Equity Research Report Assignment
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Added on 2020-05-04
Equity Research Report Assignment
Added on 2020-05-04
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Running Head: Apple (XNAS: AAPL) IXICSalesCurrent Price: USD 163.05Target Price: USD 1601Project Report: Equity Report
Equity Report2ContentsIntroduction.......................................................................................................................3Fundamental analysis........................................................................................................3Business overview............................................................................................................3Key statistics.....................................................................................................................3Financial analysis..............................................................................................................3Catalysts............................................................................................................................4Investment thesis and opinion..........................................................................................4Investment risk vs. strengths.............................................................................................4Economic review..............................................................................................................4Industry overview.............................................................................................................5Conclusion........................................................................................................................5References.........................................................................................................................6Appendix...........................................................................................................................7
Equity Report3Introduction:This report has been prepared to analyze and understand the stock position and the performance of a comapny. In this report, various tools and techniques have been investigated to identify the performance of the Apple Inc. This report would brief that whether the investors must invest in this comapny or not. Fundamental analysis: Fundamental analysis method is important for every investor to analyze and identify the performance of the comapny so that the ups and downs of a comapny could be found and the industry position could also be analyzed. For analyzing the fundamental analysis of the comapny, various tools and techniques have been investigated to identify the performance. Business overview:Apple Inc has its operations in the international market. The head office of thecomapny is in California. The main products and the services of the comapny are to offervarious electronic products and the services of the electronic products to its clients. The mainproducts of the comapny are mobile phones, laptops, music system etc to the clients throughoffline and online stores. This comapny is the leader in the market and it works on its ownoperating system IOS ((Brigham, Eugene and Houston, 2013). Key statistics:The performance of the Apple Inc has been evaluated to analyze and make a decision about the investment and divestment from the comapny. The performance of the comapny and the analysis over the comapny depict that the sales of the comapny is depicting about the better performance, the EPS and revenues of the comapny has been enhanced. Dividend performance of the comapny attracts the investors more to invest into the comapny. Market capital of the comapny depict that the capital of the comapny is according to the industry and the company is quite attractive to make investment (Yahoo finance, 2017). Financial analysis:Further, the financial analysis of the comapny has been analyzed to found the performance and the position of the company. Ratio analysis study has been performed to evaluate the financial position of the company. Ratio analysis study performs that the position
Equity Report4of the comapny in terms of profitability, liquidity, gearing, efficiency and investment ratios have been better in each and every terms. The position of the comapny depict that it is the best option to invest into the comapny (Morningstar, 2017). Catalysts:According to the above evaluation and the calculations over the performance and financial position of the comapny, it has been found that the comapny must sold out the stockas the intrinsic value of the comapny is quite lesser than the market price of the stock and thus it is good option for the investors to sell out the stock right now and get more return from the market. PE Multiple ModelIndustry PE ratio 11.50 EPS 8.31 Intrinsic Value 95.57 Share Price163.050003OvervaluedInvestment thesis and opinion:It is required for every investor to analyze the market and the internal and external position of the industry and the comapny to analyze that it is good for the investors to invest into the market or not (Glen, 2013). Investment is an opportunity which assists the individual and the people to grab the highest market return from the market. It helps the investors to enhance the worth of their invested amount in few days. Various analysts express that it is thebest option for the people to invest their amount into the financial market to raise and enhance the worth of the amount.Investment risk vs. strengths:Investments are the best option for the individual and the people to enhance the worth of their savings. Through, various risks and the strengths are always associated with the investment (Higgins, 2012). The main risk of the investment is the high risk than depositing the amount from bank or keeps the amount at home and the main strength of an investment is the high return which could not be found in the bank or from any other sources. Economic review:
Equity Report5Economical reviews have also been done to analyze and investigate the changes into the market. According to the evaluation, it has been found that the global market has been affected due to the global financial crisis while ago and due to which, the performance of the comapny has also been affected (Madhura, 2011). Further, it has been found that right now the position of the economy has become better. Ant thus the turnover of the comapny has alsobeen enhanced. Through this report, it has been found that it is quite right time for investors to invest into the market and grab the high returns from the market. Industry overview:The analysis over the industry has also been done to analyze the performance of the comapny in terms of the industry and it has been found that the APPLE INC is the leader in the market and it is one of the most selling mobile phone companies in the worldwide. According to the various reports and the articles, it has been found that the Smartphone sales is enhancing day by day in the international market and thus there are various opportunities for the comapny to grab the market and enhance the profitability position and turnover more. The industry is depicting about the various possible and positive changes which would help the comapny to grow more (Brigham, Eugene and Houston, 2012). Conclusion:According to this report, analysis over the industry, analysis over the comapny and theeconomical condition, it has been found and concluded that the comapny is performing very well in the market. The performance and the position of the comapny are currently enhancing. This evaluation and the calculation depict that the investor could invest into the long term.According to the evaluation over the stock price of the comapny, it has been found that the intrinsic value of the comapny is quite lesser than the market price of the stock and thus it is good option for the investors to sell out the stock right now and get more return from the market. The bottom up analysis study depict that the comapny is a good option for the investors to invest for the long time in this comapny.
Equity Report6References:Arnold, Glen.Corporate financial management. Pearson Higher Ed, 2013.Brigham, Eugene F., and Joel F. Houston.Fundamentals of financial management. Cengage Learning, 2012.Brigham, Eugene F., and Michael C. Ehrhardt.Financial management: Theory & practice. Cengage Learning, 2013.Higgins, Robert C.Analysis for financial management. McGraw-Hill/Irwin, 2012.Madura, Jeff.International financial management. Cengage Learning, 2011.Morningstar. Apple Inc. Retrieved from http://financials.morningstar.com/income-statement/is.html?t=AAPL®ion=usa&culture=en-US, 2017.Yahoo finance, IXIC, Retrieved from https://finance.yahoo.com/quote/%5EIXIC/history?period1=1477682726&period2=1509218726&interval=1d&filter=history&frequency=1d, 2017.Yahoo finance. Apple Inc. Retrieved from https://finance.yahoo.com/quote/AAPL/history?p=AAPL, 2017.
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