Stock Analysis on Net

Intuit Inc. (NASDAQ:INTU)

Capital Asset Pricing Model (CAPM) 

Microsoft Excel

Rates of Return

Intuit Inc., monthly rates of return

Microsoft Excel
Intuit Inc. (INTU) Standard & Poor’s 500 (S&P 500)
t Date PriceINTU,t1 DividendINTU,t1 RINTU,t2 PriceS&P 500,t RS&P 500,t3
Aug 31, 2017 $141.45 2,471.65
1. Sep 30, 2017 $142.14 0.49% 2,519.36 1.93%
2. Oct 31, 2017 $151.02 $0.39 6.52% 2,575.26 2.22%
3. Nov 30, 2017 $157.22 4.11% 2,647.58 2.81%
. . . . . . .
. . . . . . .
. . . . . . .
70. Jun 30, 2023 $458.19 9.32% 4,376.86 4.71%
71. Jul 31, 2023 $511.70 $0.78 11.85% 4,588.96 4.85%
Average (R): 2.18% 1.00%
Standard deviation: 7.67% 5.07%
Intuit Inc. (INTU) Standard & Poor’s 500 (S&P 500)
t Date PriceINTU,t1 DividendINTU,t1 RINTU,t2 PriceS&P 500,t RS&P 500,t3
Aug 31, 2017 $141.45 2,471.65
1. Sep 30, 2017 $142.14 0.49% 2,519.36 1.93%
2. Oct 31, 2017 $151.02 $0.39 6.52% 2,575.26 2.22%
3. Nov 30, 2017 $157.22 4.11% 2,647.58 2.81%
4. Dec 31, 2017 $157.78 0.36% 2,673.61 0.98%
5. Jan 31, 2018 $167.90 $0.39 6.66% 2,823.81 5.62%
6. Feb 28, 2018 $166.86 -0.62% 2,713.83 -3.89%
7. Mar 31, 2018 $173.35 3.89% 2,640.87 -2.69%
8. Apr 30, 2018 $184.79 $0.39 6.82% 2,648.05 0.27%
9. May 31, 2018 $201.60 9.10% 2,705.27 2.16%
10. Jun 30, 2018 $204.31 1.34% 2,718.37 0.48%
11. Jul 31, 2018 $204.24 $0.39 0.16% 2,816.29 3.60%
12. Aug 31, 2018 $219.47 7.46% 2,901.52 3.03%
13. Sep 30, 2018 $227.40 3.61% 2,913.98 0.43%
14. Oct 31, 2018 $211.00 $0.47 -7.01% 2,711.74 -6.94%
15. Nov 30, 2018 $214.53 1.67% 2,760.17 1.79%
16. Dec 31, 2018 $196.85 -8.24% 2,506.85 -9.18%
17. Jan 31, 2019 $215.82 $0.47 9.88% 2,704.10 7.87%
18. Feb 28, 2019 $247.13 14.51% 2,784.49 2.97%
19. Mar 31, 2019 $261.41 5.78% 2,834.40 1.79%
20. Apr 30, 2019 $251.06 $0.47 -3.78% 2,945.83 3.93%
21. May 31, 2019 $244.85 -2.47% 2,752.06 -6.58%
22. Jun 30, 2019 $261.33 6.73% 2,941.76 6.89%
23. Jul 31, 2019 $277.31 $0.47 6.29% 2,980.38 1.31%
24. Aug 31, 2019 $288.36 3.98% 2,926.46 -1.81%
25. Sep 30, 2019 $265.94 -7.78% 2,976.74 1.72%
26. Oct 31, 2019 $257.50 $0.53 -2.97% 3,037.56 2.04%
27. Nov 30, 2019 $258.89 0.54% 3,140.98 3.40%
28. Dec 31, 2019 $261.93 1.17% 3,230.78 2.86%
