.4% 6.2% 0.7% 25.8% 33.6% 100.0% 15.0% 19.1% 13.2% 1.4% 4.6% 55.4% 6.3% 0.5% 36.8% 44.6% 100.0% 8.4% 13.9% 10.1% 0.7% 3.9% 38.7% 6.7% 3.0% 50.8% 61.3% 100.0% 6.1% 10.4% 10.6% 0.4% 3.7% 32.7% 8.8% 2.4% 55.4% 67.3% 100.0% 6.7% 12.2% 9.1% 0.7% 3.3% 33.6% 5.9% 2.4% 57.4% 66.4% 100.0% 4.9% 12.1% 8.8% 0.7% 4.0% 31.9% 6.4% 2.7% 58.3% 68.1% 100.0% 6.1% 10.4% 10.6% 0.4% 3.7% 32.7% 8.8% 2.4% 55.4% 67.3% 100.0% 8.2% 12.1% 11.0% 0.7% 3.4% 36.9% 7.9% 2.3% 52.3% 63.1% 100.0%

MRQ8.2% 12.1% 11.0% 0.7% 3.4% 36.9% 7.9% 2.3% 52.3% 63.1% 100.0%

Liabilities & Stockholders' EquityAccounts payable Short-Term Debt Taxes Payable Accrued Liabilities Other Current Liabilities Total Current Liabilities Long-Term Debt Other Liabilities Deferred Income Taxes Total Long-Term Liabilities Total Liabilities Retained Earnings Preferred Equity Total Equity Total Liabilities & Equity 16.9% 4.5% 0.0% 0.0% 0.0% 34.6% 0.0% 0.0% 3.4% 3.4% 38.0% 35.1% 0.0% 62.0% 100.0% 18.0% 0.0% 0.0% 0.0% 0.0% 33.3% 0.0% 0.0% 3.7% 3.7% 36.9% 33.2% 0.0% 63.1% 100.0% 15.4% 0.0% 0.0% 5.0% 5.4% 30.2% 0.0% 0.0% 5.2% 5.2% 35.4% 34.7% 0.0% 64.6% 100.0% 19.7% 0.0% 0.0% 0.0% 6.6% 37.6% 0.0% 2.1% 2.2% 4.4% 42.0% 32.6% 0.0% 58.0% 100.0% 19.6% 0.0% 0.0% 0.0% 6.5% 36.7% 0.0% 3.5% 2.4% 6.0% 42.7% 35.9% 0.0% 57.3% 100.0% 13.9% 0.0% 0.0% 0.0% 0.0% 35.6% 0.0% 9.5% 1.7% 11.2% 46.9% 35.0% 0.0% 53.1% 100.0% 11.8% 0.0% 0.0% 7.2% 0.9% 24.2% 0.0% 4.5% 4.7% 9.2% 33.4% 49.2% 0.0% 66.6% 100.0% 16.0% 0.0% 0.0% 2.1% 5.5% 27.6% 0.0% 3.2% 5.7% 8.9% 36.4% 49.4% 0.0% 63.6% 100.0% 12.6% 0.0% 0.0% 7.0% 1.0% 24.0% 0.0% 10.1% 0.0% 10.1% 34.2% 54.0% 0.0% 65.8% 100.0% 12.0% 0.0% 0.0% 5.6% 0.9% 21.9% 0.0% 11.0% 0.0% 11.0% 32.9% 57.5% 0.0% 67.1% 100.0% 11.3% 0.0% 0.0% 4.5% 0.9% 21.2% 0.0% 10.9% 0.0% 10.9% 32.1% 57.7% 0.0% 67.9% 100.0% 10.3% 0.0% 0.0% 5.4% 1.0% 20.3% 0.0% 11.1% 0.0% 11.1% 31.4% 58.7% 0.0% 68.6% 100.0% 12.0% 0.0% 0.0% 5.6% 0.9% 21.9% 0.0% 11.0% 0.0% 11.0% 32.9% 57.5% 0.0% 67.1% 100.0% 13.5% 0.0% 0.0% 5.7% 1.0% 23.9% 0.0% 11.1% 0.0% 11.1% 35.1% 55.9% 0.0% 64.9% 100.0% 13.5% 0.0% 0.0% 5.7% 1.0% 23.9% 0.0% 11.1% 0.0% 11.1% 35.1% 55.9% 0.0% 64.9% 100.0%

Cash Flows StatementCash Flows From Operating ActivitiesNet Income Depreciation & Amortization Deferred Taxes Other Net Cash From Operating Activities 23.9% 39.1% -3.8% 0.0% 100.0% 29.6% 16.1% 2.1% 0.0% 100.0% 52.7% 7.1% 2.1% 0.0% 100.0% 89.6% 10.1% 2.4% 7.3% 100.0% 63.9% 5.8% 1.4% 4.4% 100.0% 50.4% 4.9% -3.8% 5.4% 100.0% 81.1% 7.2% 10.2% 7.0% 100.0% 75.4% 5.5% 7.7% 4.7% 100.0% 69.1% 4.8% 7.6% 3.1% 100.0% 82.1% 6.4% 8.7% 3.4% 100.0% 78.3% 4.6% 9.2% 2.7% 100.0% 80.3% 5.5% 9.7% 3.1% 100.0% 82.1% 6.4% 8.7% 3.4% 100.0% 55.8% 6.8% 5.0% 2.3% 100.0%

TTM73.6% 7.3% 7.3% 3.3% 100.0%

Cash Flows From Investing ActivitiesCapital Expenditures Acquisitions Sale of Assets Net Cash From Investing Activities -19.8% 0.0% 0.0% 100.0% 11.8% 0.0% 0.0% 100.0% 10.2% 0.0% 0.0% 100.0% -184.0% 0.0% 0.0% 100.0% 30.3% 0.0% 0.0% 100.0% 14.6% 2.7% 0.0% 100.0% 7.0% 0.0% 0.0% 100.0% 15.3% 4.6% 0.0% 100.0% 18.4% 0.6% 0.0% 100.0% 19.5% 0.7% 0.0% 100.0% 9.3% 1.1% 0.0% 100.0% 13.4% 0.8% 0.0% 100.0% 19.5% 0.7% 0.0% 100.0% 18.2% 2.1% 0.0% 100.0% 23.4% 1.4% 0.0% 100.0%

Cash Flows From Financing ActivitiesIssuance of Capital Stock Repurchase of Capital Stock Net Issuance of Stock Issuance of Debt Repayment of Debt Net Issuance of Debt Dividends Paid Cash from Financing 196.3% -96.3% 100.0% 0.0% 0.0% 0.0% 0.0% 100.0% 336.2% 0.0% 336.2% 0.0% -236.2% -236.2% 0.0% 100.0% 100.0% 0.0% 100.0% 0.0% 0.0% 0.0% 0.0% 100.0% 98.1% -109.6% -11.4% 0.0% 0.0% 0.0% 0.0% 100.0% 49.4% -0.4% 49.0% 0.0% 0.0% 0.0% 0.0% 100.0% 43.3% -11.1% 32.2% 0.0% 0.0% 0.0% 0.0% 100.0% 71.6% 0.0% 71.6% 0.0% 0.0% 0.0% 0.0% 100.0% 72.6% 0.0% 72.6% 0.0% 0.0% 0.0% 0.0% 100.0% 57.5% 0.0% 57.5% 0.0% 0.0% 0.0% 0.0% 100.0% -39.2% 0.0% -39.2% 0.0% 0.0% 0.0% 146.5% 100.0% 99.5% 0.0% 99.5% 0.0% 0.0% 0.0% 0.0% 100.0% 133.6% 0.0% 133.6% 0.0% 0.0% 0.0% 0.0% 100.0% -39.2% 0.0% -39.2% 0.0% 0.0% 0.0% 146.5% 100.0% -1.7% 43.4% 41.7% 0.0% 0.0% 0.0% 55.4% 100.0% -10.4% 31.1% 20.8% 0.0% 0.0% 0.0% 79.5% 100.0%

