Stock Analysis on Net

Intuit Inc. (NASDAQ:INTU)

Capital Asset Pricing Model (CAPM) 

Microsoft Excel LibreOffice Calc

Rates of Return

Intuit Inc., monthly rates of return

Microsoft Excel LibreOffice Calc
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, 2015 $85.75 1,972.18
1. Sep 30, 2015 $88.75 3.50% 1,920.03 -2.64%
2. Oct 31, 2015 $97.43 $0.30 10.12% 2,079.36 8.30%
3. Nov 30, 2015 $100.20 2.84% 2,080.41 0.05%
. . . . . . .
. . . . . . .
. . . . . . .
70. Jun 30, 2021 $490.17 11.63% 4,297.50 2.22%
71. Jul 31, 2021 $529.97 $0.59 8.24% 4,395.26 2.27%
Average (R): 2.85% 1.22%
Standard deviation: 5.98% 4.23%
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, 2015 $85.75 1,972.18
1. Sep 30, 2015 $88.75 3.50% 1,920.03 -2.64%
2. Oct 31, 2015 $97.43 $0.30 10.12% 2,079.36 8.30%
3. Nov 30, 2015 $100.20 2.84% 2,080.41 0.05%
4. Dec 31, 2015 $96.50 -3.69% 2,043.94 -1.75%
5. Jan 31, 2016 $95.51 $0.30 -0.72% 1,940.24 -5.07%
6. Feb 29, 2016 $96.64 1.18% 1,932.23 -0.41%
7. Mar 31, 2016 $104.01 7.63% 2,059.74 6.60%
8. Apr 30, 2016 $100.89 $0.30 -2.71% 2,065.30 0.27%
9. May 31, 2016 $106.66 5.72% 2,096.95 1.53%
10. Jun 30, 2016 $111.61 4.64% 2,098.86 0.09%
11. Jul 31, 2016 $110.99 $0.30 -0.29% 2,173.60 3.56%
12. Aug 31, 2016 $111.45 0.41% 2,170.95 -0.12%
13. Sep 30, 2016 $110.01 -1.29% 2,168.27 -0.12%
14. Oct 31, 2016 $108.74 $0.34 -0.85% 2,126.15 -1.94%
15. Nov 30, 2016 $113.68 4.54% 2,198.81 3.42%
16. Dec 31, 2016 $114.61 0.82% 2,238.83 1.82%
17. Jan 31, 2017 $118.58 $0.34 3.76% 2,278.87 1.79%
18. Feb 28, 2017 $125.44 5.79% 2,363.64 3.72%
19. Mar 31, 2017 $115.99 -7.53% 2,362.72 -0.04%
20. Apr 30, 2017 $125.21 $0.34 8.24% 2,384.20 0.91%
21. May 31, 2017 $140.64 12.32% 2,411.80 1.16%
22. Jun 30, 2017 $132.81 -5.57% 2,423.41 0.48%
23. Jul 31, 2017 $137.21 $0.34 3.57% 2,470.30 1.93%
24. Aug 31, 2017 $141.45 3.09% 2,471.65 0.05%
25. Sep 30, 2017 $142.14 0.49% 2,519.36 1.93%
26. Oct 31, 2017 $151.02 $0.39 6.52% 2,575.26 2.22%
27. Nov 30, 2017 $157.22 4.11% 2,647.58 2.81%
28. Dec 31, 2017 $157.78 0.36% 2,673.61 0.98%
29. Jan 31, 2018 $167.90 $0.39 6.66% 2,823.81 5.62%
