Abstract
In order to define a reasonable value of Apple’s stocks, a number of valuation models can be considered, including FCFF model, DDM, VC method, FCFE model and multiples valuation model. In the research, we use WACC and DCF calculation to evaluate the Apple company’s further value, and judging whether it is undervalued or overvalued based on historical data and market direction. As different models and data provide various results, they have different limitations and uses. For DCF, although some of the data used in its calculations are based on people's subjective analysis of the future, its valuation serves as a baseline for the target price, making its results relatively conservative and reasonable. Based on the results generated by valuation models, we think Apple still has a great potential to develop, and we advise customers to buy or hold the stock.
Highlights
Our goal is to analyze and evaluate Apple Inc. by using its data and weighted average cost of capital (WACC) and DCFvaluation methods
Apple Inc. is a multinational technology company that is headquartered in California
Apple Inc. is one of the five biggest technology companies. iPhone are widely used by many other countries
Summary
Our goal is to analyze and evaluate Apple Inc. by using its data and WACC and DCFvaluation methods. Apple Inc. is a multinational technology company that is headquartered in California. Apple Inc. is one of the five biggest technology companies. Apple's iOS has a 60 percent share of the mobile operating system market in the United States, the highest sharefor both the iPhone and iOS operating systems [1]. Since our group members all use Apple products and people around us mostly use iPhones or iPads, we become interested in the Apple company. Most of the previous research says Apple was overvalued, but we came out with a different conclusion. We think Apple is undervalued since the coming 5G and Covid 19 in 2020 brings us a lot of new factors to value the company. The many factors that affect value make valuation more challenging and uncertain,and it made our decision to choose Apple firmer
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