Apple Inc. (AAPL)2/18/2013

Enter TickerColor Coding

Refresh

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

TTM

Financial Statistics & RatiosValuation RatiosP/E P/E (cash adjusted) EV/EBITDA EV/Free Cash Flow P/S P/BV P/Tang BV P/CF P/FCF ROE ROA ROIC CROIC GPA (Gross Profitability to Assets) Book to Market 116.70 53.89 37.36 33.77 1.37 2.01 2.06 38.00 67.87 1.6% 1.0% -17.1% -115.7% 25.1% 49.8% 53.47 33.88 19.85 12.46 1.80 2.94 2.99 30.66 19.67 5.4% 3.4% -267.6% -806.4% 28.1% 34.0% 32.40 26.22 19.16 15.41 3.11 5.80 5.88 28.19 19.04 17.9% 11.6% -625.6% -1172.7% 35.0% 17.2% 32.22 27.14 20.19 34.60 3.32 6.43 6.53 27.27 41.06 19.9% 11.6% 277.5% 250.5% 32.5% 15.6% 40.48 36.08 26.68 28.12 5.89 9.74 10.00 35.48 31.55 24.1% 13.8% 464.9% 677.3% 32.2% 10.3% 17.80 12.73 9.12 7.33 2.65 4.09 4.15 15.45 10.25 23.0% 12.2% 444.4% 848.2% 28.2% 24.4% 20.67 17.82 11.77 16.41 3.97 5.38 5.44 18.22 19.03 26.0% 17.3% 63.9% 71.4% 36.3% 18.6% 19.13 17.30 12.48 14.71 4.11 5.61 5.65 16.47 16.27 29.3% 18.6% 48.2% 57.1% 34.2% 17.8% 13.17 12.16 8.86 10.49 3.15 4.46 4.67 10.46 11.35 33.8% 22.3% 41.0% 48.2% 37.7% 22.4% 14.63 13.93 9.94 14.03 3.90 5.17 5.36 12.01 14.73 35.3% 23.7% 38.1% 38.2% 39.0% 19.4% 10.43 9.48 6.68 8.55 2.65 3.42 3.55 8.38 9.41 32.8% 21.3% 37.6% 42.3% 35.2% 29.2%

SolvencyQuick Ratio Current Ratio Total Debt/Equity Ratio Long Term Debt/Equity Ratio Short Term Debt/Equity Ratio2.47 2.50 0.61 0.00 0.07 2.59 2.63 0.59 0.00 0.00 2.91 2.96 0.55 0.00 0.00 2.20 2.24 0.72 0.00 0.00 2.32 2.36 0.74 0.00 0.00 2.43 2.46 0.88 0.00 0.00 2.70 2.74 0.50 0.00 0.00 1.96 2.01 0.57 0.00 0.00 1.58 1.61 0.52 0.00 0.00 1.48 1.50 0.49 0.00 0.00 1.51 1.54 0.54 0.00 0.00

Efficiency RatiosAsset Turnover Cash % of Revenue Receivables % of Revenue SG&A % of Revenue R&D % of Revenue0.91 54.7% 12.3% 19.5% 7.6% 1.03 35.9% 9.3% 17.2% 5.9% 1.21 25.1% 6.4% 13.3% 3.8% 1.12 33.1% 6.5% 12.6% 3.7% 0.95 39.0% 16.8% 12.3% 3.3% 0.82 36.6% 14.5% 11.6% 3.4% 0.90 12.3% 11.8% 9.7% 3.1% 0.87 17.3% 15.2% 8.5% 2.7% 0.93 9.1% 10.8% 7.0% 2.2% 0.89 6.9% 11.9% 6.4% 2.2% 0.84 9.8% 13.1% 6.2% 2.2%

Liquidity RatiosDays Sales Outstanding Days Inventory OutstandingDays Payable Outstanding Cash Conversion Cycle 45.0 4.5 93.6 -44.0 8.10 80.34 4.54 2.6% 0.9% 34.1 6.1 88.0 -47.7 10.75 76.69 4.76 1.9% 1.2% 23.4 6.1 65.7 -36.1 16.69 74.35 4.91 1.3% 1.2% 23.7 7.2 90.2 -59.4 17.99 63.07 5.79 1.6% 1.4% 61.3 8.0 114.4 -45.2 9.09 51.47 7.09 2.6% 1.4% 52.9 8.7 94.4 -32.9 7.44 49.90 7.31 1.4% 1.6% 43.0 6.5 79.6 -30.1 8.79 53.28 6.85 1.1% 1.1% 55.5 9.7 110.9 -45.7 8.71 52.51 6.95 0.7% 1.6% 39.5 4.4 82.9 -39.0 10.00 70.53 5.17 4.6% 0.7% 43.6 3.3 88.0 -41.1 10.29 112.12 3.26 3.6% 0.5% 47.7 5.6 100.7 -47.4 8.19 65.75 5.55 3.5% 0.9%

Receivables Turnover Inventory Turnover Average Age of Inventory (Days) Intangibles % of Book Value Inventory % of Revenue

Capital Structure RatiosLT-Debt as % of Invested Capital ST-Debt as % of Invested Capital LT-Debt as % of Total Debt ST-Debt as % of Total Debt Total Liabilities % of Total Assets Working Capital % of Price0.0% -281.5% 0.0% 11.7% 38.0% 41.6% 0.0% 0.0% 0.0% 0.0% 36.9% 29.3% 0.0% 0.0% 0.0% 0.0% 35.4% 15.7% 0.0% 0.0% 0.0% 0.0% 42.0% 12.5% 0.0% 0.0% 0.0% 0.0% 42.7% 8.9% 0.0% 0.0% 0.0% 0.0% 46.9% 23.9% 0.0% 0.0% 0.0% 0.0% 33.4% 11.8% 0.0% 0.0% 0.0% 0.0% 36.4% 7.8% 0.0% 0.0% 0.0% 0.0% 34.2% 5.0% 0.0% 0.0% 0.0% 0.0% 32.9% 3.1% 0.0% 0.0% 0.0% 0.0% 35.1% 5.8%

Quality ScoresPiostroski F Score Altman Z Score (Original) Altman Z Score (Revised) Beneish M Score (5 Variable) Beneish M Score (8 Variable)5.00 6.00 7.00 4.00 6.00 5.00 7.00 4.00 6.00 5.00 5.00

4.03 8.07 -

5.31 10.23 -2.92 -2.79

9.28 17.19 -2.71 -2.59

8.01 14.56 -1.91 -1.76

10.55 19.51 -1.72 -1.33

5.29 10.60 -2.80 -2.85

9.38 17.35 -0.94 -1.12

8.58 15.37 -2.04 -1.87

7.98 13.71 -2.46 -2.40

9.20 15.80 -2.53 -2.19

5.28 9.88 -2.81 -2.75

Apple Inc. (AAPL)2/18/2013 Enter TickerRefresh CLEAR

Earnings Quality Check with Accrual AnalysisEarnings growth due to accrual growth is not sustainable. This is like cookie jar accounting where a company borrows earnings from the future to make earnings look good today. Balance sheet accrual can indicate whether capital is being used properly. A company with high accruals can come from acquiring or merging with companies which expands the asset base. Low balance sheet accrual companies tend to shrink their balance sheet through spin offs, share repurchases or large write offs. In these situations, it is usually removing bad performing assets or returning money to shareholders which is always a good use of capital. High accruals indicate that the company has expanded its asset base rapidly. Companies with high balance sheet accruals tend to have higher sales growth than low balance sheet accrual companies. High balance sheet accruals also have a higher ROE. Remember that maintaining a high sales growth or high ROE is difficult unless you have an entrenched moat. Such companies revert to the mean and disappoint.. Companies with low balance sheet accruals tend to have below average returns on equity. Analysts expect the company to lag. Color Coding: Green = safe zone, Yellow = ratio is getting into warning zone, Red = Danger zone. Ratios are too high or low. Requires check. More reading: http://tinyurl.com/6p394ap http://tinyurl.com/7ucpoe2 2003 Balance Sheet Accrual Ratio Cash Flow Accrual Ratio Sloan Accrual Ratio Earnings Stock Price Total Assets Cash & Equivalent Total Liabilities Short Term Debt Long Term Debt Net Operating Assets (NOA) Net Income CFO CFI 2004 2005 2006 2007 2008 2009 2010 2011 2012 TTM/MRQ

-15.4%$ $ $ $ $ $ $ $ $ $ $ 0.10 11.7 6,815.0 3,396.0 2,592.0 304.0 1,131.0 69.0 289.0 828.0 $ $ $ $ $ $ $ $ $ $ $ $ $