30. Feb 28, 2018 $166.86 -0.62% 2,713.83 -3.89%
31. Mar 31, 2018 $173.35 3.89% 2,640.87 -2.69%
32. Apr 30, 2018 $184.79 $0.39 6.82% 2,648.05 0.27%
33. May 31, 2018 $201.60 9.10% 2,705.27 2.16%
34. Jun 30, 2018 $204.31 1.34% 2,718.37 0.48%
35. Jul 31, 2018 $204.24 $0.39 0.16% 2,816.29 3.60%
36. Aug 31, 2018 $219.47 7.46% 2,901.52 3.03%
37. Sep 30, 2018 $227.40 3.61% 2,913.98 0.43%
38. Oct 31, 2018 $211.00 $0.47 -7.01% 2,711.74 -6.94%
39. Nov 30, 2018 $214.53 1.67% 2,760.17 1.79%
40. Dec 31, 2018 $196.85 -8.24% 2,506.85 -9.18%
41. Jan 31, 2019 $215.82 $0.47 9.88% 2,704.10 7.87%
42. Feb 28, 2019 $247.13 14.51% 2,784.49 2.97%
43. Mar 31, 2019 $261.41 5.78% 2,834.40 1.79%
44. Apr 30, 2019 $251.06 $0.47 -3.78% 2,945.83 3.93%
45. May 31, 2019 $244.85 -2.47% 2,752.06 -6.58%
46. Jun 30, 2019 $261.33 6.73% 2,941.76 6.89%
47. Jul 31, 2019 $277.31 $0.47 6.29% 2,980.38 1.31%
48. Aug 31, 2019 $288.36 3.98% 2,926.46 -1.81%
49. Sep 30, 2019 $265.94 -7.78% 2,976.74 1.72%
50. Oct 31, 2019 $257.50 $0.53 -2.97% 3,037.56 2.04%
51. Nov 30, 2019 $258.89 0.54% 3,140.98 3.40%
52. Dec 31, 2019 $261.93 1.17% 3,230.78 2.86%
53. Jan 31, 2020 $280.38 $0.53 7.25% 3,225.52 -0.16%
54. Feb 29, 2020 $265.85 -5.18% 2,954.22 -8.41%
55. Mar 31, 2020 $230.00 -13.49% 2,584.59 -12.51%
56. Apr 30, 2020 $269.81 $0.53 17.54% 2,912.43 12.68%
57. May 31, 2020 $290.32 7.60% 3,044.31 4.53%
58. Jun 30, 2020 $296.19 2.02% 3,100.29 1.84%
59. Jul 31, 2020 $306.37 $0.53 3.62% 3,271.12 5.51%
60. Aug 31, 2020 $345.39 12.74% 3,500.31 7.01%
61. Sep 30, 2020 $326.21 -5.55% 3,363.00 -3.92%
62. Oct 31, 2020 $314.68 $0.59 -3.35% 3,269.96 -2.77%
63. Nov 30, 2020 $352.02 11.87% 3,621.63 10.75%
64. Dec 31, 2020 $379.85 7.91% 3,756.07 3.71%
65. Jan 31, 2021 $361.23 $0.59 -4.75% 3,714.24 -1.11%
66. Feb 28, 2021 $390.14 8.00% 3,811.15 2.61%
67. Mar 31, 2021 $383.06 -1.81% 3,972.89 4.24%
68. Apr 30, 2021 $412.16 $0.59 7.75% 4,181.17 5.24%
69. May 31, 2021 $439.09 6.53% 4,204.11 0.55%
70. Jun 30, 2021 $490.17 11.63% 4,297.50 2.22%
71. Jul 31, 2021 $529.97 $0.59 8.24% 4,395.26 2.27%
Average (R): 2.85% 1.22%
Standard deviation: 5.98% 4.23%

