Should we buy all of Apple's stock now

Buying Apple Stock: Everything You Should Know About Apple

Fundamental Analysis On Apple: How To Analyze Apple

Before deciding whether to buy, sell, or trade Apple stock, it is important that you conduct a thorough fundamental analysis. Fundamental analysis is an in-depth method of analyzing a company's financial and external factors in order to better understand the value of its stocks. This method often uses a variety of metrics to determine the stock value and predict possible price fluctuations, such as price / earnings ratio, relative dividend, and return on equity (ROE).

Apple's price / earnings ratio

The price / earnings ratio is one of the ways that can be used to evaluate the value of the stock. Basically, it explains how much you need to spend to make $ 1 in profit. A high price / earnings ratio compared to the competition can mean that the stocks are overvalued.

The price / earnings ratio is calculated by dividing the market value per share by the earnings per share. Earnings per share can be determined by dividing the company's total earnings by the number of shares issued.

Apple's relative dividend yield

Dividend income consists of the company's annual dividend payments, which is the proportion of profits paid to shareholders compared to the share price. The relative dividend yield is the dividend yield of a single stock compared to the overall index, in this case the US Tech 100. To calculate Apple's relative dividend, the dividend yield is first calculated. For this purpose, the annual dividend is divided by the current share price. Then the dividend yield is divided by the average dividend yield of the US Tech 100. A low relative dividend yield could indicate the stocks are overvalued relative to competitors' stocks.

Apple's return on equity

Apple's return on equity (ROE) measures the percentage of return on equity. It is determined by dividing the net income by the stakeholder's equity. A low return on equity is a possible indicator of overvalued stocks. Because it would show that Apple would generate too little income relative to the investor's investment.

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