What's Driving Our $30 Billion Valuation For Apple Watch?

We are valuing the Apple Watch division at about $30 billion using our discounted cash flow model. This represents over 4% of Apple's market cap. For perspective, that's as much as the market cap of the Swatch Group, the world's largest watch manufacturer and Fossil Group, one of the largest U.S. watch manufacturers, combined. Besides the direct financial impact, we think that the Apple Watch will also have significant intangible benefits for Apple by helping to further customer engagement, whil...