AAPL

What it measures Valuation expressed against the cash actually available to all capital providers. Often more honest than EV/EBITDA when capex is meaningful relative to D&A.

Formula EV/FCF = (market_cap + total_debt - cash) / free_cash_flow_ttm

For AAPL Cheap on free cash flow - confirm FCF is sustainable and not propped up by working capital release.

What it measures Adjusts the numerator for debt and cash so heavily-levered or cash-rich companies are comparable. Particularly useful for cross-industry valuation work.

Formula EV/Sales = (market_cap + total_debt - cash) / revenue_ttm

For AAPL Cheap on revenue when you account for the balance sheet.

What it measures How many dollars of book equity each share represents. Useful for asset-heavy businesses (banks, industrials) where book value approximates liquidation floor; less informative for asset-light franchises whose value is in intangibles.

Formula P/B = market_cap / common_equity

For AAPL Trading near or below book - sometimes a margin of safety, sometimes a sign book value will be impaired.

What it measures Multiple of trailing-twelve-month earnings the market has assigned to the company. Lower means cheaper relative to current earnings power, but a single low P/E can also mean the market expects earnings to fall.

Formula P/E = market_cap / net_income_ttm

For AAPL Cheap on current earnings - either an opportunity or a value trap if earnings are about to deteriorate.

What it measures Useful when earnings are negative or noisy (early-stage companies, restructurings). Works best within an industry because gross margin profiles vary wildly.

Formula P/S = market_cap / revenue_ttm

For AAPL Cheap on revenue - investigate whether margins are structurally low or revenue quality is poor.

What it measures Productivity of the asset base. Combined with net margin, this is the DuPont decomposition of ROA: ROA = net_margin * asset_turnover.

Formula Asset Turnover = revenue_ttm / average_total_assets

For AAPL Heavy assets needed per dollar of revenue - utilities, telecoms, capital goods.

What it measures Sanity-check on earnings quality. Persistently below 1 means working capital or capex is consuming earnings; persistently above 1 is unusual and may flag accounting conservatism or non-cash drags.

Formula Cash Conversion = free_cash_flow_ttm / net_income_ttm

For AAPL Earnings exceed cash - common late-cycle warning when receivables and inventories are building.

What it measures FCF the business throws off relative to what you pay for the equity. Treats the equity as a perpetual claim on cash. Cyclicals can swing below zero in a downturn.

Formula FCF Yield = (free_cash_flow_ttm / market_cap) * 100

For AAPL Most of the expected return has to come from growth or multiple expansion, not current cash.

What it measures Pre-capex version of cash conversion. Numbers persistently below 1 suggest accruals are doing the work; numbers persistently above 1 are a (mild) positive sign.

Formula OCF/NI = operating_cash_flow_ttm / net_income_ttm

For AAPL Net income running ahead of operating cash - check accruals (receivables, deferred revenue, inventories).

What it measures Strips out receivables and inventory, leaving only cash and equivalents over current liabilities. Stress-tests whether the business can meet obligations even if collections seize up.

Formula Cash Ratio = cash_and_equivalents / current_liabilities

For AAPL Liquidity depends on receivables and inventory turning - vulnerable to working-capital shocks.

What it measures Whether the company can cover near-term obligations from near-term assets. Below 1.0 doesn't mean insolvent (cash flow can cover the gap) but is worth a closer look.

Formula Current Ratio = current_assets / current_liabilities

For AAPL Short-term obligations exceed short-term assets - watch cash flow timing.

What it measures How much the company funds itself with debt vs. equity. Higher leverage amplifies both returns and risks; the appropriate level varies wildly by industry.

Formula Debt-to-Equity = total_debt / common_equity

For AAPL Conservative balance sheet - lower bankruptcy risk, but may be under-levered for shareholder returns.

What it measures Strips out short-term operating debt and revolver use to focus on permanent capital structure. Useful when comparing companies that fund working capital differently.

Formula LT D/E = long_term_debt / common_equity

For AAPL Permanent debt is low - balance sheet flexibility for opportunistic deals.

What it measures Direct income from holding the share. Stable dividend yield often signals capital discipline; abnormally high yield can be a warning that the dividend isn't covered by FCF and may be cut.

Formula Dividend Yield = (dividends_per_share_ttm / price) * 100

For AAPL Most of the return must come from price appreciation rather than income.

What it measures Lets you compare equity earning power directly to bond yields. A 6% earnings yield is the equity-side analog to a 6% coupon, with the difference being earnings can grow (or contract).

Formula Earnings Yield = (net_income_ttm / market_cap) * 100

For AAPL You're earning a small income yield on the cap - the rest of the return has to come from growth.

What it measures Joseph Piotroski's score for distinguishing winners from losers among low-P/B stocks. Each of 9 questions answers 0 or 1; the more 'yes' answers, the higher quality the recent year-over-year improvements.

Formula Sum of 9 binary indicators across profitability (ROA>0, CFO>0, ROA improving, CFO>NI), leverage (LT debt/assets falling, current ratio rising, no share issuance), and operating efficiency (gross margin rising, asset turnover rising)

For AAPL Fundamentals deteriorating across the board - turnaround story or value trap.

What it detects Bullish when %K crosses above %D while both lines are below the oversold threshold; bearish when %K crosses below %D while both are above overbought.

Trigger rule +1 on bullish cross in oversold; -1 on bearish cross in overbought; 0 otherwise.

Parameters k=14, d=3, smooth=3, ob=80, os=20

For AAPL %K crossed down through %D from overbought — short-term sell trigger.

What it detects Finds two or more pivot highs (tops) or lows (bottoms) within a price tolerance and minimum bar separation. Confirmed multi-bottom is bullish; multi-top is bearish.

Trigger rule +1 at confirmation of a multi-bottom (price retests prior low and holds); -1 at confirmation of a multi-top.

Parameters peak_count=2, tolerance=0.02, min_sep=10

For AAPL Price retested a prior high and rolled — multi-top resistance confirmed.

What it detects A pin bar has a small real body (under ~30% of the bar's range) and a long wick (over ~60%) on one side, sticking out beyond the prior trend. Bullish pin: long lower wick after a downtrend. Bearish pin: long upper wick after an uptrend.

Trigger rule +1 for bullish pin (long lower wick, body near top, after downtrend); -1 for bearish pin.

Parameters body_max=0.3, wick_min=0.6, prior_trend=5

For AAPL Long upper wick rejected the prior upswing — sellers stepped in at the high.

What it detects Enters +1 when close <= lower band, holds until close >= middle band. Symmetric short-side state. Captures reversion-to-mean trades inside Bollinger bands.

Trigger rule +1 enter on close <= lower band, exit on close >= middle. -1 enter on close >= upper, exit on close <= middle.

Parameters period=20, std=2

For AAPL Active short mean-reversion held — price tagged the upper band, exits at the midline.

What it detects Fires on the bar where the close returns inside the bands after the prior close was outside. Long reentry from below the lower band, short reentry from above the upper band.

Trigger rule +1 when prior close < lower band and current close inside; -1 when prior close > upper band and current close inside.

Parameters period=20, std=2

For AAPL Price closed back inside the bands from above — short-term reversion-short signal.