60.3% 51.3% 10.3%0.36 19.3 8,050.0 2,969.0 2,974.0 2,107.0 $ $ $ $ $ $ $ $

61.4% 44.6% 11.7%1.56 50.6 11,551.0 3,491.0 4,085.0 3,975.0 $ $ $ $ $ $ $ $

-10.1% -15.5% -3.4%2.27 73.1 17,205.0 6,392.0 7,221.0 3,592.0 1,989.0 2,220.0 357.0 $ $

36.2% 29.1% 5.0%3.93 159.1 $ $ $ $ $ $ $ $

55.5% 47.8% 8.7%5.36 95.4 39,572.0 11,875.0 18,542.0 9,155.0 $ $

96.9% 87.3% 32.7%9.08 187.7 $ $ $ $ $ $ $ $

32.3% 29.5% 12.3%15.15 289.8 75,183.0 11,261.0 27,392.0 36,530.0 $ $

58.6% 55.8% 24.8%27.68 364.4 $ $

46.7% 44.9% 22.2%44.15 645.9 $ $

3.4% 27.1% 15.1%44.10 460.2

$ 25,347.0 $ 9,352.0 $ 10,815.0 $ $ $ 5,180.0

$ 47,501.0 $ 5,263.0 $ 15,861.0 $ $ $ 26,377.0

$ 116,371.0 $ 9,815.0 $ 39,756.0 $ $ $ 66,800.0

$ 176,064.0 $ 10,746.0 $ 57,854.0 $ $ $ 107,464.0

$ 196,088.0 $ 16,154.0 $ 68,742.0 $ $ $ 111,192.0

276.0 $ 934.0 $ (1,488.0) $ 976.0 830.0 $ $

1,335.0 $ 2,535.0 $ (2,556.0) $ 1,868.0 1,356.0 $ $

$ 3,496.0 $ $ 5,470.0 $ $ (3,249.0) $ 1,588.0 1,275.0 $ $

4,834.0 $ 8,235.0 $ 14,013.0 $ 25,922.0 $ 41,733.0 $ 41,747.0 9,596.0 $ 10,159.0 $ 18,595.0 $ 37,529.0 $ 50,856.0 $ 56,728.0 (8,189.0) $ (17,434.0) $ (13,854.0) $ (40,419.0) $ (48,227.0) $ (44,620.0) 3,975.0 3,427.0 $ 17,222.0 $ 15,510.0 $ 10,153.0 $ 9,272.0 $ 30,270.0 $ 28,812.0 $ 40,664.0 $ 39,104.0 $ 3,728.0 $ 29,639.0

Balance Sheet Aggregate Accrual $ Cash Flow Aggregate Accrual $

(383.0) $ (588.0) $

Piotroski Score2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 TTM

Piotroski F ScoresPiotroski 1: Net Income Piotroski 2: Operating Cash Flow Piotroski 3: Return on Assets Piotroski 4: Quality of Earnings Piotroski 5: LT Debt vs Assets Piotroski 6: Current Ratio Piotroski 7: Shares Outstanding Piotroski 8: Gross Margin Piotroski 9: Asset Turnover

51 1 1 1 0 1 0 0 0

61 1 1 1 0 1 0 0 1

71 1 1 1 0 1 0 1 1

41 1 1 1 0 0 0 0 0

61 1 1 1 0 1 0 1 0

51 1 0 1 0 1 0 1 0

71 1 1 1 0 1 0 1 1

41 1 1 1 0 0 0 0 0

61 1 1 1 0 0 0 1 1

51 1 1 1 0 0 0 1 0

51 1 0 1 0 1 1 0 0

Altman Z ScoreAnnualWorking Capital Total Assets Total Liabilities Retained Earnings EBITDA Market Value of Equity Net Sales Normal Altman Z Score Revised Altman Z Score $ $ $ $ $ $ $ 2003 3,530.0 6,815.0 2,592.0 2,394.0 92.0 8,483.3 6,207.0 4.03 8.07 $ $ $ $ $ $ $ 2004 4,375.0 8,050.0 2,974.0 2,670.0 383.0 14,911.5 8,279.0 5.31 10.23 $ $ $ $ $ $ $ 2005 6,816.0 11,551.0 4,085.0 4,005.0 1,815.0 43,310.2 13,931.0 9.28 17.19 $ $ $ $ $ $ $ 2006 8,038.0 17,205.0 7,221.0 5,607.0 2,818.0 64,182.3 19,315.0 8.01 14.56 2007 $ 12,657.0 $ 25,347.0 $ 10,815.0 $ 9,101.0 $ 5,008.0 $ 141,486.4 $ 24,006.0 10.55 19.51 $ $ $ $ $ $ $ 2008 20,598.0 39,572.0 18,542.0 13,845.0 6,895.0 86,055.0 32,479.0 5.29 10.60 2009 $ 20,049.0 $ 47,501.0 $ 15,861.0 $ 23,353.0 $ 12,066.0 $ 170,244.8 $ 42,905.0 9.38 17.35 2010 $ 20,956.0 $ 75,183.0 $ 27,392.0 $ 37,169.0 $ 18,540.0 $ 267,972.3 $ 65,225.0 8.58 15.37 2011 $ 17,018.0 $ 116,371.0 $ 39,756.0 $ 62,841.0 $ 34,205.0 $ 341,332.2 $ 108,249.0 7.98 13.71 2012 $ 19,111.0 $ 176,064.0 $ 57,854.0 $ 101,289.0 $ 55,763.0 $ 610,567.0 $ 156,508.0 9.20 15.80

MRQQ1 $ 25,469.0 $ 196,088.0 $ 68,742.0 $ 109,567.0 $ 17,672.0 $ 432,117.9 $ 54,512.0 5.28 9.88

MRQ Edit

Altman Z ScoreX1 X2 X3 X4 X5 0.11 0.58 0.32 10.55 0.89 0.13 0.56 0.09 6.29 0.28 Annual MRQ

Revised Altman Z ScoreAnnual MRQ

9.20

5.28

15.80

9.88

The Beneish Model - M Score VariablesDSRI = Days' Sales in Receivables Index. Measured as the ratio of days' sales in receivables in year t to year t-1. A large increase in DSR could be indicative of revenue inflation. GMI = Gross Margin Index. Measured as the ratio of gross margin in year t-1 to gross margin in year t. Gross margin has deteriorated when this index is above 1. A firm with poorer prospects is more likely to manipulate earnings. AQI = Asset Quality Index. Asset quality is measured as the ratio of non-current assets other than plant, property and equipment to total assets.AQI is the ratio of asset quality in year t to year t-1. SGI = Sales Growth Index. Ratio of sales in year t to sales in year t-1. Sales growth is not itself a measure of manipulation. However, growth companies are likely to find themselves under pressure to manipulate in order to keep up appearances. DEPI = Depreciation Index. Measured as the ratio of the rate of depreciation in year t-1 to the corresponding rate in year t. DEPI greater than 1 indicates that assets are being depreciated at a slower rate. This suggests that the firm might be revising useful asset life assumptions upwards, or adopting a new method that is income friendly. SGAI = Sales, General and Administrative expenses Index. The ratio of SGA expenses in year t relative to year t -1. LVGI = Leverage Index. The ratio of total debt to total assets in year t relative to yeat t-1. An LVGI >1 indicates an increase in leverage TATA - Total Accruals to Total Assets. Total accruals calculated as the change in working capital accounts other than cash less depreciation.

The Beneish M Score FormulaThe eight variables are then weighted together according to the following: M = -4.84 + 0.92*DSRI + 0.528*GMI + 0.404*AQI + 0.892*SGI + 0.115*DEPI - 0.172*SGAI + 4.679*TATA - 0.327*LVGI A score greater than -2.22 indicates a strong likelihood of a firm being a manipulator. In his out of sample tests, Beneish found that he could correctly identify 76% of manipulators, whilst only incorrectly identifying 17.5% of non-manipulators.

