| Summary: | This dissertation presents a valuation of Apple Inc., an American company that sits amongst the largest companies in the world, in market capitalization terms. Although it started as a computer company, back in 1976, nowadays it is best known for its smartphone flagship – the iPhone, introduced in 2007, it revolutionized the entire mobile phone industry. Today, the iPhone represents about 66% of total sales, however there are other products in Apple’s product line that are considered by a large number of people to be the best in its category, such as the MacBook, the iMac, the iPad, the apple watch and others. In this Equity valuation of Apple, I decided to use three different methods: the Discounted Cash Flow method, the Dividend Discount Model and Relative Valuation. Since all valuation models have their own assumptions and corresponding advantages and disadvantages, each of these approaches achieved different results, however I believe the most accurate was the one provided by the Discounted Cash Flow model, through which I obtained a target price of $196 per share. In order to better evaluate the valuation performed, another valuation of Apple was considered as a comparison research, to understand different assumptions and why I should have or have not made different assumptions in my valuation. The other research used was the Goldman Sachs research report.
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