Analysis of Market Value of Consumer Electronics Companies in the U.S.: A Case Study of Apple Inc.
Year: 2025
Type: article
Abstract: This paper investigates the evaluation of market value within the consumer electronics industry and mainly focuses on Apple Inc. as a case study. The process of market value evaluation in this research entails financial ratio analysis, accounting analysis, asset structure review, and analysis of brand and equity value. Apple's unique combination of strong brand identity, effective management of assets, and strong financial performance makes it a competitive firm with considerable market value. Apple exhibits robust profitability highlighted by high average profitability ratios. Its brand equity has significantly grown in 2024. Intrinsic valuation indicates a slight overvaluation with potential loss of 1.8% but with a long-term potential gain of 17.3%. Moreover, its share price has grown tremendously over the past decade, indicating investor’s confidence in the company. The industry review confirms that U.S. consumer electronics firms now invest heavily in research and design, software platforms, and subscription services, so their balance sheets understate real value while their share prices reflect future growth from ecosystems. Overall, this study underlines that market value in this sector is guided mainly by expected innovation, cash-generating ability, and brand equity rather than by conventional measures of net assets. These conclusions help investors, managers, and policymakers understand why intangible resources should be monitored as closely as financial ratios.
Author: Jingyu Liu
Institution: University College Dublin
Language: English
Subfield: Strategy and Management
Domain: Social Sciences
Open Access status: hybrid
OpenAlex ID: W4412184148