The 5 Variable Version of the Beneish ModelThe five variable version excludes SGAI, DEPI and LEVI which were not significant in the original Beneish model. M = -6.065 + 0.823*DSRI + 0.906*GMI + 0.593*AQI + 0.717*SGI + 0.107*DEPI A score greater than -2.22 indicates a strong likelihood of a firm being a manipulator. 2003 M Score - 5 Variable M Score - 8 Variable DSRI GMI AQI SGI DEPI SGAI TATA LVGI 2004 2005 2006 2007 2008 2009 2010 2011 2012 TTM

0.76 1.01 0.94 1.33 0.83 0.88 -0.08 0.96

-2.92 -2.790.69 0.94 1.05 1.68 0.97 0.78 -0.10 0.91

-2.71 -2.591.01 1.00 2.19 1.39 1.20 0.94 -0.01 1.25

-1.91 -1.762.59 0.85 0.75 1.24 1.01 0.98 -0.08 0.98

-1.72 -1.330.86 0.99 1.00 1.35 0.91 0.94 -0.12 0.97

-2.80 -2.850.81 0.85 4.46 1.32 0.81 0.84 -0.04 0.68

-0.94 -1.121.29 1.02 1.40 1.52 1.12 0.87 -0.06 1.14

-2.04 -1.870.71 0.97 1.43 1.66 0.94 0.83 -0.10 0.87

-2.46 -2.401.10 0.92 1.07 1.45 1.08 0.91 -0.05 0.91

-2.53 -2.191.09 1.05 0.94 1.05 0.83 0.97 -0.08 1.09

-2.81 -2.750.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

DuPont AnalysisFull tutorial, example and discussion of how the DuPont analysis is used is provided on the blog. http://www.oldschoolvalue.com/blog/accounting/dupont-analysis-model-spreadsheet/ 2003 6,207.0 92.0 92.0 24.0 69.0 6,815.0 4,223.0 2004 8,279.0 383.0 383.0 107.0 276.0 8,050.0 5,076.0 2005 13,931.0 1,815.0 1,815.0 480.0 1,335.0 11,551.0 7,466.0 2006 19,315.0 2,818.0 2,818.0 829.0 1,989.0 17,205.0 9,984.0 2007 $ 24,006.0 $ 5,008.0 $ 5,008.0 $ $ 1,512.0 $ 3,496.0 $ 25,347.0 $ 14,532.0 2008 32,479.0 6,895.0 6,895.0 2,061.0 4,834.0 39,572.0 21,030.0 2009 42,905.0 12,066.0 12,066.0 3,831.0 8,235.0 47,501.0 31,640.0 2010 65,225.0 18,540.0 18,540.0 4,527.0 14,013.0 75,183.0 47,791.0 2011 $ 108,249.0 $ 34,205.0 $ 34,205.0 $ $ 8,283.0 $ 25,922.0 $ 116,371.0 $ 76,615.0 2012 $ 156,508.0 $ 55,763.0 $ 55,763.0 $ $ 14,030.0 $ 41,733.0 $ 176,064.0 $ 118,210.0 TTM $ 164,687.0 $ 55,958.0 $ 55,958.0 $ $ 14,211.0 $ 41,747.0 $ 196,088.0 $ 127,346.0

Revenue EBIT EBT Interest Expense Income Tax Net Income Total Assets Shareholders Equity

$ $ $ $ $ $ $ $

$ $ $ $ $ $ $ $

$ $ $ $ $ $ $ $

$ $ $ $ $ $ $ $

$ $ $ $ $ $ $ $

$ $ $ $ $ $ $ $

$ $ $ $ $ $ $ $

Three-Step DuPont Model:Net Profit Margin (Net Income Sales) 1.1% Asset Turnover (Sales Total Assets) 0.91 Equity Multiplier (Total Assets Shareholders Equity) 1.61 3.3% 1.03 1.59 9.6% 1.21 1.55 10.3% 1.12 1.72 14.6% 0.95 1.74 14.9% 0.82 1.88 19.2% 0.90 1.50 21.5% 0.87 1.57 23.9% 0.93 1.52 26.7% 0.89 1.49 25.3% 0.84 1.54

Return on Equity Five-Step DuPont Model:

1.6%

5.4%

17.9%

19.9%

24.1%

23.0%

26.0%

29.3%

33.8%

35.3%

32.8%

Tax Burden (Net Income EBT) 0.75 Interest Burden (EBT EBIT) 1.00 Operating Income Margin (EBIT Sales) 1.5% Asset Turnover (Sales Total Assets) 0.91 Equity Multiplier (Total Assets Shareholders Equity) 1.61

0.72 1.00 4.6% 1.03 1.59

0.74 1.00 13.0% 1.21 1.55

0.71 1.00 14.6% 1.12 1.72

0.70 1.00 20.9% 0.95 1.74

0.70 1.00 21.2% 0.82 1.88

0.68 1.00 28.1% 0.90 1.50

0.76 1.00 28.4% 0.87 1.57

0.76 1.00 31.6% 0.93 1.52

0.75 1.00 35.6% 0.89 1.49

0.75 1.00 34.0% 0.84 1.54

Return on Equity30% 25%

1.6%

5.4%2.0 1.8 1.6

17.9%

19.9%

24.1%40% 35% 30% 25% 20% 15%

23.0%

26.0%

29.3%

33.8%2.0 1.8 1.6 1.4 1.2 1.0 0.8

35.3%

32.8%

Net Profit Margin (Net Income Sales)Asset Turnover (Sales Total Assets) Equity Multiplier (Total Assets Shareholders Equity) Return on Equity

Operating Income Margin (EBIT Sales) Return on Equity

20% 15%10% 5% 0% 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 TTM

1.4 1.2 1.00.8 0.6 0.4 0.2 0.0

Tax Burden (Net Income EBT) Interest Burden (EBT EBIT)

10% 5%0% 1 2 3 4 5 6 7 8 9 10 11

0.6 0.4 0.20.0

Asset Turnover (Sales Total Assets)

Apple Inc. (AAPL)2/18/2013 Enter Ticker Free Cash FlowRefreshFigures in Millions except per share values

Owner Earnings

2003 2004 $125.0 $758.0 % Change 506.4%

2005 $2,275.0 200.1%

2006 $1,563.0 -31.3%

2007 $4,484.0 186.9%

2008 $8,397.0 87.3%

2009 2010 2011 2012 TTM $8,946.0 $16,474.0 $30,077.0 $41,454.0 $46,300.0 6.5% 84.1% 82.6% 37.8% 11.7%

2003 2004 -$108.0 -$198.0 % Change -83.3%

2005 $789.0 498.5%

2006 $1,941.0 146.0%

2007 $1,744.0 -10.1%

2008 $505.0 -71.0%

2009 2010 2011 2012 TTM $9,052.0 $12,586.0 $15,695.0 $37,647.0 $32,484.0 1692.5% 39.0% 24.7% 139.9% -13.7%

Stock Price

Diluted EPS

2003 $11.7 % Change

2004 $19.3 65.0%

2005 $50.6 162.6%

2006 $73.1 44.7%

2007 $159.1 117.5%

2008 $95.4 -40.0%

2009 $187.7 96.8%

2010 $289.8 54.4%

2011 $364.4 25.8%

2012 $645.9 77.2%

TTM $460.2 -28.8%

2003 2004 $0.10 $0.36 % Change 260.0%

2005 $1.56 333.3%

2006 $2.27 45.5%

2007 $3.93 73.1%

2008 $5.36 36.4%

2009 $9.08 69.4%

2010 $15.15 66.9%

2011 $27.68 82.7%

2012 $44.15 59.5%

TTM $44.10 -0.1%

FCF / Sales

Price / FCF

2003 2004 2.0% 9.2% % Change 354.6%

2005 16.3% 78.4%

2006 8.1% -50.4%

2007 18.7% 130.8%

2008 25.9% 38.4%

2009 20.9% -19.4%

2010 25.3% 21.1%

2011 27.8% 10.0%

2012 26.5% -4.7%

TTM 28.1% 6.1%

2003 67.9 % Change

2004 19.7 -71.0%

2005 19.0 -3.2%

2006 41.1 115.7%

2007 31.6 -23.2%

2008 10.2 -67.5%

2009 19.0 85.7%

2010 16.3 -14.5%

2011 11.3 -30.2%

2012 14.7 29.8%

TTM 9.4 -36.1%

Cash Return on Invested Capital (CROIC)

