Are Apple shares (stock) overpriced?
Using chapter the stock valuation techniques developed in chapter 9.1 – 9.3, as a class, debate the current price of the stock and discuss what you think the stock price should be.
1. What are the limitations of the stock valuation techniques in pricing Apple stock?
2. Which valuation technique outlined in 9.2 and 9.3 is best for valuing Apple share price?
3. What price do you think Apple stock should be (based on a valuation technique - not your opinion)
4. What discount rate (R) do you think we should apply to Apple in pricing their stock and why?
5. How fast do you think Apple will grow in the future, and on what facts and data do you base this?