FNCE 3001 Walden University Week 4 Valuing a Stock Apple Inc Discussion

User Generated

pbyyvffnwbarf

Business Finance

FNCE 3001

Walden University

FNCE

Description

After developing a fundamental understating of stocks (i.e., what they represent, how they are obtained, etc.), a prudent investor could focus on improving his or her ability to determine the value of stocks. Investing in stocks while they are undervalued can lead to impressive returns, but buying overvalued stocks can lead to painful losses. The process of valuing stocks can be difficult and is sometimes as much of an art as it is a mathematical exercise—especially when attempting to predict future cash flows for young, growing companies. In this Discussion, you will determine the value of a stock and describe how you did so with your colleagues, as well as provide a recommendation of whether or not you would recommend buying the stock.

Note: Any stock recommendations that you or your colleagues provide in this Discussion are for educational purposes only. Professionals who provide financial and investment advice are licensed and regulated, and you should assume that your colleagues are not professional financial advisors. Unless you have expertise and experience in this area, you are strongly advised not to act on any information from this Discussion to make real investment decisions.

To prepare for this Discussion:

  • Locate a common stock to use for this Discussion. (Note: You could use the NASDAQ site from the Week 2 Discussion, or you could search for a stock on Google Finance or Yahoo Finance.)
  • Refer to this week’s Learning Resources on Stock Valuation and determine the value of the stock.
  • Review the Academic Writing Expectations for 2000/3000-Level Courses, provided in this week’s Learning Resources.

By Day 3

Post a 150- to 225-word (2- to 3-paragraph) explanation of the value of your selected common stock. In your explanation, do the following:

  • Describe the common stock that you located, including a link to the web page where you located the information about the stock.
  • Explain what the value of the stock is and describe how you determined its value.
  • Provide a rationale for why or why not you would recommend investing in the stock.
  • To support your response, be sure to reference at least one properly cited scholarly source.

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Explanation & Answer

Attached. Please let me know if you have any questions or need revisions.

Valuing a Stock: Apple Inc.
Student’s Name
Institutional Affiliation

Valuing a Stock: Apple Inc.
While the current price for AAPL (Apple Inc.) is $120.09
(https://finance.yahoo.com/quote/AAPL/), the fair price (intrinsic value) for the compa...


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