FCF Yield

2003 2004 2005 -115.7% -806.4% -1172.7% % Change -596.7% -45.4%

2006 250.5% 121.4%

2007 677.3% 170.4%

2008 848.2% 25.2%

2009 71.4% -91.6%

2010 57.1% -20.0%

2011 48.2% -15.7%

2012 38.2% -20.6%

TTM 42.3% 10.7%

2003 2004 1.5% 5.1% % Change 245.0%

2005 5.3% 3.3%

2006 2.4% -53.6%

2007 3.2% 30.1%

2008 9.8% 207.9%

2009 5.3% -46.1%

2010 6.1% 17.0%

2011 8.8% 43.3%

2012 6.8% -22.9%

TTM 10.6% 56.5%

Magic Formula Investing -- Earnings Yield

Magic Formula Investing -- Return on Capital

2003 2.7% % Change

2004 5.0% 88.2%

2005 5.2% 3.6%

2006 5.0% -5.1%

2007 3.7% -24.3%

2008 11.0% 192.5%

2009 8.5% -22.5%

2010 8.0% -5.7%

2011 11.3% 40.9%

2012 10.1% -10.8%

TTM 15.0% 48.7%

2003 2004 2.2% 7.5% % Change 244.0%

2005 23.8% 215.5%

2006 30.2% 27.2%

2007 34.6% 14.3%

2008 29.9% -13.5%

2009 52.5% 75.4%

2010 72.1% 37.4%

2011 138.0% 91.4%

2012 161.3% 17.0%

TTM 136.8% -15.2%

Gross Margin

Net Profit Margin

2003 27.5% % Change

2004 27.3% -0.8%

2005 29.0% 6.4%

2006 29.0% -0.1%

2007 34.0% 17.2%

2008 34.3% 1.0%

2009 40.1% 17.0%

2010 39.4% -1.9%

2011 40.5% 2.8%

2012 43.9% 8.4%

TTM 41.9% -4.5%

2003 2004 1.1% 3.3% % Change 199.9%

2005 9.6% 187.5%

2006 10.3% 7.5%

2007 14.6% 41.4%

2008 14.9% 2.2%

2009 19.2% 29.0%

2010 21.5% 11.9%

2011 23.9% 11.5%

2012 26.7% 11.4%

TTM 25.3% -4.9%

Piotroski F score

Original Altman Z Score

2003 5.0 % Change

2004 6.0 20.0%

2005 7.0 16.7%

2006 4.0 -42.9%

2007 6.0 50.0%

2008 5.0 -16.7%

2009 7.0 40.0%

2010 4.0 -42.9%

2011 6.0 50.0%

2012 5.0 -16.7%

TTM 5.0 0.0%

2003 4.0 % Change

2004 5.3 31.7%

2005 9.3 74.8%

2006 8.0 -13.6%

2007 10.5 31.7%

2008 5.3 -49.8%

2009 9.4 77.1%

2010 8.6 -8.5%

2011 8.0 -6.9%

2012 9.2 15.3%

TTM 5.3 -42.6%

Beneish M Score - 8 Variable Version

Tax Rate

2003 2004 -2.8 % Change #DIV/0!

2005 -2.6 7.3%

2006 -1.8 32.2%

2007 -1.3 24.2%

2008 -2.9 -114.0%

2009 -1.1 60.6%

2010 -1.9 -66.8%

2011 -2.4 -28.2%

2012 -2.2 8.8%

TTM -2.7 -25.5%

2003 26.1% % Change

2004 27.9% 7.1%

2005 26.4% -5.3%

2006 29.4% 11.2%

2007 30.2% 2.6%

2008 29.9% -1.0%

2009 31.8% 6.2%

2010 24.4% -23.1%

2011 24.2% -0.8%

2012 25.2% 3.9%

TTM 25.4% 0.9%

Debt to Equity

FCF to Total Debt

2003 61.4% % Change

2004 58.6% -4.5%

2005 54.7% -6.6%

2006 72.3% 32.2%

2007 74.4% 2.9%

2008 88.2% 18.5%

2009 50.1% -43.1%

2010 57.3% 14.3%

2011 51.9% -9.5%

2012 48.9% -5.7%

TTM 54.0% 10.3%

2003 2004 4.8% 25.5% % Change 428.5%

2005 55.7% 118.5%

2006 21.6% -61.1%

2007 41.5% 91.5%

2008 45.3% 9.2%

2009 56.4% 24.5%

2010 60.1% 6.6%

2011 75.7% 25.8%

2012 71.7% -5.3%

TTM 67.4% -6.0%

FCF to Short Term Debt

FCF to Long Term Debt

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 TTM 41.1% % Change #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE!

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

TTM

% Change #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE!

Apple Inc. (AAPL)2/18/2013 Enter TickerUpdate CLEAREnter Competitor Tickers

AAPLCompany 2 3 Sector Industry 4 5 Country 68 Earnings Date 65 6 66 67 60 61 55 56 57 58 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 Price Market Cap Change Volume Change from Open Gap 50-Day High 50-Day Low 52-Week High 52-Week Low P/E Forward P/E PEG P/S P/B P/Cash P/Free Cash Flow Dividend Yield Payout Ratio EPS (ttm) EPS growth this year EPS growth next year EPS growth past 5 years EPS growth next 5 years Sales growth past 5 years EPS growth quarter over quarter Sales growth quarter over quarter Apple Inc. Technology Personal Computers USA 23-Jan-2013 $460.16 $432,117.85 -1.38% 13,961,008 -1.90% 0.53% -20.45% 6.40% -34.06% 6.40% 10.43 9.04 0.55 2.62 3.39 10.85 9.86 2.30% 11.98% $44.10 59.51% 13.72% 62.22% 18.98% 44.81% -0.49% 17.65% 24.94% 38.41% 32.96% 1.54 1.51 0.00 0.00 41.91% 33.46% 25.35% 939.06 938.76 0.03% 3.68% 64.11% -4.13% 2.01% 0.9 -3.12% -8.55% -13.79% -26.39% -8.34% -8.34% 1.04 13.49 2.34% 2.58% -1.36% -8.03% -20.07% 43.21 2.00 21,597.98 0.65

MSFT Microsoft Corporation Technology Application Software USA 24-Jan-2013 $28.01 $234,618.76 -0.11% 49,516,760 -0.14% 0.04% -0.78% 6.66% -13.15% 6.66% 15.39 8.86 1.84 3.22 3.23 3.43 11.36 3.28% 46.66% $1.82 -25.91% 10.88% 7.01% 8.38% 7.60% -3.49% 2.73% 12.83% 22.62% 16.84% 2.81 2.76 0.16 0.20 75.35% 26.76% 21.20% 8,376.25 7,597.51 5.10% -8.28% 66.93% -1.20% 1.05% 1.6 1.67% 3.59% 4.36% -6.26% -5.40% -5.40% 0.94 0.39 0.99% 1.52% 1.33% 2.85% -2.76% 58.85 2.00 51,124.31 0.97

DELL

HPQ HewlettPackard Technology Diversified Computer Systems USA 21-Feb-2013 $16.79 $32,786.17 -1.41% 15,324,705 -1.87% 0.47% -3.78% 31.32% -42.44% 49.33% 0.00 4.81 0.00 0.27 1.47 2.90 5.60 3.16% 0.00% ($6.45) -292.77% 5.12% 5.52% 0.00% 2.91% -3027.70% -6.73% -10.62% -41.43% -18.02% 1.09 0.95 0.97 1.27 22.95% -9.19% -10.51% 1,952.72 1,951.35 0.02% 331.33% 79.08% -0.09% 4.13% 2.7 -0.47% -2.44% 28.96% -11.77% -40.63% -40.63% 1.12 0.48 2.12% 2.52% -0.09% 7.66% -3.01% 56.60 3.20 29,973.36 0.51

BBRY Research In Motion Limited Technology Diversified Communication Services Canada 24-Mar-2011 $14.15 $7,419.48 -6.07% 92,531,616 -7.48% 1.53% -22.73% 33.66% -22.73% 127.57% 0.00 0.00 0.00 0.59 0.78 2.72 8.99 0.00% 0.00% ($1.62) -64.95% 63.60% 14.99% 5.00% 43.43% -94.72% -47.21% -6.35% -8.67% -8.45% 2.23 2.08 0.00 0.00 30.68% -10.85% -6.73% 524.16 425.06 15.01% 0.00% 60.57% 0.16% 31.79% 2.2 -14.16% -3.97% 66.73% 87.24% -2.85% -2.85% 1.64 1.38 10.29% 8.93% -9.67% 2.46% 41.50% 45.76 3.40 62,980.89 1.47

