Rajasthan University Apple Equity Investment Analysis Report

This report provides an in-depth analysis of Apple's equity investment, evaluating its financial performance from 2006 to 2017. It examines key financial metrics such as Return on Equity (ROE), Net Income, and Shareholders' Equity, highlighting trends and growth patterns. The report then shifts to the current scenario, noting Apple's record-breaking market capitalization and strong iPhone sales. It includes relevant financial data such as market cap, P/E ratio, EPS, and dividend information. Furthermore, the report incorporates company forecasts, projecting future earnings, EPS growth, and dividend expectations. The analysis concludes by emphasizing reasons for investing in Apple, including its market dominance, favorable P/E ratio, Warren Buffet's investment, and the company's strong brand power and innovative product launches, supporting the recommendation for long-term investment in Apple equity.

Apple company 1
Apple Equity Investment
Tanushree Akar
Rajasthan University

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Contents
Apple Equity Investment.................................................................................................................2
Introduction..................................................................................................................................2
Past scenario:...................................................................................................................................3
Current scenario...............................................................................................................................4
Company’s forecast.........................................................................................................................5

APPLE COMPANY 3
Apple Equity Investment
Introduction
Shareholders equity means deducting total liabilities from total assets. Or we can say
shareholders equity means adding share capital and retained earnings then deducting treasury
shares. Apple share holders equity has being increasing and decreasing every year. So one should
invest in long term investment in apple equity. And in this statement we will discuss why we
should invest in apple equity. If we see companies past analysis there has been potential growth
in companies business which proves that company is a very good long term investment.
USD $ in millions
Date ROE Net income (loss) Shareholders' equity
Sep 30, 2006 19.92% 1,989 9,984
Sep 29, 2007 24.06% 3,496 14,532
Sep 27, 2008 22.99% 4,834 21,030
Sep 26, 2009 20.49% 5,704 27,832
Sep 25, 2010 29.32% 14,013 47,791
Sep 24, 2011 33.83% 25,922 76,615
Sep 29, 2012 35.30% 41,733 118,210
Sep 28, 2013 29.98% 37,037 123,549
Sep 27, 2014 35.42% 39,510 111,547
Sep 26, 2015 44.74% 53,394 119,355
Sep 24, 2016 35.62% 45,687 128,249
Past scenario:
Period Ending: Trend 9/24/2016
Total Revenue $215,639,000
Gross Profit $84,263,000
Net Income $45,687,000
Net Income Applicable to Common Shareholders $45,687,000

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In 2016 we can see that company earned a good profit margin and there has been up and down
in companies share prices but in 2017 there has been potential growth in companies share prices
as compare to 2016.
Current scenario:
For the first time in history Apple company’s market capitalization has hit a record of $800
billion. Company has made major sales of the iPhone than expected and at higher prices. In fact
the introduction of iPhone 8 could fuel the share prices further.
Best Bid/Ask N/A / N/A
1 Year Target 180
Today's High /Low $ 161.15 / $ 158.53
Share Volume 28,611,535
50 Day Avg. Daily Volume 25,137,444
Previous Close $ 161.26
52 Week High/Low $ 164.94 / $ 102.53

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Market cap $ 819,360,117,640
P/E Ratio 18.03
Forward P/E(1y) 17.59
Earnings Per Share (EPS) $ 8.80
Annualized dividend $ 2.52
Ex Dividend Date 8/10/2017
Dividend Payment Date 8/17/2017
Current Yield 1.59 %
Beta 1.66
NASDAQ Official Open Price $ 160.86
Date of Open Price Sep. 8, 2017
NASDAQ Official Close Price $ 158.63
Date of Close Price Sep. 8, 2017
Revenue , EPS, dividends
2017 2016
Revenue $176,655(m) $215,639(m)
EPS 7.14 8.31
Dividends 1.83 2.23
.
Company’s forecast:
Yearly earning forecasts:
It is expected that company will outperform.

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Apple Company Having a median target of 180.50, with a high estimate of 208.00 and a low
estimate of 140.00. From the last price of 161.26 median estimate represents a 11.48% of
growth.
EPS are expected to grow 8.6% annually. Dividend is expected to be 2.37usd which represents
8.67% growth from 2016 I in which dividend was 2.18usd and sales are expected to grow 5.63%
The overall company’s performance will be better in future. Therefore, one should invest in
apple equity.
why one should invest in Apple?
Apple is having the largest Market Capitalization in technology sector. Its market capitalization
is around $800 billion. Price earning ratio is 18.13 which is favorable as compare to the
technology sector. Warren Buffet company Berkshire Hathaway, invested in Apple company and
today they have doubled their stake. Warren Buffet says Apple is a good long term investment
because its dividends and buy backs are very predictable and regular. Since last two years
company has being paying dividend of more than $4 for the past two years and has bought back
more than $760 million shares in last 5 years.
If you see company is not burning too much of cash and company is doing billion dollars of sales
every quarter. The proportion of burning cash as compare to the cash inflow is very low and o
the other side the volume of iphone sales is massive. Very rare in history any company’s product
has been admired like this by the public. There is a huge buzz about the I phone among the
youth. This product turned out to be a turning point in company’s growth..Forty percent is an
very high margin in a business. Therefore, Apple is making incredible profit. we must say apple
company since very beginning has been very upgraded and innovative in launching it’s products.
Like ipods, I pads, I phones and many more. Now, recently only it has come up with the concept
of apple watch , apple TV which is very meaning full and has been loved by the masses. the
major role in companies success is its brand power. Due to its brand power apple company’s
products are high in demand.

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References
Apple inc.,`return on equity`(2005)
` apple company financials `, <nasdaq.com>
Mirabal, S.`Apple inc. introduction` ,( 2009),<appleinc.blogspot.in>
Yoshikami, M “7 reasons apple is a buy”(2016)7<canbc.com>