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 LibreOffice Calc
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, 2015 3.50% -2.64% 0.42 14.96 -2.51
2. Oct 31, 2015 10.12% 8.30% 52.84 50.05 51.43
3. Nov 30, 2015 2.84% 0.05% 0.00 1.38 0.01
. . . . . . .
. . . . . . .
. . . . . . .
70. Jun 30, 2021 11.63% 2.22% 77.16 1.00 8.76
71. Jul 31, 2021 8.24% 2.27% 29.06 1.10 5.67
Total (Σ): 2,503.06 1,253.56 1,240.89
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, 2015 3.50% -2.64% 0.42 14.96 -2.51
2. Oct 31, 2015 10.12% 8.30% 52.84 50.05 51.43
3. Nov 30, 2015 2.84% 0.05% 0.00 1.38 0.01
4. Dec 31, 2015 -3.69% -1.75% 42.80 8.86 19.47
5. Jan 31, 2016 -0.72% -5.07% 12.70 39.66 22.45
6. Feb 29, 2016 1.18% -0.41% 2.78 2.68 2.73
7. Mar 31, 2016 7.63% 6.60% 22.82 28.89 25.68
8. Apr 30, 2016 -2.71% 0.27% 30.92 0.91 5.30
9. May 31, 2016 5.72% 1.53% 8.24 0.10 0.89
10. Jun 30, 2016 4.64% 0.09% 3.21 1.28 -2.03
11. Jul 31, 2016 -0.29% 3.56% 9.83 5.46 -7.33
12. Aug 31, 2016 0.41% -0.12% 5.93 1.81 3.28
13. Sep 30, 2016 -1.29% -0.12% 17.15 1.82 5.58
14. Oct 31, 2016 -0.85% -1.94% 13.65 10.03 11.70
15. Nov 30, 2016 4.54% 3.42% 2.87 4.81 3.72
16. Dec 31, 2016 0.82% 1.82% 4.13 0.36 -1.21
17. Jan 31, 2017 3.76% 1.79% 0.83 0.32 0.51
18. Feb 28, 2017 5.79% 3.72% 8.62 6.23 7.33
19. Mar 31, 2017 -7.53% -0.04% 107.80 1.59 13.11
20. Apr 30, 2017 8.24% 0.91% 29.08 0.10 -1.70
21. May 31, 2017 12.32% 1.16% 89.76 0.00 -0.63
22. Jun 30, 2017 -5.57% 0.48% 70.84 0.55 6.25
23. Jul 31, 2017 3.57% 1.93% 0.52 0.51 0.51
24. Aug 31, 2017 3.09% 0.05% 0.06 1.37 -0.28
25. Sep 30, 2017 0.49% 1.93% 5.58 0.50 -1.67
26. Oct 31, 2017 6.52% 2.22% 13.49 0.99 3.65
27. Nov 30, 2017 4.11% 2.81% 1.58 2.51 1.99
28. Dec 31, 2017 0.36% 0.98% 6.22 0.06 0.60
29. Jan 31, 2018 6.66% 5.62% 14.53 19.31 16.75
30. Feb 28, 2018 -0.62% -3.89% 12.03 26.20 17.75
31. Mar 31, 2018 3.89% -2.69% 1.08 15.31 -4.07
32. Apr 30, 2018 6.82% 0.27% 15.80 0.91 -3.78
33. May 31, 2018 9.10% 2.16% 39.03 0.88 5.85
34. Jun 30, 2018 1.34% 0.48% 2.26 0.55 1.11
35. Jul 31, 2018 0.16% 3.60% 7.25 5.66 -6.40
36. Aug 31, 2018 7.46% 3.03% 21.23 3.25 8.31
37. Sep 30, 2018 3.61% 0.43% 0.58 0.63 -0.61
38. Oct 31, 2018 -7.01% -6.94% 97.11 66.65 80.45
39. Nov 30, 2018 1.67% 1.79% 1.38 0.32 -0.66
40. Dec 31, 2018 -8.24% -9.18% 123.00 108.19 115.36
41. Jan 31, 2019 9.88% 7.87% 49.37 44.15 46.69
42. Feb 28, 2019 14.51% 2.97% 135.91 3.06 20.39
43. Mar 31, 2019 5.78% 1.79% 8.58 0.32 1.67
44. Apr 30, 2019 -3.78% 3.93% 43.94 7.33 -17.95
45. May 31, 2019 -2.47% -6.58% 28.33 60.86 41.53
46. Jun 30, 2019 6.73% 6.89% 15.07 32.14 22.00
47. Jul 31, 2019 6.29% 1.31% 11.87 0.01 0.31
48. Aug 31, 2019 3.98% -1.81% 1.29 9.20 -3.44
49. Sep 30, 2019 -7.78% 1.72% 112.87 0.24 -5.25
50. Oct 31, 2019 -2.97% 2.04% 33.91 0.67 -4.77
51. Nov 30, 2019 0.54% 3.40% 5.33 4.76 -5.04
52. Dec 31, 2019 1.17% 2.86% 2.81 2.67 -2.74
53. Jan 31, 2020 7.25% -0.16% 19.33 1.92 -6.10
54. Feb 29, 2020 -5.18% -8.41% 64.50 92.83 77.38
55. Mar 31, 2020 -13.49% -12.51% 266.81 188.67 224.36
56. Apr 30, 2020 17.54% 12.68% 215.79 131.35 168.36
57. May 31, 2020 7.60% 4.53% 22.59 10.92 15.70
58. Jun 30, 2020 2.02% 1.84% 0.68 0.38 -0.51
59. Jul 31, 2020 3.62% 5.51% 0.59 18.37 3.29
60. Aug 31, 2020 12.74% 7.01% 97.75 33.44 57.17
61. Sep 30, 2020 -5.55% -3.92% 70.60 26.49 43.24
62. Oct 31, 2020 -3.35% -2.77% 38.48 15.92 24.75
63. Nov 30, 2020 11.87% 10.75% 81.30 90.84 85.94
64. Dec 31, 2020 7.91% 3.71% 25.57 6.19 12.58
65. Jan 31, 2021 -4.75% -1.11% 57.70 5.46 17.75
66. Feb 28, 2021 8.00% 2.61% 26.56 1.92 7.14
67. Mar 31, 2021 -1.81% 4.24% 21.75 9.12 -14.09
68. Apr 30, 2021 7.75% 5.24% 24.03 16.15 19.70
69. May 31, 2021 6.53% 0.55% 13.58 0.46 -2.49
70. Jun 30, 2021 11.63% 2.22% 77.16 1.00 8.76
71. Jul 31, 2021 8.24% 2.27% 29.06 1.10 5.67
Total (Σ): 2,503.06 1,253.56 1,240.89