Dell Inc. Technology Personal Computers USA 19-Feb-2013 $13.81 $24,010.07 0.73% 20,541,424 0.80% -0.07% -2.54% 39.49% -23.56% 60.18% 9.39 8.32 0.97 0.41 2.36 2.13 7.67 2.32% 5.33% $1.47 39.82% -2.92% 10.63% 9.67% 1.57% -44.18% -10.70% 5.96% 27.66% 11.47% 1.18 1.11 0.52 0.89 21.25% 5.53% 4.44% 1,738.60 1,490.73 0.06% 25.21% 68.56% 3.08% 2.76% 1.1 1.32% 9.52% 45.37% 15.08% -22.24% -22.24% 1.41 0.36 1.41% 2.21% 3.49% 17.35% 20.54% 71.00 3.10 38,353.08 0.54

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max max max max max max max max max max max max min min max max max

32 Return on Assets 33 Return on Equity 34 Return on Investment 35 36 37 38 Current Ratio Quick Ratio LT Debt/Equity Total Debt/Equity

39 Gross Margin 40 Operating Margin 41 Profit Margin 24 25 26 27 28 29 30 31 42 43 44 45 46 46 48 49 50 51 52 53 54 59 62 63 64 Shares Outstanding Shares Float Insider Ownership Insider Transactions Institutional Ownership Institutional Transactions Float Short Short Ratio Performance (Week) Performance (Month) Performance (Quarter) Performance (Half Year) Performance (Year) Performance (Year) Beta Average True Range Volatility (Week) Volatility (Month) 20-Day Simple Moving Average 50-Day Simple Moving Average 200-Day Simple Moving Average Relative Strength Index (14) Analyst Recom Average Volume Relative Volume

max

min

Apple Inc. (AAPL)2/18/2013

Shares Out. 939.06Select input with each list or enter your own value

M.O.S 50%

Growth 0.7% 0.7%

Discount % 9.0%

Terminal % 2%

Select FCF FCF

Adjust 2012 FCF $40,000.0

939.06

Enter TickerFiscal Year Cash Flow DataCash from Operations Capex Cash Flow Free Cash Flow

Refresh

CLEAR

Current Price

Fair Value

Buy Under

Actual M.O.S

52 Wk High

52 Wk Low

$460.162004 $934.0 ($176.0) $486.4 $758.0 506.4%

$460.062005 $2,535.0 ($260.0) $1,536.5 $2,275.0 200.1%

$230.032006 $2,220.0 ($657.0) $2,353.9 $1,563.0 -31.3%

0%2007 $5,470.0 ($986.0) $3,987.5 $4,484.0 186.9%

$705.072008 $9,596.0 ($1,199.0) $5,571.5 $8,397.0 87.3%

$435.002009 $10,159.0 ($1,213.0) $9,341.3 $8,946.0 6.5% 2010 $18,595.0 ($2,121.0) $16,275.2 $16,474.0 84.1% 2011 $37,529.0 ($7,452.0) $32,629.7 $30,077.0 82.6% 2012 $50,856.0 ($9,402.0) $50,831.3 TTM $56,728.0 ($10,428.0) $51,986.4 $46,300.0 15.8%

Trend

2003 $289.0 ($164.0) $223.2 $125.0 YOY% Change

$40,000.033.0%

MarginsGross Margin Operating Margin Net Margin 27.5% 0.4% 1.1% 27.3% 4.2% 3.3% 29.0% 11.8% 9.6% 29.0% 12.7% 10.3% 34.0% 18.4% 14.6% 34.3% 19.3% 14.9% 40.1% 27.4% 19.2% 39.4% 28.2% 21.5% 40.5% 31.2% 23.9% 43.9% 35.3% 26.7% 41.9% 33.5% 25.3%

EPS & TaxDiluted EPS Tax Rate $0.10 26.1% $0.36 27.9% $1.56 26.4% $2.27 29.4% $3.93 30.2% $5.36 29.9% $9.08 31.8% $15.15 24.4% $27.68 24.2% $44.15 25.2% $44.10 25.4%

Efficiency & ProfitabilityCROIC FCF/Sales Inventory Turnover Return On Assets (ROA) Retun On Equity (ROE) -115.7% 2.0% 80.3 1.0% 1.6% -806.4% 9.2% 76.7 3.4% 5.4% -1172.7% 16.3% 74.3 11.6% 17.9% 250.5% 8.1% 63.1 11.6% 19.9% 677.3% 18.7% 51.5 13.8% 24.1% 848.2% 25.9% 49.9 12.2% 23.0% 71.4% 20.9% 53.3 17.3% 26.0% 57.1% 25.3% 52.5 18.6% 29.3% 48.2% 27.8% 70.5 22.3% 33.8% 38.2% 26.5% 112.1 23.7% 35.3% 42.3% 28.1% 65.8 21.3% 32.8%

Debt RelatedDebt to Equity Capitalization Ratio FCF to Total Debt FCF to Short Term Debt FCF to Long Term Debt 61.4% 0.0% 4.8% 41.1% 58.6% 0.0% 25.5% 54.7% 0.0% 55.7% 72.3% 0.0% 21.6% 74.4% 0.0% 41.5% 88.2% 0.0% 45.3% 50.1% 0.0% 56.4% 57.3% 0.0% 60.1% 51.9% 0.0% 75.7% 48.9% 0.0% 71.7% 54.0% 0.0% 67.4%

5 Year Multi-Year PerformanceTang Shareholder Equity Free Cash Flow CROIC FCF/Sales ROA ROE Gross Margin Operating Margin Net Margin Revenue Growth Earnings Growth Cash from Ops Growth 2007-2011 50.8% 60.9% 71.4% 25.3% 17.3% 26.0% 39.4% 27.4% 19.2% 45.7% 62.9% 61.8% 2008-2012 53.1% 49.1% 57.1% 25.9% 18.6% 29.3% 40.1% 28.2% 21.5% 48.2% 69.4% 51.7% 2007-2010 49.7% 54.3% 374.4% 23.1% 15.6% 25.0% 36.8% 23.3% 17.0% 39.5% 56.8% 50.4% 2008-2011 52.2% 53.0% 64.3% 25.6% 18.0% 27.7% 39.8% 27.8% 20.3% 49.4% 72.8% 57.6% 2009-2012 53.9% 66.7% 52.6% 25.9% 20.5% 31.6% 40.3% 29.7% 22.7% 53.9% 69.4% 71.1% 2007-2009 48.7% 41.2% 677.3% 20.9% 13.8% 24.1% 34.3% 19.3% 14.9% 33.7% 52.0% 36.3% 2008-2010 51.2% 40.1% 71.4% 25.3% 17.3% 26.0% 39.4% 27.4% 19.2% 41.7% 68.1% 39.2% 2009-2011 52.8% 83.4% 57.1% 25.3% 18.6% 29.3% 40.1% 28.2% 21.5% 58.8% 74.6% 92.2% 2010-2012 55.0% 58.6% 48.2% 26.5% 22.3% 33.8% 40.5% 31.2% 23.9% 54.9% 70.7% 65.4% Median 52.2% 54.3% 64.3% 25.3% 18.0% 27.7% 39.8% 27.8% 20.3% 48.2% 69.4% 57.6%

