Financial Analysis of Apple Incorporation

Running head: FINANCIAL ANALYSIS
Financial Analysis
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1FINANCIAL ANALYSIS
Table of Contents
Introduction......................................................................................................................................2
Valuation of Apple Incorporation....................................................................................................2
Conclusion and Recommendation...................................................................................................3
References........................................................................................................................................4
Appendix..........................................................................................................................................5

2FINANCIAL ANALYSIS
Introduction
Apple Incorporation the American Multinational Technology Company designs develops
and sells various kinds of consumer electronics, online services and computer software’s. The
company is listed in the NASDAQ Stock exchange with its ticker symbol as ‘AAPL’. The
current share price of the company is around $175.53 (Cortez et al. 2015).
The financial analysis of the company can be performed with the help of the financial
position and the financial performance of the company in the last five-year of trend. The
profitability of the company was assessed to be decreasing for the company when the company
reported falling net profit margin with the volatile revenue base for the company and the rising
operating cost for the company. The financial performance for the company has been volatile
due to the changing business conditions and macro-economic environment for the company
(Latif et al. 2014).
Valuation of Apple Incorporation
The intrinsic valuation for the share price of the company was also done by incorporating
the required rate of return of 12.83% and the dividend growth rate of around 29.63% was also
taken into consideration for the purpose of analysis. The intrinsic valuation of the stock was
determined to be around $258.71 and the current share price of the company is around $175.53
that shows undervaluation of shares when compared with the current prices (Morningstar, 2019).
The financial condition of the company has also been stable but the financial performance of the
company has been volatile due to the changing business scenarios and fast rapid changing
technology. The liquidity position of the company has been stable where the company has tried
to maintain sufficient amount of current assets for paying off the current liabilities of the