Financial Analysis Assignment
FINANCIAL ANALYSIS
Comparative Study: Apple Inc. vs Samsung Electronics
Part I: Ratio Analysis | Part II: Technical Analysis | Part III: Hedging Strategy
Companies: Apple Inc. (NASDAQ: AAPL) & Samsung Electronics (KRX: 005930)
Sector: Consumer Electronics / Technology Hardware
December 2025
Kartik Sehgal
2201104
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Financial Analysis Assignment
PART I: RATIO ANALYSIS (8 Marks)
1.1 Company Overview
Apple Inc. is a multinational technology corporation headquartered in Cupertino, California,
designing consumer electronics (iPhone, iPad, Mac), software, and services. Market cap: ~$4.2
trillion.
Samsung Electronics is a South Korean multinational, the world's largest manufacturer of DRAM,
NAND flash, and smartphones. It operates through Device Solutions and Device eXperience
divisions.
1.2 Financial Data Summary (FY 2024-25)
Financial Metric
Revenue (TTM)
Apple Inc.
$416.16 Billion
Samsung Electronics
KRW 315.56T (~$231B)
Net Income
$112.01 Billion
KRW 32.55T (~$24B)
EPS (TTM)
$7.49
KRW 4,837
Current Price
$279.00
KRW 108,400
Total Debt
$98.66 Billion
KRW 16.67T (~$12B)
Total Equity
$73.73 Billion
KRW 396T (~$290B)
1.3 Ratio Calculations
Ratio 1: P/E Ratio (Valuation)
Formula: P/E = Price per Share ÷ EPS
Company
Apple
Calculation
$279 ÷ $7.49
P/E Ratio
37.25x
Samsung
₩108,400 ÷ ₩4,837
22.41x
Interpretation: Samsung's lower P/E (22.41x vs 37.25x) suggests better value. Apple's premium
reflects brand strength and services growth.
Ratio 2: Debt-to-Equity (Solvency)
Apple
Company
Calculation
$98.66B ÷ $73.73B
1.34x
D/E Ratio
Samsung
₩16.67T ÷ ₩396T
0.04x
Interpretation: Samsung has virtually no debt (0.04x D/E). Apple's higher leverage (1.34x) funds
share buybacks but remains manageable.
Ratio 3: Current Ratio (Liquidity)
Apple
Company
0.89x
Current Ratio
Assessment
Below 1.0 (Strategic)
Samsung
2.62x
Strong (>2.0)
Ratio 4: Inventory Turnover (Efficiency)
Company
Apple
Turnover
38.64x
Days Inventory
~9 days
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Financial Analysis Assignment
Samsung
3.88x
~94 days
1.4 Investment Recommendation
Selected: Samsung Electronics — Better valuation (P/E 22.41x), exceptional solvency (D/E
0.04x), strong liquidity (CR 2.62x), and AI/HBM growth catalysts.
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Financial Analysis Assignment
PART II: TECHNICAL ANALYSIS (7 Marks)
Stock: Apple Inc. (AAPL) | Period: June 2025 – December 2025 (6 months)
2.1 Six-Month Candlestick Chart
Ascending triangle
Bullish trend
=
memor
Al
·*
Figure 1: AAPL 6-Month Daily Candlestick Chart with Technical Indicators (Source: Yahoo Finance)
2.2 Price Overview
52-Week High
Metric
Value
$288.62 (December 2025)
52-Week Low
$169.21 (April 8, 2025)
Current Price
$279.00
2.3 Chart Patterns Identified
Pattern 1: Cup and Handle (April – November 2025)
•
•
Location: $169.21 (cup bottom) to $288 (breakout zone)
Psychology: Cup represents accumulation; rounded bottom shows shift from bearish to
bullish sentiment.
Pattern 2: Bullish Flag (November 2025)
•
•
Location: $275-$285 consolidation after rally from $240
Psychology: Brief profit-taking pause; typically resolves upward in direction of prior trend.
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Financial Analysis Assignment
2.4 Technical Indicators
Indicator 1: RSI (14-period)
RSI Reading
Value
Current
70.9
Signal
OVERBOUGHT
At April Low
~28
OVERSOLD (Buy)
Indicator 2: MACD (12,26,9)
•
•
•
MACD Line: +3.48 (Above zero = Bullish)
Signal: MACD above Signal Line = BUY
Golden Cross: 50-day MA > 200-day MA confirms bullish trend
2.5 Entry/Exit Strategy
Parameter
Level
Entry
$275.00
Justification
Near 50-day MA; pullback from
overbought
Target
$310.00
Cup & Handle measured move
Stop Loss
$260.00
Below 200-day MA
Risk-Reward: Profit $35 (12.7%) vs Risk $15 (5.5%) = 1:2.33 (Favorable)
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Financial Analysis Assignment
PART III: HEDGING STRATEGY (5 Marks)
3.1 Position Summary
Detail
Stock
Value
Apple Inc. (AAPL) - LONG
Entry/Quantity
$275.00 × 100 shares = $27,500
Target/Stop
Target: $310 | Stop: $260
3.2 Risk Identification
Primary Risk: DOWNSIDE PRICE RISK
Sources: Disappointing earnings, regulatory actions, market correction, China slowdown, AI
competition.
Max Unhedged Loss: $27,500 (100%) if stop-loss fails
3.3 Hedging Strategy: Protective Put
Strategy: BUY PROTECTIVE PUT
Contract Detail
Option Type
Specification
PUT (Buy to Open)
Strike Price
$265.00 (3.6% OTM)
Expiration
January 17, 2026
Premium
~$5.50/share × 100 = $550
3.4 Strike Selection Rationale
1. Cost Efficiency: OTM put costs ~$550 vs ~$900 for ATM
2. Support Alignment: $265 between 50-day and 200-day MAs
3. Acceptable Deductible: 3.6% 'deductible' keeps premium affordable
3.5 Scenario Analysis
Scenario
Target
Price
$310
Stock P&L
+$3,500
Put P&L
-$550
Net
+$2,950
Entry
$275
$0
-$550
-$550
Strike
$265
-$1,000
-$550
-$1,550
Crash
$180
-$9,500
+$7,950
-$1,550
Key Insight: Max loss CAPPED at $1,550 (5.6%) regardless of crash severity. Without hedge, $180
crash = $9,500 (34.5%) loss!
3.6 Hedge Summary
•
•
•
Hedge Cost: $550 (2% of investment)
Max Loss (Hedged): $1,550 (5.6%)
Upside: Unlimited (minus premium)
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Financial Analysis Assignment
CONCLUSION
This analysis demonstrates fundamental, technical, and derivatives-based approaches to equity
analysis.
4. Fundamental: Samsung wins on valuation (P/E 22.41x), solvency (D/E 0.04x), and liquidity
(CR 2.62x). Apple excels in inventory efficiency (38.64x turnover).
5. Technical: AAPL shows bullish Cup & Handle, positive MACD, and Golden Cross. Entry
$275 targeting $310 offers 1:2.33 risk-reward.
6. Hedging: Protective put at $265 limits max loss to $1,550 (5.6%) while preserving unlimited
upside for $550 (2%) cost.
>
Disclaimer: For educational purposes only. Not investment advice. Past performance does not guarantee
future results.
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