Investment Management - Evaluation of Apple Inc. for Investment Purpose

Running head: INVESTMENT MANAGEMENT
Investment Management
Name of the Student:
Name of the University:
Authors Note:

INVESTMENT MANAGEMENT 2
Table of Contents
1. Introduction:...........................................................................................................................3
2. Investment Case:....................................................................................................................3
3. Sector Outlook:......................................................................................................................6
4. Fundamental Analysis:.........................................................................................................10
4.1 Financial Ratios:.................................................................................................................10
4.2 Fundamental Analysis:.......................................................................................................12
4.3 Technical Analysis:............................................................................................................14
5. Risk Analysis:......................................................................................................................15
6. Conclusion:..........................................................................................................................17
Reference and Bibliography:....................................................................................................18

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1. Introduction:
The assessment aims in evaluating the performance of Apple Inc for the fiscal year of
2018. The performance is relatively evaluated with the help of financial ratios such as
liquidity, profitability and efficiency ratio. Furthermore, technical analysis is used for
analyzing the current financial trend of the company and determine whether the price will fall
or increase over time. In addition, the calculations are also conducted for the fundamental
analysis, which uses dividend discount model for analyzing the theoretical price of the stock
and comparing it with the current share price. Further evaluation is conducted on quantitative
and qualitative risk analysis for Apple Inc, which can eventually help in detecting the
strength, weakness, threat and opportunities for the company. The assessment provides
relevant information regarding the current stock prices and investment case, which can allow
investors to generate higher income over the period. Lastly, the evaluation has been
conducted on the economic condition of US to determine the impact it might have on the
performance of the Apple Inc.
2. Investment Case:
The stock selected for investment purpose is Apple Inc, as the organisation has been
generating high level of income over the period of time. In addition, the share price of Apple
Inc. has relevantly increased over the fiscal years, due to the improvements, which can be
achieved in previous fiscal years. Uechi et al. (2015) indicated that investors carefully sort
stocks for investment with the help of fundamental and technical analysis, which allows them
to make calculate investment decisions. The company has also increased the level of
dividends for each fiscal year, which can eventually help in generating high level of income
over for the investors. Apple Inc is considered a safe-haven for the investors, as it allows

INVESTMENT MANAGEMENT 4
them to improve the level of income from the investment and protect from stock market
volatility (Apple.com 2018).
Figure 1: Share price position of Apple
(Source: Nasdaq.com 2018)
The above figure provides details regarding the share price condition of Apple Inc,
which has relevantly increased over the period of time. This improvement in the current
operations of the company has mainly helped in raising the level of share price, which raises
the level of income for investors. From 2017, the shear price of Apples has skyrocketed from
the level of $120 to the peak of $225 in 2018 (Apple.com 2018). This increment in overall
valuation of stock portrays a positive attribute for the stock, which can eventually help in
improving the level of income for investment. The overall trend of the stock has been