An analyst equity research report on the Apple company

1. Structure/Format– please include all eight components outlined in the article readings (“CFA Institute_EquityResearchReportEssentials_2013”). Length of the report should be about 3-6 pages, single-spaced.

2. recasting horizon: You’re required to forecast the upcoming fiscal quarter’s financial statements (I/S and B/S are required, Statement of Cash Flow is optional). But you’re more than welcome to forecast beyond the upcoming quarter (optional & it can be fun!).

3. Valuation models: You can choose any one or two of the valuation models introduced in Dividend Discount Model(DDM), Discounted Cash Flow (DCF) , Residual Income(ROPI) Model, or market-based valuation multiples to derive intrinsic value, and use it as the basis for your stock recommendation (buy, hold, or sell).

4. Data sources: besides the SEC’s Edgar database, you can also use the library’s Mergent Investext database (https://www-mergentonline-com.proxy1.cl.msu.edu/investextfullsearch.php) for firms’ historical filings (10-k, 10-Q, etc.) and analyst research reports. You may need to play around in it for a bit. Yahoo!Finance can be another place to get more information (https://finance.yahoo.com/)

5.  one excel spreadsheet for your  financial statements forecast, and one word or pdf file for your written report.

DDM：

DCF:

ROPI:

Valuation Model：