29. Jan 31, 2020 $280.38 $0.53 7.25% 3,225.52 -0.16%
30. Feb 29, 2020 $265.85 -5.18% 2,954.22 -8.41%
31. Mar 31, 2020 $230.00 -13.49% 2,584.59 -12.51%
32. Apr 30, 2020 $269.81 $0.53 17.54% 2,912.43 12.68%
33. May 31, 2020 $290.32 7.60% 3,044.31 4.53%
34. Jun 30, 2020 $296.19 2.02% 3,100.29 1.84%
35. Jul 31, 2020 $306.37 $0.53 3.62% 3,271.12 5.51%
36. Aug 31, 2020 $345.39 12.74% 3,500.31 7.01%
37. Sep 30, 2020 $326.21 -5.55% 3,363.00 -3.92%
38. Oct 31, 2020 $314.68 $0.59 -3.35% 3,269.96 -2.77%
39. Nov 30, 2020 $352.02 11.87% 3,621.63 10.75%
40. Dec 31, 2020 $379.85 7.91% 3,756.07 3.71%
41. Jan 31, 2021 $361.23 $0.59 -4.75% 3,714.24 -1.11%
42. Feb 28, 2021 $390.14 8.00% 3,811.15 2.61%
43. Mar 31, 2021 $383.06 -1.81% 3,972.89 4.24%
44. Apr 30, 2021 $412.16 $0.59 7.75% 4,181.17 5.24%
45. May 31, 2021 $439.09 6.53% 4,204.11 0.55%
46. Jun 30, 2021 $490.17 11.63% 4,297.50 2.22%
47. Jul 31, 2021 $529.97 $0.59 8.24% 4,395.26 2.27%
48. Aug 31, 2021 $566.11 6.82% 4,522.68 2.90%
49. Sep 30, 2021 $539.51 -4.70% 4,307.54 -4.76%
50. Oct 31, 2021 $625.99 $0.68 16.16% 4,605.38 6.91%
51. Nov 30, 2021 $652.30 4.20% 4,567.00 -0.83%
52. Dec 31, 2021 $643.22 -1.39% 4,766.18 4.36%
53. Jan 31, 2022 $555.23 $0.68 -13.57% 4,515.55 -5.26%
54. Feb 28, 2022 $474.37 -14.56% 4,373.94 -3.14%
55. Mar 31, 2022 $480.84 1.36% 4,530.41 3.58%
56. Apr 30, 2022 $418.75 $0.68 -12.77% 4,131.93 -8.80%
57. May 31, 2022 $414.46 -1.02% 4,132.15 0.01%
58. Jun 30, 2022 $385.44 -7.00% 3,785.38 -8.39%
59. Jul 31, 2022 $456.17 $0.68 18.53% 4,130.29 9.11%
60. Aug 31, 2022 $431.78 -5.35% 3,955.00 -4.24%
61. Sep 30, 2022 $387.32 -10.30% 3,585.62 -9.34%
62. Oct 31, 2022 $427.50 $0.78 10.58% 3,871.98 7.99%
63. Nov 30, 2022 $407.59 -4.66% 4,080.11 5.38%
64. Dec 31, 2022 $389.22 -4.51% 3,839.50 -5.90%
65. Jan 31, 2023 $422.67 $0.78 8.79% 4,076.60 6.18%
66. Feb 28, 2023 $407.18 -3.66% 3,970.15 -2.61%
67. Mar 31, 2023 $445.83 9.49% 4,109.31 3.51%
68. Apr 30, 2023 $443.95 $0.78 -0.25% 4,169.48 1.46%
69. May 31, 2023 $419.12 -5.59% 4,179.83 0.25%
70. Jun 30, 2023 $458.19 9.32% 4,376.86 4.71%
71. Jul 31, 2023 $511.70 $0.78 11.85% 4,588.96 4.85%
Average (R): 2.18% 1.00%
Standard deviation: 7.67% 5.07%

