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Apple: Highly Attractive According To The HQC Scorecard And Currently A Buy

Jun. 15, 2022 2:00 PM ETApple Inc. (AAPL)15 Comments
Frederik Mueller profile picture
Frederik Mueller


  • My Discounted Cash Flow Model shows that Apple is currently undervalued.
  • The DCF Model I have used calculates a fair value of $165 for Apple. This results in an upside of 23.8%.
  • The High-Quality Company ('HQC') Scorecard for Long-Term Investors I have developed rates Apple with 85 out of 100 points.
  • Apple’s overall scoring according to the HQC Scorecard shows that the company is currently very attractive in terms of risk and expected compound annual rate of return.
  • My HQC Scorecard demonstrates Apple’s wide economic moat, as well as its high levels of profitability, innovativeness and expected rate of return.

Apple Store in der 5th Ave in Manhattan, NYC

ozgurdonmaz/iStock Unreleased via Getty Images

Investment Thesis

  • According to my HQC Scorecard, Apple (NASDAQ:AAPL) is rated as very attractive in the categories of Economic Moat (100 out of 100 points), Profitability (100 out of 100 points), Innovation (100 out of 100 points) and Expected
Apple DCF Model

Source: The Author

Apple: Appendix 1

Source: The Author

Apple Appendix 2

Source: The Author

Apple's Dividend

Source: The Author

Classification HQC Scorecard

Source: The Author

Categories HQC Scorecard

Source: The Author

Items of the HQC Scorecard

Source: The Author

Apple according to the HQC Scorecard

Source: The Author

Apple according to the Seeking Alpha Factor Grades

Source: Seeking Alpha

This article was written by

Frederik Mueller profile picture
In my analyses, I aim to identify companies that have strong competitive advantages over their competitors (for example, a strong brand image, cost advantages, special know how, strong pricing power, a strong distribution network, etc.) in order to support you to find excellent long-term investments. I aspire to help you build an investment portfolio consisting of high-quality companies that are particularly attractive in terms of risk and reward (for example, due to their wide economic moat, high financial strength, high profitability, attractive valuation, growth potential and expected return). I was born in Germany and majored in Business Administration at the University of Mannheim (Germany) and San Diego State University (United States).

Analyst’s Disclosure: I/we have a beneficial long position in the shares of AAPL, AMZN, DIS, NFLX either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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