ABSTRACT
This study aims to estimate the fair value of stock prices from technology-based companies listed on the National Association of Securities Dealers Automated Quotations (NASDAQ), i.e., Apple Inc. (AAPL), Alphabet Inc. (GOOG), and Microsoft Corp. (MSFT). This study uses the discounted cash flow (DCF) method with the free cash flow to firm (FCFF) approach and the relative valuation (RV) method with the price-to-book value (PBV) and price-to-earnings ratio (PER) approaches. Using the DCF–FCFF method, in the pessimistic scenario, all the shares are overvalued. In the moderate scenario, MSFT shares are overvalued while AAPL and GOOG shares are undervalued. In the optimistic scenario, all shares are undervalued. Using the RV–PER approach, in all scenarios, investors are advised to buy AAPL shares. Meanwhile, the RV–PBV approach, specifically in the pessimistic scenario, recommends buying MSFT shares and GOOG shares in two other scenarios.
