For your project, you have to write a report on the APPL stock (Apple Inc.) (6 pages without figures and tables.)
The report should contain the following:
Presentation of the company: business model, industry, its peers and the companys position within that group;
history; leadership; etc.
Fundamentals of the company: past performance of the stock; revenue and earnings and their development
over the years; appropriate financial ratios.
Price and price expectations: based on the previous section, run a DCF analysis to arrive at your best estimate
for the intrinsic value of the company and your best estimate for the share price. Clearly explain your
assumptions and provide two alternate scenarios.
The report should contain the main table of the DCF for readers to observe your calculations and assumptions.
For your DCF you need to find beta which you can do with a regression analysis, as well as the credit rating.
Risks and headwinds: your DCF is based on assumptions about the future of the company, its industry
environment, and the market and business environment. How sensitive is your analysis to this? More
specifically, what are the headwinds and risks that the company faces in its operations in the near and
medium-term future? Additionally, create a bull case and a bear case scenario in which you describe a more
positive and a more negative outcome for the future. Importantly, base your updated estimates on a narrative,
e.g., the successful or unsuccessful launch of a new product, business expansion, etc. Conclusion and
recommendation for three investors (see below). The stock report must be submitted as a word document. Use
the APA style formatting. Font size 11 are acceptable. Additionally, attach the Excel spreadsheet in which you
performed your analysis. You have to create your own excel spreadsheet; that means, downloading, using and
submitting prepared DCF Excel documents from the Internet will lead to a loss of points. Please make sure
your text is grammatically correct and free of spelling mistakes, as such diligence is going to be taken into
account for your final grade as well
Sample Solution