AAPL AMZN (a) Calculate the price-to-book ratio for AAPL and AMZN respectively: Market Value of Equity / Capitalization (USD billions) Shares Outstanding (billions) $1,960 4.2756 $1,584 0.5009 P/B AAPL P/B AMZN Last Full Year Balance Sheet Items Book Value of Equity (USD billions) Book Value of Assets (USD billions) $113.82 $317.34 $73.73 $258.31 (b) Calculate the trailing price-to-earnings ratio for AAPL and AMZN respectively: Last Full Year Income Statement & Cash Flow Items Total Revenue (Sales, USD billions) Net Income (USD billions) Depreciation Expense (USD billions) Capital Expenditures (USD billions) Change in Working Capital (USD billions) $273.BB $58.42 $11.53 $8.30 $0.83 $321.78 $13.18 $22.28 Trailing P/E AAPL Trailing P/E AMZN $24.26 $3.63 (c) Calculate the forward price-to-earnings ratio for AAPL and AMZN respectively: Forward P/E AAPL Forward P/E AMZN Market Expectations for Coming Year Expected Total Revenue Analyst Consensus Estimate, USD billions) Expected Net Income (Analyst Consensus Estimate, USD billions) Expected Net Income Growth Rate (Annual, Percentage) $305.89 $64.53 11.47% $432.53 $22.76 23.82% d) Using the Forward P/E calculated in part (c), calculate the price-to-earnings growth (PEG) ratio for AAPL and AMZN respectively PEG Ratio AAPL PEG Ratio AMZN e) Calculate the price-to-free cash flow ratio for AAPL and AMZN respectively (Specifically, use market value and trailing free cash flow to the firm. You should use Net Income rather than EBIT*11-Tax Ratelin vour calculations): P/FCF AAPL P/FCF AMZN f) Based on your answers in (a) through (e), would you rather buy AAPL, AMZN, or neither? Briefly explain your answer AAPL/AMZN / Neither Why? (1 or 2 Sentences) AAPL AMZN (a) Calculate the price-to-book ratio for AAPL and AMZN respectively: Market Value of Equity / Capitalization (USD billions) Shares Outstanding (billions) $1,960 4.2756 $1,584 0.5009 P/B AAPL P/B AMZN Last Full Year Balance Sheet Items Book Value of Equity (USD billions) Book Value of Assets (USD billions) $113.82 $317.34 $73.73 $258.31 (b) Calculate the trailing price-to-earnings ratio for AAPL and AMZN respectively: Last Full Year Income Statement & Cash Flow Items Total Revenue (Sales, USD billions) Net Income (USD billions) Depreciation Expense (USD billions) Capital Expenditures (USD billions) Change in Working Capital (USD billions) $273.BB $58.42 $11.53 $8.30 $0.83 $321.78 $13.18 $22.28 Trailing P/E AAPL Trailing P/E AMZN $24.26 $3.63 (c) Calculate the forward price-to-earnings ratio for AAPL and AMZN respectively: Forward P/E AAPL Forward P/E AMZN Market Expectations for Coming Year Expected Total Revenue Analyst Consensus Estimate, USD billions) Expected Net Income (Analyst Consensus Estimate, USD billions) Expected Net Income Growth Rate (Annual, Percentage) $305.89 $64.53 11.47% $432.53 $22.76 23.82% d) Using the Forward P/E calculated in part (c), calculate the price-to-earnings growth (PEG) ratio for AAPL and AMZN respectively PEG Ratio AAPL PEG Ratio AMZN e) Calculate the price-to-free cash flow ratio for AAPL and AMZN respectively (Specifically, use market value and trailing free cash flow to the firm. You should use Net Income rather than EBIT*11-Tax Ratelin vour calculations): P/FCF AAPL P/FCF AMZN f) Based on your answers in (a) through (e), would you rather buy AAPL, AMZN, or neither? Briefly explain your answer AAPL/AMZN / Neither Why? (1 or 2 Sentences)
