Intrinsic Stock Value Apple Inc., dividends per share (DPS) forecast Year Value DPS(t) or TV(t) Present value at 14.03% 0 DPS(0)* 1.98 1 DPS(1) 2.58 2.26 2 DPS(2) 3.24 2.49 3 DPS(3) 3.93 2.65 4 DPS(4) 4.58 2.71 5 DPS(5) 5.14 2.66 5 TV(5) 306.54 159.17 Intrinsic value of Apple's common stock (per share) $171.94 171.94 Current share price $118.30 117.34 * DPS0 = Sum of last year dividends per share of Apple's common stock. The intrinsic value of Apple's common stock is 171.94 and the cuurent share price is 117.34. It means that stock of Apple is undervalued. There are many reasons to suggest that Apple (NASDAQ:AAPL) stock is undervalued. Apple's PE has declined from over 17 in April to current PE of 12.7 while its future prospects remained unchanged if not improved. Its relative valuation too appears cheaper than its competitors. Following are the reasons for undervaluation of Apple Stock. …show more content…
Apple has had an average of ~ 35% growth rate in profit margins in the last 5-years. Apple has great management execution, and it has given investors reasons to be