Show all

1 Data in US$ per share of common stock, adjusted for splits and stock dividends.

2 Rate of return on common stock of INTU during period t

3 Rate of return on S&P 500 (the market portfolio proxy) during period t


Variance and Covariance

Intuit Inc., calculation of variance and covariance of returns

Microsoft Excel
t Date RINTU,t RS&P 500,t (RINTU,tRINTU)2 (RS&P 500,tRS&P 500)2 (RINTU,tRINTU)×(RS&P 500,tRS&P 500)
1. Sep 30, 2017 0.49% 1.93% 2.85 0.86 -1.57
2. Oct 31, 2017 6.52% 2.22% 18.88 1.48 5.28
3. Nov 30, 2017 4.11% 2.81% 3.72 3.26 3.48
. . . . . . .
. . . . . . .
. . . . . . .
70. Jun 30, 2023 9.32% 4.71% 51.06 13.77 26.51
71. Jul 31, 2023 11.85% 4.85% 93.55 14.77 37.17
Total (Σ): 4,115.51 1,800.45 2,125.44
t Date RINTU,t RS&P 500,t (RINTU,tRINTU)2 (RS&P 500,tRS&P 500)2 (RINTU,tRINTU)×(RS&P 500,tRS&P 500)
1. Sep 30, 2017 0.49% 1.93% 2.85 0.86 -1.57
2. Oct 31, 2017 6.52% 2.22% 18.88 1.48 5.28
3. Nov 30, 2017 4.11% 2.81% 3.72 3.26 3.48
4. Dec 31, 2017 0.36% 0.98% 3.31 0.00 0.04
5. Jan 31, 2018 6.66% 5.62% 20.11 21.29 20.70
6. Feb 28, 2018 -0.62% -3.89% 7.82 23.99 13.69
7. Mar 31, 2018 3.89% -2.69% 2.93 13.63 -6.32
8. Apr 30, 2018 6.82% 0.27% 21.60 0.53 -3.40
9. May 31, 2018 9.10% 2.16% 47.89 1.34 8.01
10. Jun 30, 2018 1.34% 0.48% 0.69 0.27 0.43
11. Jul 31, 2018 0.16% 3.60% 4.08 6.75 -5.25
12. Aug 31, 2018 7.46% 3.03% 27.88 4.09 10.68
13. Sep 30, 2018 3.61% 0.43% 2.06 0.33 -0.82
14. Oct 31, 2018 -7.01% -6.94% 84.30 63.10 72.94
15. Nov 30, 2018 1.67% 1.79% 0.25 0.61 -0.39
16. Dec 31, 2018 -8.24% -9.18% 108.53 103.65 106.06
17. Jan 31, 2019 9.88% 7.87% 59.28 47.13 52.86
18. Feb 28, 2019 14.51% 2.97% 152.05 3.88 24.29
19. Mar 31, 2019 5.78% 1.79% 12.97 0.62 2.84
20. Apr 30, 2019 -3.78% 3.93% 35.47 8.57 -17.44
21. May 31, 2019 -2.47% -6.58% 21.62 57.47 35.25
22. Jun 30, 2019 6.73% 6.89% 20.74 34.69 26.82
23. Jul 31, 2019 6.29% 1.31% 16.96 0.10 1.27
24. Aug 31, 2019 3.98% -1.81% 3.27 7.91 -5.09
25. Sep 30, 2019 -7.78% 1.72% 99.03 0.51 -7.11
26. Oct 31, 2019 -2.97% 2.04% 26.53 1.08 -5.36
27. Nov 30, 2019 0.54% 3.40% 2.68 5.77 -3.93
28. Dec 31, 2019 1.17% 2.86% 1.00 3.44 -1.86
29. Jan 31, 2020 7.25% -0.16% 25.70 1.36 -5.91
30. Feb 29, 2020 -5.18% -8.41% 54.15 88.63 69.28
31. Mar 31, 2020 -13.49% -12.51% 245.28 182.66 211.67
32. Apr 30, 2020 17.54% 12.68% 236.01 136.45 179.45
33. May 31, 2020 7.60% 4.53% 29.43 12.42 19.12
34. Jun 30, 2020 2.02% 1.84% 0.02 0.70 -0.13
35. Jul 31, 2020 3.62% 5.51% 2.07 20.31 6.49
36. Aug 31, 2020 12.74% 7.01% 111.51 36.04 63.39
37. Sep 30, 2020 -5.55% -3.92% 59.75 24.27 38.08
38. Oct 31, 2020 -3.35% -2.77% 30.58 14.21 20.85
39. Nov 30, 2020 11.87% 10.75% 93.89 95.09 94.49
40. Dec 31, 2020 7.91% 3.71% 32.83 7.34 15.52
41. Jan 31, 2021 -4.75% -1.11% 47.93 4.48 14.66
42. Feb 28, 2021 8.00% 2.61% 33.95 2.58 9.36
43. Mar 31, 2021 -1.81% 4.24% 15.93 10.50 -12.93
44. Apr 30, 2021 7.75% 5.24% 31.07 17.97 23.63
45. May 31, 2021 6.53% 0.55% 18.99 0.21 -1.98
46. Jun 30, 2021 11.63% 2.22% 89.43 1.48 11.52
47. Jul 31, 2021 8.24% 2.27% 36.77 1.62 7.71
48. Aug 31, 2021 6.82% 2.90% 21.56 3.59 8.80
49. Sep 30, 2021 -4.70% -4.76% 47.27 33.18 39.60
50. Oct 31, 2021 16.16% 6.91% 195.41 34.94 82.63
51. Nov 30, 2021 4.20% -0.83% 4.11 3.37 -3.72
52. Dec 31, 2021 -1.39% 4.36% 12.73 11.28 -11.98
53. Jan 31, 2022 -13.57% -5.26% 248.07 39.21 98.62
54. Feb 28, 2022 -14.56% -3.14% 280.22 17.13 69.29
55. Mar 31, 2022 1.36% 3.58% 0.66 6.63 -2.09
56. Apr 30, 2022 -12.77% -8.80% 223.44 96.02 146.47
57. May 31, 2022 -1.02% 0.01% 10.25 1.00 3.19
58. Jun 30, 2022 -7.00% -8.39% 84.24 88.27 86.23
59. Jul 31, 2022 18.53% 9.11% 267.34 65.75 132.58
60. Aug 31, 2022 -5.35% -4.24% 56.60 27.53 39.48
61. Sep 30, 2022 -10.30% -9.34% 155.58 106.97 129.01
62. Oct 31, 2022 10.58% 7.99% 70.54 48.76 58.65
63. Nov 30, 2022 -4.66% 5.38% 46.70 19.11 -29.88
64. Dec 31, 2022 -4.51% -5.90% 44.67 47.62 46.12
65. Jan 31, 2023 8.79% 6.18% 43.80 26.75 34.23
66. Feb 28, 2023 -3.66% -2.61% 34.12 13.06 21.11
67. Mar 31, 2023 9.49% 3.51% 53.52 6.26 18.30
68. Apr 30, 2023 -0.25% 1.46% 5.87 0.21 -1.12
69. May 31, 2023 -5.59% 0.25% 60.36 0.57 5.87
70. Jun 30, 2023 9.32% 4.71% 51.06 13.77 26.51
71. Jul 31, 2023 11.85% 4.85% 93.55 14.77 37.17
Total (Σ): 4,115.51 1,800.45 2,125.44

