What is the beta of Apple stock?
Apple's beta is 1.24. c) (Expected Return of the Market - Risk-Free Rate of Return) is also called market premium. GuruFocus requires market premium to be 6%.
What is Apple's market premium?
Apple's beta is 1.24. c) (Expected Return of the Market - Risk-Free Rate of Return) is also called market premium. GuruFocus requires market premium to be 6%. 3. Cost of Debt: GuruFocus uses last fiscal year end Interest Expense divided by the latest two-year average debt to get the simplified cost of debt.
How is the expected market return and risk-free rate calculated?
Sector ID - The unique sector id assigned to a company. The expected market return is typically based on the S&P 500 while the risk-free rate is calculated from current or historical treasury yields. The default market risk premiums used in Finbox valuation models is taken from the Duff & Phelps’ cost of capital handbook .
What is the averaged Apple stock price for month 350?
Averaged Apple stock price for month 350. Price at the end 353, change for April 3.82%. More Stock Forecasts... Apple stock predictions for May 2023. The forecast for beginning of May 353.
What is the risk-free rate of Apple stock?
DCFDCF LeveredShare price$ 144.94Tax Rate13.30After-tax Cost of Debt1.84%Risk-Free RateMarket Risk Premium10 more rows
What is Apple stock fair value?
How does Apple's Fair Value (Finbox) benchmark against competitors?NameFair Value (Finbox)Apple Inc.150.25Amazon.com, Inc.154.28Netflix, Inc.286.81Microsoft Corporation312.758 more rows
What is WACC for Apple?
Apple WACC - Weighted Average Cost of Capital The WACC of Apple Inc (AAPL) is 8.2%. The Cost of Equity of Apple Inc (AAPL) is 8.45%.
What is Apple's valuation method?
Compared to the current market price of 155.35 USD, Apple Inc is. Relative valuation is one of two methods of placing a monetary value on a company; the other is Discounted Cash Flow valuation method. We use a combination of these two methods to calculate the Intrinsic Value of stock as accurately as possible.
Is Apple stock overvalued?
As of this writing, we think Microsoft's stock is about 23% undervalued, while Apple's stock is 14% overvalued.
What is the equity risk premium of Apple?
Apple's equity risk premium (operating country) is 4.2%.
How is risk-free rate calculated?
To calculate the real risk-free rate, subtract the inflation rate from the yield of the Treasury bond matching your investment duration.
What is Apple's free cash flow?
Apple free cash flow for the twelve months ending March 31, 2022 was , a year-over-year. Apple annual free cash flow for 2021 was $92.953B, a 26.7% increase from 2020. Apple annual free cash flow for 2020 was $73.365B, a 24.57% increase from 2019.
What is the fair value of Google stock?
As of today (2022-07-22), Alphabet(Google)'s share price is $108.36. Alphabet(Google)'s Peter Lynch fair value is $138.23.
What is MSFT fair value?
As of today (2022-07-19), Microsoft's share price is $259.53. Microsoft's Peter Lynch fair value is $196.10.
How do you calculate intrinsic value of Apple stock?
The total value is the sum of cash flows for the next five years and the discounted terminal value, which results in the Total Equity Value, which in this case is US$720.27B. To get the intrinsic value per share, we divide this by the total number of shares outstanding.
Capital Asset Pricing Model (CAPM)
Rates of Return
Capital asset pricing model (CAPM) indicates what should be the expected or required rate of return on risky assets like Apple Inc. common stock.
The calculation
1 Data in US$ per share of common stock, adjusted for splits and stock dividends.
Important assumptions
We are going to use a two-stage DCF model, which, as the name states, takes into account two stages of growth. The first stage is generally a higher growth period which levels off heading towards the terminal value, captured in the second 'steady growth' period.
Next Steps
Now the most important inputs to a discounted cash flow are the discount rate, and of course, the actual cash flows. Part of investing is coming up with your own evaluation of a company's future performance, so try the calculation yourself and check your own assumptions.