Show all

VarianceINTU = Σ(RINTU,tRINTU)2 ÷ (71 – 1)
= 2,503.06 ÷ (71 – 1)
= 35.76

VarianceS&P 500 = Σ(RS&P 500,tRS&P 500)2 ÷ (71 – 1)
= 1,253.56 ÷ (71 – 1)
= 17.91

CovarianceINTU, S&P 500 = Σ(RINTU,tRINTU)×(RS&P 500,tRS&P 500) ÷ (71 – 1)
= 1,240.89 ÷ (71 – 1)
= 17.73


Systematic Risk (β) Estimation

Microsoft Excel LibreOffice Calc
VarianceINTU 35.76
VarianceS&P 500 17.91
CovarianceINTU, S&P 500 17.73
Correlation coefficientINTU, S&P 5001 0.70
βINTU2 0.99
αINTU3 1.64%

Calculations

1 Correlation coefficientINTU, S&P 500
= CovarianceINTU, S&P 500 ÷ (Standard deviationINTU × Standard deviationS&P 500)
= 17.73 ÷ (5.98% × 4.23%)
= 0.70

2 βINTU
= CovarianceINTU, S&P 500 ÷ VarianceS&P 500
= 17.73 ÷ 17.91
= 0.99

3 αINTU
= AverageINTU – βINTU × AverageS&P 500
= 2.85%0.99 × 1.22%
= 1.64%


Expected Rate of Return

Microsoft Excel LibreOffice Calc
Assumptions
Rate of return on LT Treasury Composite1 RF 3.20%
Expected rate of return on market portfolio2 E(RM) 12.23%
Systematic risk (β) of Intuit Inc. common stock βINTU 0.99
 
Expected rate of return on Intuit Inc. common stock3 E(RINTU) 12.14%

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]
= 3.20% + 0.99 [12.23%3.20%]
= 12.14%