10 Year Multi-Year PerformanceTang Shareholder Equity Free Cash Flow CROIC FCF/Sales ROA ROE Gross Margin Operating Margin Net Margin Revenue Growth Earnings Growth Cash from Ops Growth 2003-2010 41.8% 100.8% 64.3% 17.5% 11.9% 21.5% 31.5% 15.5% 12.4% 39.9% 104.9% 81.3% 2004-2011 46.8% 69.2% 64.3% 19.8% 13.0% 23.5% 34.1% 18.8% 14.7% 44.4% 86.0% 69.5% 2005-2012 47.9% 51.4% 64.3% 23.1% 15.6% 25.0% 36.8% 23.3% 17.0% 41.3% 61.2% 53.5% 2003-2008 38.2% 132.0% 67.4% 12.7% 11.6% 18.9% 29.0% 12.3% 9.9% 39.2% 121.7% 101.5% 2004-2009 44.4% 63.8% 160.9% 17.5% 11.9% 21.5% 31.5% 15.5% 12.4% 39.0% 90.7% 61.2% 2005-2010 45.1% 48.6% 160.9% 19.8% 13.0% 23.5% 34.1% 18.8% 14.7% 36.2% 57.6% 49.0% 2006-2011 49.4% 80.7% 160.9% 23.1% 15.6% 25.0% 36.8% 23.3% 17.0% 41.2% 64.9% 76.0% 2007-2012 51.8% 56.0% 64.3% 25.6% 18.0% 27.7% 39.8% 27.8% 20.3% 45.5% 62.2% 56.2% 2003-2012 44.6% 90.6% 57.1% 19.8% 13.0% 23.5% 34.1% 18.8% 14.7% 43.1% 96.7% 77.6% Median 45.1% 69.2% 64.3% 19.8% 13.0% 23.5% 34.1% 18.8% 14.7% 41.2% 86.0% 69.5%

Projection of future Free Cash Flow2013 Yearly Growth Input Field 1% Terminal Growth 2% $40,280.00 2023 $ 43,453.52 2014 $40,561.96 2024 $ 44,322.59 2015 $40,845.89 2025 45,209.04 2016 $41,103.22 2026 46,113.22 2017 $41,362.17 2027 47,035.49 2018 $41,622.75 2028 47,976.20 2019 $41,884.98 2029 48,935.72 2020 $42,122.47 2030 49,914.43 2021 $42,361.30 2031 50,912.72 2022 $42,601.49 2032 51,930.98

$

$

$

$

$

$

$

$

Calculation$ MAX(0,Current Liabilities-Current Assets) $ Excess Cash $ Adding some Intangibles $ Interest Bearing Debt $ Present Value $ Shares Outstanding Per Share Value $ Desired Margin of Safety Purchase Price $ Current Price $ Margin of Safety Total Cash 39,820.00 39,820.00 432,023.76 939.06 460.06 50% 230.03 460.16 0%

Sensitivity Matrix: Growth vs Discount RateDiscount Rates-3% $ -1% $ 7% 429.98 $ 476.33 $ 528.58 587.46 653.76 $ $ $ 8% 402.12 $ 444.15 $ 491.45 544.66 604.49

9%377.38 415.60 $ $ $ $ $

10% 355.33 $ 390.20 $ 429.32 473.19 522.38 $ $ $

11% 335.60 367.52 403.26 443.27 488.07

Growth Rates

1%

$ 3% $ 5% $

$$ $

458.55506.80 560.96

Sensitivity Matrix: Margin of Safety %Discount Rates-3% -1% 7% -7.0% 3.4% 12.9% 21.7% 29.6% 8% -14.4% -3.6% 6.4% 15.5% 23.9%

9%-21.9% -10.7%

10% -29.5% -17.9% -7.2% 2.8% 11.9%

11% -37.1% -25.2% -14.1% -3.8% 5.7%

Variable FieldsIntangibles% add to DCF Decay Rate (Yr4E-Yr7E) Extra Decay (Yr8E-Yr10E) 0% 10% 10%

Growth Rates

1%3% 5%

-0.4%9.2% 18.0%

Apple Inc. (AAPL)2/18/2013

Shares Out. 939.06 939.06

M.O.S 66%

Growth 5.5% 5.5%

Projection Forecast

EPS $33.55

Corp Bond 4.00

Enter Ticker

Refresh2007-2011 62.9% 2003-2010 104.9%

CLEAR2008-2012 69.4% 2004-2011 86.0% 2004 0.36 2014E $ 35.39 $ 21.19 $ 50.89 $

Current Price

Intrinsic $

Buy Under

Actual M.O.S 52 Wk High 52 Wk Low

$460.162007-2010 56.8% 2005-2012 61.2% 2005 $ 1.56

$461.282008-2011 72.8% 2003-2008 121.7% 2006 2.27

$156.832009-2012 69.4% 2004-2009 90.7% 2007 3.93

0%2007-2009 52.0% 2005-2010 57.6% 2008 $ 5.36

$705.072008-2010 68.1% 2006-2011 64.9% 2009 9.08

$435.002009-2011 2010-2012 74.6% 70.7% 2007-2012 62.2% 2010 15.15 Median 69.4%

5 Yr EPS Growth

10 Yr EPS Growth

Median 86.0% 2011 27.68 2012 44.15 TTM $ 44.10

2003 0.10 2013E Forecast Method $ 33.55 Linear Regression Method $ 20.09 Analyst Estimate $ 44.75 Diltued EPS $

$

$

$

$

$

$

$44.15 $27.68 $15.15 $0.10 $0.36 $1.56 $2.27

Graham Value CalculationNormal Earnings Growth Rate Corp Bond Rate Per Share Value MOS Purchase Price Current Price Actual Discount $ 33.55 5.50% 4.00 461.28 66% 156.83 $460.16 0%

$33.55 $35.39

$ $

$3.93 2007

$5.36

$9.08

2003

2004

2005

2006

2008

2009EPS

2010

2011

2012

2013

2014

Graham's Sensitivity MatrixGrowth Sensitivity Increment EPS Sensivity Increments 15% 15%

Growth

3.9% 4.7%

$ $ $ $ $ $

23.48 280.27 301.58 322.89 344.20 393.22

$ $ $ $ $ $

28.52 340.33 366.21 392.08 417.96 477.48

$$ $ $ $

33.55400.39 430.83 491.72 561.74

$ $ $ $ $ $

38.58 460.45 495.46 530.47 565.48 646.00

$ $ $ $ $ $

43.61 520.50 560.08 599.66 639.24 730.26

5.5%6.3% 8.2%

$ 461.28

Apple Inc. (AAPL)2/18/2013 Enter TickerRefresh CLEAR

Current EPS Exp Growth Dividend Yield 5% Current PE 2.30% 2.30%

Business Risk

Financial Risk

Earnings Predictabilit y

Below AverageBelow AverageBelow Average 7 of 20 pts 7 7 of 20 pts 7 7 of 20 pts 7

Katsenelson Absolute PE Current Price Fair Value Fair Value PE Current PE FV Exp Grth

M.O.S

$460.16Determine Business Risk ROE Consistency/quality check ROA Consistency/quality check CROIC Consistency/quality check Intangibles % of Book Value Consistency/quality check 2008 22.99% 12.22% 848.18% 1.36%

$469.982009 26.03% 1 17.34% 1 71.39% 1 1.12% 1

10.662010 29.32% 1 18.64% 1 57.12% 1 0.72% 1

10.432011 33.83% 1 22.28% 1 48.16% 1 4.62% 1

5%2012 35.30% 1 23.70% 1 38.24% 1 3.57% 1

2%TTM 32.78% 1 21.29% 1 42.33% 1 3.50% 1 AVERAGE 30.0% 5 19.2% 5 184.2% 5 2.5% 5 STDEV 4.8% 4.2% 325.5% 1.6%

Business Risk Factor:Determine Financial Risk Current Ratio Consistency/quality check Total Debt/Equity Ratio Consistency/quality check Short Term Debt/Equity Ratio Consistency/quality check FCF to Total Debt Consistency/quality check

20 pts out of 202008 2.46 0.88 0.00 45.29% 2009 2.74 1 0.50 1 0.00 1 56.40% 1

Excellent 10% Factor2010 2.01 1 0.57 1 0.00 1 60.14% 1 2011 1.61 1 0.52 1 0.00 1 75.65% 1 2012 1.50 0 0.49 1 0.00 1 71.65% 1 TTM 1.54 1 0.54 1 0.00 1 67.35% 1

20AVERAGE 1.98 4 0.58 5 0.00 5 62.7% 5

0.0%STDEV 0.52 0.15 0.00 11.1%

Financial Risk Factor:

19 pts out of 202009 40.14% 1 19.19% 1 $9.08 1 $10,159.00 1

Excellent 9% Factor2010 39.38% 0 21.48% 1 $15.15 1 $18,595.00 1 2011 40.48% 1 23.95% 1 $27.68 1 $37,529.00 1 2012 43.87% 1 26.67% 1 $44.15 1 $50,856.00 1 TTM 41.91% 0 25.35% 0 $44.10 0 $56,728.00 1

