WK2 Assessment

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APPLE, INC. VALUATION FIN/571: Corporate Finance Kenneth Baker Brianna Lynch December 18, 2023
KEY PERFORMANCE INDICATORS 2 Apple, Inc. (AAPL) Key Performance indicators (KPI) Definition: A collection of numerical metrics intended to assess the overall long-term performance of an organization. Particularly assist in evaluating a company's operational, financial, and strategic accomplishments, particularly in relation to other companies operating in the same industry (Twin, 2023). Apple, Inc KPI Market Share Shareholder value
STOCK PRICE TO P/E RATIO 3 Current Stock Price $195.60 Earning per Share $6.13 Current Price to Earning Ratio 32.21 P/E = stock price/earning per share A business that steadily increases its earnings will draw in investors seeking long-term gains .
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MARKET CAPITALIZATIONS Apples current Market cap: 3.044 trillion Definition: Refers to the total market value in US dollars of all outstanding shares of stock of a corporation (Fernando, 2023). Is computed by multiplying the current stock price by the total number of outstanding shares of the company. What is means to investors: Instead of using sales or total assets, the investment community utilizes this number to assess a company's size. When making a purchase, the market capitalization is utilized to ascertain whether a potential takeover target is a fair bargain for the
TRENDS IN STOCK PRICE, DIVIDEND PAYOUT, AND TOTAL STOCKHOLDERS’ EQUITY 5 Year 2021 2022 2023 Stock Price (average) 139.0277 153.5276 171.4005 Dividend payout (every November) $0.86 $0.90 $0.95 Total Stockholders’ equity (billions) 63.09 $50.672 $62.146 The stockholders’ equity has increased by 22.64% from 2022-2023. With the pandemic and inflation there was a decrease in the stockholder equity between 2021-2022. However, Apple has managed to pull through and has increased its trends.
MEETING FINANCIAL GOALS 6 Apple meeting financial goals A corporation must have strong liquidity, high solvency, profitability, efficiency, and solid coverage to accomplish its financial objectives. Profit margin is at 25.31% Ratios have improved over time as compared to prior years. Recommendation of stock Buy Just looking at the numbers, it's clear that the business is performing well and will reach its financial targets. The stock prices show a low of 124.17 and a high of 199.62 in the past 52 weeks. Currently, the stock is trading at $195.69. EPS ratio is 6.13 and has a dividend yield of 0.49% for 2023 The market for this stock is in good standing, profitable and has strong stock appreciation.
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The choice of whether to hold, purchase more, or sell will differ depending on how long an investor has held onto this stock. Some analysts see the stock has a risk because there could be a potential slowdown in exponential growth due to Apples current revenue coming mainly from iPhone products (Zucchi, 2023). A reduction in iPhone purchases could result in decreased stock price Having a more differentiated portfolio in different sectors so some may not want to purchase this stock AI technology risk: Apple has not made AI a priority leaving it behind on the curve compared to other big tech companies (Duggan, 2023). COMPARISON OF OTHER ANALYSTS 7
REFERENCES Apple cash flow from Financial Activities 2010-2023: AAPL . Macrotrends. (n.d.-a). https://www.macrotrends.net/stocks/charts/AAPL/apple/cash-flow-from-financial-activities Duggan, W. (2023, September 7). Should you buy apple (AAPL) stock? | investing | U.S. news . Should You Buy Apple (AAPL) Stock? https://money.usnews.com/investing/stock-market-news/articles/pros-and-cons- to-buying-apple-aapl-stock Fernando, J. (2023, December 14). Market capitalization: How is it calculated and what does it tell investors?. Investopedia. https://www.investopedia.com/terms/m/marketcapitalization.asp Twin, A. (2023, November 6). Key performance indicator (KPI): Definition, types, and examples. Investopedia. https://www.investopedia.com/terms/k/kpi.asp Yahoo! (2023, December 18). Apple Inc. (AAPL) income statement . Yahoo! Finance. https://finance.yahoo.com/quote/AAPL/financials?p=AAPL Zucchi, K. (2023, February 28). Investing in Apple: The risks and rewards. Investopedia. https://www.investopedia.com/stock-analysis/021815/investing-apple-risks-rewards-aapl.aspx 8