Equity Valuation : Apple Inc intrinsic value and market price adjustment towards equilibrium

The main objective in this dissertation is to get an accurate estimate about Apple Inc intrinsic value in the end of the respective fiscal year (09/2012) using as valuation method the cost of capital approach. In addition, it is studied the long run relationship adjustment from market price towards...

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Bibliographic Details
Main Author: Madeira, Marco António Lourenço (author)
Format: masterThesis
Language:eng
Published: 2015
Subjects:
Domínio/Área Científica::Ciências Sociais::Economia e Gestão
Online Access:http://hdl.handle.net/10400.14/16783
Country:Portugal
Oai:oai:repositorio.ucp.pt:10400.14/16783
Description
Summary:The main objective in this dissertation is to get an accurate estimate about Apple Inc intrinsic value in the end of the respective fiscal year (09/2012) using as valuation method the cost of capital approach. In addition, it is studied the long run relationship adjustment from market price towards respective fair value, using the error correction model. Apple Inc intrinsic value was estimated to be equal to 533.912$ million taking into account 110.505$ million in cash. As a result, Apple Inc equity value per share was estimated to be equal to 568,48$. Additionally, the long run market price equilibrium would be equal to 470,96$ (assuming no changes in the intrinsic value).

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