Find the financial statements for a publicly traded company, and examine its fin

Question

Find the financial statements for a publicly traded company, and examine its financial statements from the perspective of a potential investor. Find or prepare the price/earnings ratio, the dividend payout ratio, the dividend yield, book value, and earnings per share, and identify whether you would consider this company a good investment, with regard to your personal investment objectives. Explain why (approximately 300 words) you would/would not invest in this company. Post a link to the financial statements with your initial post, and include the company name in the subject line. using any publicly traded company

Explanation / Answer

We choose Apple Inc (AAPL) as our company

Earnings per share = $10.34/share

Dividend paid (till most recent) = 0.63*4 = 2.52

Dividend payout ratio 2.52/10.34 = 24.37%

Dividend Yield = 2.52/190.40 = 1.33%

Book Value per share = $25.67

Price to Book =190.40/25.67 = 7.41 times book

Price earnings ratio = 18.42

Yes, I would definitely go ahead and buy apple Inc. on dips from the current share price. Whenever there is some negative news and the stock price dips to around 170, I would definitely go ahead and buy the share. The consensus price target for Apple in 1 year is about $205/share which would generate about 20% from the level of $170.

The net income is consistently increasing along with good revenue growth. The business has been giving a stable dividend over the years. So you can get the current income and also capital appreciation on the stock price.

Apart from this apple is a portfolio stock and can be a part of your long term portfolio. The top management which is world class, the niche products and the brand appeal worldwide would make Apple continue to be a leader in the electronics market for the next several years. Also, the stock has performed consistently over the last five years with a consistent above average or above market return. Hence this would be a portfolio stock which can give good returns over the long term.

The link for the company financials: https://finance.yahoo.com/quote/AAPL/financials?p=AAPL

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