Approaches to common stock valuation

Yernur Kaparov

Bachelor's thesis

Abstract:

In this thesis, the author has focused on the valuation methods of shares for the Apple Incorporation company. The company is deeply involved in the production of electronical devices and works quite efficiently for the past 11 years. Thus, it will be interesting to evaluate and make a projection for the year of 2026. The author relies on the theoretical and literature review of financial analysts and famous economists. The theoretical part also covers the valuation models and methods which are eventually applied within the practical part. There are many determinants to consider, such macroeconomic factors of a chosen company and where it operates, however, the author has projected the valuation based on the three basic financial statements, such as: Balance Sheet statement, Income Statement and Cash Flow Statement. The valuation models which were considered were: Free Cash Flow to Firm, Free Cash Flow to Equity and Discounted Dividend Model. The rest of the variables such as: Net Working Capital, Net Debt, CAPEX was either calculated or retrieved from the above-mentioned financial statements.

Keywords

Common stock, absolute stock valuation, relative stock valuation, equity valuation, makret value, intrinsic value

Language used: English

Date on which the thesis was submitted / produced: 30. 11. 2022

Thesis defence

• Supervisor: Ing. Jana Kalabisová, Ph.D.

Czech University of Life Sciences Prague

Faculty of Economics and Management

Bachelor programme:
Economics and Management