Apple Stock Research Analysis - 950 Words

Apple: Stock Research Analysis Apple (AAPL) is one of the most high profile stocks in the world. Regarding its valuation, people are often confused by its high price. Even though the price is high, Apples valuation is significantly lower than its historical earnings growth rate and, more importantly, its forecast growth. Consequently, we believe that this high-profile growth stock that has recently began paying a dividend is undervalued at these levels. About Apple, taken directly from its website: Apple designs Macs, the best personal computers in the world, along with OS X, iLife, iWork and professional software. Apple leads the digital music revolution with its iPods and iTunes online store. Apple has reinvented the mobile†¦show more content†¦However, since Apple has just begun paying a dividend, we are not yet including any dividends in our performance calculation. The following graph plots the historical P/E ratio (the dark blue line) in conjunction with 10-year Treasury note interest. Notice that the current P/E ratio on this quality company is as low as it has been since 1998. A further indication of valuation can be seen by examining a companys current price-to-sales ratio relative to its historical price-to-sales ratio. The current price-to-sales ratio for Apple is 4.30, which is historically normal. Looking to the Future Extensive research has provided a preponderance of conclusive evidence that future long-term returns are a function of two critical determinants: 1. The rate of change (growth rate) of the companys earnings 2. The price or valuation you pay to buy those earnings Forecasting future earnings growth, bought at sound valuations, is the key to safe, sound, and profitable performance. The Estimated Earnings and Return Calculator Tool is a simple yet powerful resource that empowers the user to calculate and run various investing scenarios that generate precise rate of return potentialities. Thinking the investment through to its logical conclusion is an important component toward making sound and prudent commonsense investingShow MoreRelatedThe Apple Inc. And Focuses On The Environmental Analysis Essay1488 Words   |  6 Pagesintroducing the Apple Inc. and focuses on the environmental analysis. Different environment can affect the company develop. In the recent year, the Apple Inc. publishes two new technologies which are the Apple Watch and Apple Pay. These are following the environmental to make this decision. The environment is divided by five parts which are technology, economic, social, regulation and ethics. According these five aspects to analysis the Apple Inc. Firstly, it introduces the Apple Inc. and writesRead MoreApple Inc : An Inventive Technology Co mpany Functioning1645 Words   |  7 PagesApple Inc is an inventive technology company functioning in the Electronic Equipment industry. It designs, creates and markets mobile communication and media devices, computers and portable digital music players and sells a variety of related software, services, peripherals, networking solutions and third-party digital content and applications (CNN MONEY, 2015). Recently, Apple reported record second quarter results for its 2015 fiscal year ended March 28. The company posted quarterly revenue ofRead Moreâ€Å"The Apple Of Your I† Case Analysis. 4.7. Which Of Porter’S1176 Words   |  5 Pagesâ€Å"The Apple of Your i† Case Analysis 4.7. Which of Porter’s four competitive strategies does apple engage in? Explain. Out of the four competitive strategies according to Porter, Apple engages in a focused differentiation strategy. Apple has been very successful by creating different products and services from competitors that are innovative, high quality, and user-friendly. From their unique product designs, to their state-of-art development of operating systems and software, Apple’s has continuouslyRead MoreMarketing Analysis : Apple Inc. Essay1469 Words   |  6 PagesApple is a leading company in the industry of Technology manufactures mobiles, computers, communications devices and portable devices. The company also sells software computer accessories and network solutions. Apple was said â€Å"the most valuable company in the world† apple earn this value though its creativity and innovation. The company has high values for its stakeholders and it has a sustainable competitive advantage for its shareholder in the industry. Industry Analysis Firm Analysis: AppleRead MoreTesla And The Purchase Of Tesla1286 Words   |  6 PagesThe purchase of Tesla was equal parts technical, and fundamental analysis. Tesla being one of my first big purchases of the game, I first checked the stock’s history. The stock has seen a large resurgence in February and was set to raise. Upon seeing this, I decided to check up on the Fundamentals of the company then decide whether or not to invest. At the time, Tesla was receiving quite a lot of media attention. This was because of their upcoming release of the Model X. The car would be able toRead MoreApple Inc. An American Corporation1259 Words   |  6 PagesApple INC is an American corporation headquartered in the state of California. Founded on April 1st, 1976 by Steve Jobs, Steve Wozniak, and Ronald Wayne. The Company designs, manufactures, and markets mobile communication and media devices, personal computers, and portable digital music players, and sells a variety of related software, services, accessories, networking solutions, and third-party digital content and applications. All these products are sold worldwide through Apple’s retail storesRead MoreSimilarities Between Ifrs And International Financial Reporting Standards Essay813 Words   |  4 PagesIn this research project, we will be comparing the similarities and differences between IFRS (International Financial Reporting Standards) and GAAP(Generally A ccepted Accounting Principles), specifically in the cash flow statement, and we will be using Apple vs Samsung’s financial statement and stock price to compare the similarities and differences between IFRS and GAAP. 2. Motivation(Vicki) Today, with increasing globalization in the business world, many investors are looking for opportunitiesRead MorePurpose Of An Income Statement1232 Words   |  5 Pagessupply to the company (Reeves, Unk). Finally, income statements assist stock investors in deciding whether the company would make a good investment (Reeves, Unk). Major expenses on an income statement can be broken down into two categories: operating expenses and non-operating expenses (Boundless Staff, Unk). Operating expenses include cost of goods sold (COGS), selling, general and administrative expenses, depreciation, and research development (Boundless Staff, Unk). Non-operating expenses includeRead MoreCase Study : Tech Shield Should Make A Decision1744 Words   |  7 PagesShield should make a decision to invest in Apple Inc. stocks because they are one of the most popular electronics company in the world. This report recommends making an investment in Apple because: †¢ Affordable stock price †¢ Strong business strategies †¢ High market share But Apple Inc. also has a few weaknesses compare to other electronic companies such as: †¢ Higher prices compare to other brands †¢ Nonnegotiable advertising price Research shows that Apple would never lower its premium prices butRead MoreApple PESTEL Essay1715 Words   |  7 Pagesï » ¿1. Introduction Apple Inc., is known to be one of the world’s most valuable companies. It is a multi-national company with a worldwide presence; approximately 72,800 employees and total net sales of $156 billion in the year 2012 (Apple annual report, 2012). Steve Jobs and Steve Wozniak, both college dropouts, founded this corporation in 1976 - â€Å"Steve Jobs, helped to transform the way in which the computer is used today through his creation of the first computer processing unit and his creative