The IOI training programs show how a company’s investments in the present have a measurable influence on growth in the medium term. Apple has a mountain of assets to invest and the success or failure of its investment program will, to a great extent, determine the value of the company.
We believe that one way to view Apple’s present stock price of around $100 / share is that the market as a whole believes that Apple will stumble in the medium term. Stress testing the IOI model suggests that if Apple’s FCFO declines in the medium term by 5% per year, Apple will be worth around the present $100 / share.
This report investigates the resources Apple has to invest, cultural factors that play a part in its investment program, and likely areas in which it may invest in the future.