An Conditional Study on Titan v/s Timex with respect to STP and Consumer Behaviour Prepared pertaining to: Prof. Subrat Sahu (Marketing Management)…...Read
Assignment 6th Yajing Cao
1 . Current Market Evaluation of Apple Inc.
(Charts from Bing Finance and YCharts)
Through the charts previously mentioned, we can realize that Apple's current PE is 16. 7, much lower than its past five years' average 3. 32. Also, its PEG Ratio can be 0. sixty four, which is a incredibly healthy one.
What's more, consider Apple's some key advantages into account: (1) Apple contains a strong name brand, loyal customer base, and defensible installed bottom. (2) iPod is still a major traffic and revenue driver for you’re able to send computer goods. (3) Kick off of video Nano ipod touch has enhanced revenue and benefited the corporation as a whole. (4) iPhone provides enabled Apple to shift portable players business for growth, and enter the sophisticated segment with the smart phone market at the same time. (5) Apple has an excellent funds position and balance sheet without having debt.
I think Apple happens to be trading for a discounted, low-cost or depressed valuation, what I are essentially concluding is that the current market price as based on the current state of supply-demand parity is underpricing shares of Apple based on several higher projected future worth. 2 . Comparison to the peers
Kind statistics above, compared to its peers, Apple is undervalued.
3. Goal investor designs
According to Apple's functionality and industrial feature, Let me choose Expansion Investors as my audience. The reason is that Apple has high average revenue and income growth year-over-year, due to its technology development. Likewise, Apple failed to have returns these two years by reinvesting in fresh opportunities. Although it is undervalued currently, its 16. six P/E Ratio is comparably high than its competitor such as RIM and HPQ. All of these features are mementos of Growth Investors.