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Friday, July 22, 2016

Overpriced shares. Trends. Apple.

Stock market. Value investing.

We analyze the trend of shares Apple Inc (AAPL)

Today's price               - 99,43 $
P/E                              - 11.06
P/B                              - 4.18
Return on Equity         -  39.06 %
Book Value Per Share - 23.82 $

The calculation of the coefficient of Benjamin Graham:
P/E * P/B = 22,5 (or less)
11.06 * 4.18 = 46.23 - more than the desired value 22,5.

According to the conservative theory of value investing buy shares of the company are not suitable. The share price is high.

Unsophisticated investor with a small amount of money to invest in this company is risky. You should wait for price reductions.
Buying at this price can afford the very wealthy people whose finances allow to survive the next crisis.
It should be noted excellent indicator Return on Equity = 39.06 %. 
This figure the company from year to year remains constant at a high level of approximately 40%.





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