Presentation on theme: "Apple Inc. (AAPL) Covering Analyst: Cameron Schwartz"— Presentation transcript:
Apple Inc. (AAPL) Covering Analyst: Cameron Schwartz email@example.com
Company Overview ›Incorporated in 1977 to sell personal computer kits by Steve Jobs and Steve Wozniak ›Jobs leaves company in 1985 ›Jobs returns in 1996, becomes CEO in 1997 ›iPod launch in 2001 sets path for series of revolutionary product launches ›Largest publicly traded corporation by market capitalization: $554.4 Billion –More than 4% of S&P 500 MarketCap since February
Revenue Model ›Percentage of Revenue method ›Product Segment –Slowing year-over-year growth –Strong growth from iPhone & iPad –Slow/declining growth from iPod, Desktops, Portables –Unable to predict new products ›Apple TV? ›Geographic Segment –Americas consistent –Asia-Pacific growing into 2 nd largest geographic segment –Europe continues to slow
Working Capital Model ›Projected by Percentage of Revenue
DCF Assumptions ›COGS: % of Sales, Increases in Q1 and Q4 annually due to projected new product iterations ›R&D: % of Sales, Increase as Apple continues to pursue introducing innovative products ›SG&A: % of Sales, Historical rates based on number of retail stores opened. ›Depreciation: Straight line depreciated ›Acquisitions: % of Revenue, conservative rate
Recommendation ›Based on my current valuation I recommend a hold of Apple stocks for both portfolios ›Apple’s is viewed as a premium product by all consumers and is positioned well to capitalize on international expansion, especially in China
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