Security Analysis: Security Analysis Of Apple Inc.

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Security Analysis
Common Stock (KS)
• Earnings Per Share Earnings per share is the portion of a company’s profits distributed to each share of common stock that is outstanding. Earnings per share is calculated by dividing net income by the number of total shares outstanding (Ross 26). Apple Inc.’s 10-K lists earnings per share in two categories, basic a diluted. Basic earnings per share are calculated by dividing available income to common shareholders by the weighted-average number of outstanding common stock during the period. Diluted earnings per share are calculated by dividing available income to common shareholders by the weighted-average number of outstanding common stock during a period of time but it is increased to include
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The company’s EPS have exceeded Hewlett-Packards by more than double for the previous three years, but Google has nearly double the EPS share reported by Apple during the same periods (“Revenue and EPS Summary”). In Apple’s most recent quarter they have reported an improvement on EPS of 44.5% compared to the same quarter a year ago. For the past two years the company has maintained a pattern of positive EPS growth and they are predicted to report earnings that jump to $9.13, which could contend with Google’s EPS …show more content…
is revered as a company that maintains high ratings and a shining financial reputation. Currently, Value Line rates Apple as having A++ financial strength, which is the highest possible grade. Google also has an A++ rating, but HP falls below both Apple and Google with an A rating. Balance sheet leverage, business risk, the level and direction of profits, cash flow, and earned returns, amongst other factors, determine where a company falls on the grading scale. The relative risk of Apple stock in comparison to other stocks covered by Value Line is rated as 2 out of 5 concerning safety, and the timeliness is rated at 2 out of 5. As of October 27, 2015, Apple Inc.’s stock price sits at $115.56 (Apple Inc. Value Line…). As of Apple’s most recently reported fiscal year, the company had the most profits of and Fortune 500 Company, and since 2006 the company jumped from being 159 on the list to being number 5

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