Running head: Stock Valuation and Analysis 1 Stock Valuation and Analysis 4 Stock Valuation and Analysis Stock Valuation and AnalysisApple stock has been successful on Wall Street in the past. To look up the Apple Inc. stock you must look for their ticker symbol. According to Investing Answers (n.d.), “A ticker symbol -- also known as a stock symbol -- is a string of letters used to identify a stock, bond, mutual fund, ETF or other security traded on an exchange” (para. 1). For Apple Inc., the ticker symbol is AAPL which has four letters than the usual three or less and generally denote securities traded on the American Stock Exchange and Nasdaq. The current stock market is at 172.97 which is up from a month ago when it was only at 153.30. The high for the past fifty-two weeks is 233.47 and the low was 142.0. Another thing we must look at is the market capitalization or also known as the market cap. For the past five days, Apple Inc. had a closing stock price that has slowly risen every day. Market Cap and Beta According to The Motley Fool (n.d.), “Market capitalization is one of the best measures of a company's size. Also known as a market cap, market capitalization is the total market value of a company's outstanding shares of stock. For example, you may have heard Apple referred to as "the most valuable company in the world." That's because Apple currently has the highest market cap of any publicly traded company” (para 1). For Apple Inc., they have a market cap of 820.69B. As we can see in the chart below Apple Inc. has had a steady up rise since the middle of June of 2016 but towards the end of 2018, they had a sharp decline. According to Investopedia (2019), “A beta coefficient is a measure of the volatility, or systematic risk, of an individual stock in comparison to the unsystematic risk of the entire market. Beta is used in the capital asset pricing model (CAPM), which calculates the expected return of an asset using beta and expected market returns. In statistical terms, beta represents the slope of the line through a regression of data points from an individual stock's returns against those of the market” (para. 1). Apple Inc. Beta (3Y monthly) is .99 which is just under the 1.0 which shows a price activity that is strongly correlated with the market. Value of Stock, Price to Earnings Ratio & Dividend Yield The stock price is the amount it cost to buy a share of a company or supply. There can be a lot of dynamics that can cause stock prices to change. When demand for a stock is high the value will rise. The price to earnings ratio is the price an investor is paying for one dollar of a company's earnings or profit. Apple Inc. has a P/E of 14.32 and is computed by dividing an Apple Inc. current stock price by its earnings per share. The Dividend yield is used to measure an investment’s productivity, and some investors view it as a form of "interest rate" that is earned on an investment. To calculate the dividend y.

1. Running head: Stock Valuation and Analysis
1
Stock Valuation and Analysis
4
Stock Valuation and Analysis
Stock Valuation and AnalysisApple stock has been successful
on Wall Street in the past. To look up the Apple Inc. stock you
must look for their ticker symbol. According to Investing
Answers (n.d.), “A ticker symbol -- also known as a stock
symbol -- is a string of letters used to identify a stock, bond,
mutual fund, ETF or other security traded on an exchange”
(para. 1). For Apple Inc., the ticker symbol is AAPL which has
four letters than the usual three or less and generally denote
securities traded on the American Stock Exchange and Nasdaq.
The current stock market is at 172.97 which is up from a month
ago when it was only at 153.30. The high for the past fifty-two
weeks is 233.47 and the low was 142.0. Another thing we must
look at is the market capitalization or also known as the market
cap. For the past five days, Apple Inc. had a closing stock price
that has slowly risen every day.

2. Market Cap and Beta
According to The Motley Fool (n.d.), “Market capitalization is
one of the best measures of a company's size. Also known as a
market cap, market capitalization is the total market value of a
company's outstanding shares of stock. For example, you may
have heard Apple referred to as "the most valuable company in
the world." That's because Apple currently has the highest
market cap of any publicly traded company” (para 1). For Apple
Inc., they have a market cap of 820.69B. As we can see in the
chart below Apple Inc. has had a steady up rise since the middle
of June of 2016 but towards the end of 2018, they had a sharp
decline.
According to Investopedia (2019), “A beta coefficient is a
measure of the volatility, or systematic risk, of an individual
stock in comparison to the unsystematic risk of the entire
market. Beta is used in the capital asset pricing model (CAPM),
which calculates the expected return of an asset using beta and
expected market returns. In statistical terms, beta represents the
slope of the line through a regression of data points from an
individual stock's returns against those of the market” (para. 1).
Apple Inc. Beta (3Y monthly) is .99 which is just under the 1.0
which shows a price activity that is strongly correlated with the
market.
Value of Stock, Price to Earnings Ratio & Dividend Yield
The stock price is the amount it cost to buy a share of a
company or supply. There can be a lot of dynamics that can
cause stock prices to change. When demand for a stock is high
the value will rise. The price to earnings ratio is the price an
investor is paying for one dollar of a company's earnings or
profit. Apple Inc. has a P/E of 14.32 and is computed by
dividing an Apple Inc. current stock price by its earnings per
share. The Dividend yield is used to measure an investment’s
productivity, and some investors view it as a form of "interest
rate" that is earned on an investment. To calculate the dividend
yield you must divide the annual dividend by the current stock

3. price. Apple Inc. has a dividend yield of 1.7% or a dividend of
$0.73 per share, or $2.92 annualized.
Enterprise Value, Stock Split & Book Value per Share
The enterprise value represents the entire economic value of a
company. Market Capitalization + Total Debt - Cash =
Enterprise Value and at Apple Inc. their enterprise value is
834.29B. Apple has split its stock four times since it went
public and its last stock split was on June 9, 2014, at a 7-to-1
split. The book value per share is a company's assets minus its
liabilities. Apple Inc. book value per share for the most recent
quarter is 6.99.
Conclusion
Right now, investors are recommending is to hold stock in
Apple Inc. and this has been steady. According to CNN Money,
“The 32 analysts offering 12-month price forecasts for Apple
Inc have a median target of 175.00, with a high estimate of
245.00 and a low estimate of 140.00. The median estimate
represents a +0.44% increase from the last price of 174.23”
(para. 1). The analyst's average revenue estimate for 2020 is
between 10.62 to 14.49 per share with a consensus estimate of
12.90. One significant news items and press releases made by
the company today was the announcement of Apple is to offer
interest-free iPhone financing in China to try and get iPhone
sales up. There is also a rumor out there that Apple may not
have a 5G iPhone until 2020.
References
Investing Answers. (n.d.). Ticker Symbol. Retrieved from
https://investinganswers.com/financial-dictionary/stock-
market/ticker-symbol-4969
The Motley Fool. (n.d.). What Is Market Capitalization?.
Retrieved from https://www.fool.com/knowledge-center/market-
capitalization.aspx
Investopedia. (2019). Beta Definition. Retrieved from

4. https://www.investopedia.com/terms/b/beta.asp
CNN Money. (2019). Apple Inc (NASDAQ:AAPL). Retrieved
from
https://money.cnn.com/quote/forecast/forecast.html?symb=aapl