Show all

VarianceINTU = Σ(RINTU,tRINTU)2 ÷ (71 – 1)
= 4,115.51 ÷ (71 – 1)
= 58.79

VarianceS&P 500 = Σ(RS&P 500,tRS&P 500)2 ÷ (71 – 1)
= 1,800.45 ÷ (71 – 1)
= 25.72

CovarianceINTU, S&P 500 = Σ(RINTU,tRINTU)×(RS&P 500,tRS&P 500) ÷ (71 – 1)
= 2,125.44 ÷ (71 – 1)
= 30.36


Systematic Risk (β) Estimation

Microsoft Excel
VarianceINTU 58.79
VarianceS&P 500 25.72
CovarianceINTU, S&P 500 30.36
Correlation coefficientINTU, S&P 5001 0.78
βINTU2 1.18
αINTU3 0.99%

Calculations

1 Correlation coefficientINTU, S&P 500
= CovarianceINTU, S&P 500 ÷ (Standard deviationINTU × Standard deviationS&P 500)
= 30.36 ÷ (7.67% × 5.07%)
= 0.78

2 βINTU
= CovarianceINTU, S&P 500 ÷ VarianceS&P 500
= 30.36 ÷ 25.72
= 1.18

3 αINTU
= AverageINTU – βINTU × AverageS&P 500
= 2.18%1.18 × 1.00%
= 0.99%


Expected Rate of Return

Microsoft Excel
Assumptions
Rate of return on LT Treasury Composite1 RF 4.53%
Expected rate of return on market portfolio2 E(RM) 13.63%
Systematic risk (β) of Intuit Inc. common stock βINTU 1.18
 
Expected rate of return on Intuit Inc. common stock3 E(RINTU) 15.27%

1 Unweighted average of bid yields on all outstanding fixed-coupon U.S. Treasury bonds neither due or callable in less than 10 years (risk-free rate of return proxy).

2 See details »

3 E(RINTU) = RF + βINTU [E(RM) – RF]
= 4.53% + 1.18 [13.63%4.53%]
= 15.27%