Sales 5Year Annual Avg. 30.30 6.60 65.00 EPS Qtr

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Group 6
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Founders???

• Yao Ming
• Minnie Me

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Profile of Apple

• Founded by Steve Jobs (Atari) and Steve Wozniak
  (HP)
• Incorporated in January 1977
• Started Apple in Jobs garage
• First computer was Apple I with 3 KB RAM
• Went public in 1980 with 4.6 M shares
• Both founders left Apple in 1985
• Jobs started NeXT but eventually Apple purchase
  the company

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Chairman of the Board, President and CEO
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What They Sell

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Top Sellers

• Top Sellers
• 1. iPod
• 2. Belkin TuneCast
• 3. PowerBook 12
• 4. Belkin iPod Auto Charger
• 5. 17" iMac
• 6. Mac OS X v10.2
• 7. 20" Apple Cinema Display
• 8. Final Cut Pro 4 Upgrade
• 9. Monster iSplitter
• 10. Incase Sleeve for iPod

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What they will sell next

• Power Mac G5
• iSight
• Bose QuietComfort 2 Headphones
• Logitech Z680 5.1 Speakers
• HP DesignJet 120nr Printer
• Epson StylusPro 7600 Printer
• iLife
• Kelly Slater's Pro Surfer
• QuarkXPress 6.0
• Sonica Theater - USB

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Who they sell to

• Education
• Creative
• Consumers
• Business Customers

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Industry Sector

• Industry Computer Hardware
• Sector Technology
• Market Cap of 6.866 Billion

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Reports for 2002

• HPR -0.5055
• FCFE 46,000,000
• Shares 900,000,000
• Beta1.06
• WACC 0.0779
• DCF ke -0.5054
• CAPM ke 0.1086
• Therefore, Apple is currently overpriced

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Growth Rates

• Weakness in Sales EPS

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Price Ratios

• Strength in Price/Cash flow, but may indicate
  overprice

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Financial Condition

• Good Financial Standing

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Investment Returns

• Weakness in Returns on Assets
• Strength in Return on Equity (5 Year Avg.)

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Apple compare to IBM and SP

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Model 2 With Tax
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The Big News

• CEO Gilbert Amelios rumors of resignation from
  July 7 July 10
• Weak Form

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The Big News On July 14

• Price Cut
• New innovation of faster speed in its products
• Weak Form

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The September 11th Tragedy

• September 11, 2001
• Unknown market efficiency

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Apple Vs. IBM on the timing of September 11th
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5 Year Performance
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Ratings

• StockScouter 7
• Technology A Rating
• Ownership C Rating
• Valuation C Rating
• Fundamental C Rating
• The company will outperform the market in the
  next 6 months.

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Brokers Recommendations

• Strong Buy 1
• Moderate Buy 1
• Holding 10
• Moderate Sell 0
• Strong Sell 0
• Therefore

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Therefore

• As a group we also recommend holding the stock.
• Eventhough it is over price at this moment.