19

0.0%

Determine Earnings Predictability 2008 Gross Margin 34.31% Consistency/quality check Net Margin 14.88% Consistency/quality check Earnings $5.36 Consistency/quality check Cash from Ops $9,596.00 Consistency/quality check

AVERAGE STDEV 40.0% 3.2% 3 21.9% 4.4% 4 24.25 17.16 4 $30,577.17 20708.01 5

Earnings Predict. Factor:

16 pts out of 20

Excellent 6% Factor

16

0.0%

Katsenelson Absolute PE Valuation ModelEarnings Growth Dividend Yield Adjusted Base PE Business Risk Premium/Discount Factor: Financial Risk Premium/Discount Factor: Earnings Predictability Premium/Discount Factor: Adjusted Fair Value PE 10.43 2.00 = 12.43 x Below Average [1 + (1 - 1.05)] 1.05 x Below Average [1 + (1 - 1.05)] 1.05 x Below Average [1 + (1 - 1.05)] 1.05 = 5% 10.66 5.00% 2.30%

P/E 7.00 7.65 8.30 8.95 9.60 10.25 10.90 11.55 12.20 12.85 13.50 14.15 14.80 15.45 16.10 16.75 17.40 17.90 18.40 18.90 19.40 19.90 20.40 20.90 21.40 21.90

Exp EPS Grwth Rate 0% 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% 11% 12% 13% 14% 15% 16% 17% 18% 19% 20% 21% 22% 23% 24% 25%

0.65

Dividend Yield 0.0% 0.1% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% 3.5% 4.0% 4.5% 5.0% 5.5% 6.0% 6.5% 10.0%

Add'l P/E Points 0.0 0.5 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 5.0 5.5 6.0 6.5 10.0

0.50

Apple Inc. (AAPL)2/18/2013Figures in Millions except per share values

Shares Out. 939.06 939.06

Main. Capex $6,000.00 $6,000.00

Normalized Income $40,000.00 $40,000.00

Discount Rate 9%

R&D Years 3

SG&A % 25%

Enter Ticker

Refresh

CLEAR

Current Price

EPV

Net Reproduction Value

EPV MOS

NCAV

52 Wk High

52 Wk Low

$460.16

$442.94

$123.39 EPV Valuation Section

0.0%

($6.32)

$705.07

$435.00

Asset Valuation Section

Data: Asset ValuationShares Outstanding Balance Sheet Assets Adjusted Assets Total Liabilities Total Equity Average SGA % Marketing/Brand Value R&D Value Cash Needed for Business Interest Bearing Debt Non Interest Bearing Debt Excess Cash 939.1 $ 196,088.0 $ 196,088.0 $ 68,742.0 $ 127,346.0 8.6% $ 13,504.6 $ 4,435.2 $ 1,646.9 $ $ 61,468.0 $ 36,689.8

Values for Normalized IncomeTTM Free Cash Flow Avg Normalized Income Med Normalized Income Avg Adj. Income 5 yrs TTM Adjusted Income $ $ $ $ $ 46,300.0 24,154.5 22,956.9 20,460.3 44,543.2

EPV > Net Repro Value = Moat exists EPV = Net Repro Value = No Moat EPV < Net Repro Value = Value Destroyer$500 $450 $400 $350 $300 $250 $200 $150 $100 $50 $0

Data: EPVCost of Capital Normalized Adjusted Income Average Maintenance Capex Interest Bearing Debt 1% of sales Cash & Equiv Cash - Debt Shares $ $ $ $ $ $ 9.0% 40,000.0 6,000.0 1,646.9 39,820.0 38,173.1 939.06

Calculation: Asset ValuationTangible BV Adjusted BV NCAV Reprod. Cost of Assets Reprod. Cost of Assets BV Total Net Reprod. Cost Total Per Share $ 121,503 $ 129.39 $ $ $ $ $ 127,346 (5,933) 214,028 145,286 115,870 $ $ $ $ $ 135.61 (6.32) 227.92 154.71 123.39

Book Value

Net Repro Value

EPV

Calculation: EPVCost of Capital Rates 5% 7% $ $ EPV 680,000.0 485,714.3 Per Share $ 724.13 $ 517.23 + Cash - Debt $ 718,173.1 $ 523,887.4 $ $ Per Share 764.78 557.88

9%11% 13%

$$ $

377,777.8309,090.9 261,538.5

$$ $

402.29329.15 278.51

$$ $

415,950.9347,264.0 299,711.6

$$ $

442.94369.80 319.16

Quarterly numbers based on:

Q1 Book Value Fixed BV $ 16,154.0 $ 23,666.0 $ 11,598.0 $ 9,936.0 $ 21,534.0 $ Multiplier Reproduction Asset Value $ 16,154.0 $ $ $ $ 23,666.0 11,598.0 9,936.0 21,534.0

Adjustments: AssetsCash & Equivalents Marketable Securities Accounts Receivable Other Receivable Net Receivables Inventories: Raw Materials Inventories: Work in Progress Inventories: Purchased Components Inventories: Finished Goods Inventories: Other Inventories -- Total Prepaid Expenses Current Defered Income Taxes Other Current Assets Total Current Assets Goodwill, Net Intangibles, Net Intangibles Property/Plant/Equipment - Net Other Long Term Assets, Total Total Assets

Adjustments: Liabilities & EquityAccounts Payable Accrued Expenses Accrued Liabilities Notes Payable/Short Term Debt Current Port. of LT Debt/Capital Leases Other Current Liabilities Total Current Liabilities Long-Term Debt Capital Lease Obligations Deferred Income Taxes Total Other Liabilities Total Liabilities Common Stock Equity Retained Earnings Total Capitalization Total Equity Total Liabilities & Equity

Book Value $ 26,398.0 $ $ 11,214.0 $ $ $ $ $ $ $ $ $ $ $ $ $ $ 1,993.0 39,605.0 21,863.0 68,742.0 127,346.0 109,567.0 127,346.0 127,346.0 196,088.0

Fixed BV

Multiplier

Reproduction Liability Value $ 26,398.0 $ $ 11,214.0 $ $ $ 1,993.0

$ $ $ $ 1,455.0 $ 1,455.0 $ $ 2,895.0 $ 6,644.0 $ 72,348.0 $ 1,381.0 $ 4,462.0 $ 5,843.0 $ 15,422.0 $ 102,475.0 $ 196,088.0

$$ $ $ $

39,605.021,863.0

$ $ $ $ $ $ $ $ $ $ $

1,455.0 2,895.0 6,644.0 72,348.0 1,381.0 4,462.0 5,843.0 15,422.0 102,475.0 196,088.0

$$ $ $

68,742.0127,346.0 109,567.0 127,346.0

$ $

127,346.0 196,088.0

Apple Inc. (AAPL)2/18/2013 Enter TickerRefresh CLEARBV Multiplier 100% 75% $ 50% 16,150.50

Current Price

NNWC

NNWC %

NCAV

NCAV %

$460.16

-$12.83

0.0%

$3.84

0.0%

Figures in Millions except per share values Cash & Equivalents Marketable Securities Accounts Receivable Other Receivable Receivables Inventories: Raw Materials Inventories: Work in Progress Inventories: Purchased Components Inventories: Finished Goods Inventories: Other Inventories -- Total Current Assets - Total Total Assets Total Liabilities Shares Outstanding

$ $ $ $ $ $ $ $ $ $ $ $ $ $

BV 16,154.00 23,666.00 21,534.00 21,534.00 1,455.00 1,455.00 72,348.00 196,088.00 68,742.00 939.06

Net Net Value $ 39,820.00

$ 727.50 $ 72,348.00 $ 196,088.00 $ 68,742.00 939.06 Total ($m) $ 72,348.00 432.1B $ 127,346.00 $ (12,044.00) $ 3,606.00 Per Share 77.04 460.16 135.61 (12.83) 0% 3.84 0%

Total Current Assets Market Cap & Share Price Book Value Net Net Working Capital Discount to NNWC Net Current Asset Value Discount to NCAV

$ $ $ $ $

jaetest

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