Stock Analysis on Net
Stock Analysis on Net
Microsoft Excel LibreOffice Calc

Intuit Inc. (NASDAQ:INTU)

Capital Asset Pricing Model (CAPM)

Intermediate level

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, 2014 $83.18 2,003.37
1. Sep 30, 2014 $87.65 5.37% 1,972.29 -1.55%
2. Oct 31, 2014 $88.01 $0.25 0.70% 2,018.05 2.32%
3. Nov 30, 2014 $93.87 6.66% 2,067.56 2.45%
. . . . . . .
. . . . . . .
. . . . . . .
70. Jun 30, 2020 $296.19 2.02% 3,100.29 1.84%
71. Jul 31, 2020 $306.37 $0.53 3.62% 3,271.12 5.51%
Average (R): 2.12% 0.78%
Standard deviation: 6.14% 4.07%
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, 2014 $83.18 2,003.37
1. Sep 30, 2014 $87.65 5.37% 1,972.29 -1.55%
2. Oct 31, 2014 $88.01 $0.25 0.70% 2,018.05 2.32%
3. Nov 30, 2014 $93.87 6.66% 2,067.56 2.45%
4. Dec 31, 2014 $92.19 -1.79% 2,058.90 -0.42%
5. Jan 31, 2015 $86.82 $0.25 -5.55% 1,994.99 -3.10%
6. Feb 28, 2015 $97.63 12.45% 2,104.50 5.49%
7. Mar 31, 2015 $96.96 -0.69% 2,067.89 -1.74%
8. Apr 30, 2015 $100.33 $0.25 3.73% 2,085.51 0.85%
9. May 31, 2015 $104.15 3.81% 2,107.39 1.05%
10. Jun 30, 2015 $100.77 -3.25% 2,063.11 -2.10%
11. Jul 31, 2015 $105.77 $0.25 5.21% 2,103.84 1.97%
12. Aug 31, 2015 $85.75 -18.93% 1,972.18 -6.26%
13. Sep 30, 2015 $88.75 3.50% 1,920.03 -2.64%
14. Oct 31, 2015 $97.43 $0.30 10.12% 2,079.36 8.30%
15. Nov 30, 2015 $100.20 2.84% 2,080.41 0.05%
16. Dec 31, 2015 $96.50 -3.69% 2,043.94 -1.75%
17. Jan 31, 2016 $95.51 $0.30 -0.72% 1,940.24 -5.07%
18. Feb 29, 2016 $96.64 1.18% 1,932.23 -0.41%
19. Mar 31, 2016 $104.01 7.63% 2,059.74 6.60%
20. Apr 30, 2016 $100.89 $0.30 -2.71% 2,065.30 0.27%
21. May 31, 2016 $106.66 5.72% 2,096.95 1.53%
22. Jun 30, 2016 $111.61 4.64% 2,098.86 0.09%
23. Jul 31, 2016 $110.99 $0.30 -0.29% 2,173.60 3.56%
24. Aug 31, 2016 $111.45 0.41% 2,170.95 -0.12%
25. Sep 30, 2016 $110.01 -1.29% 2,168.27 -0.12%
26. Oct 31, 2016 $108.74 $0.34 -0.85% 2,126.15 -1.94%
27. Nov 30, 2016 $113.68 4.54% 2,198.81 3.42%
28. Dec 31, 2016 $114.61 0.82% 2,238.83 1.82%
29. Jan 31, 2017 $118.58 $0.34 3.76% 2,278.87 1.79%
30. Feb 28, 2017 $125.44 5.79% 2,363.64 3.72%
31. Mar 31, 2017 $115.99 -7.53% 2,362.72 -0.04%
32. Apr 30, 2017 $125.21 $0.34 8.24% 2,384.20 0.91%
33. May 31, 2017 $140.64 12.32% 2,411.80 1.16%
34. Jun 30, 2017 $132.81 -5.57% 2,423.41 0.48%
35. Jul 31, 2017 $137.21 $0.34 3.57% 2,470.30 1.93%
36. Aug 31, 2017 $141.45 3.09% 2,471.65 0.05%
37. Sep 30, 2017 $142.14 0.49% 2,519.36 1.93%
38. Oct 31, 2017 $151.02 $0.39 6.52% 2,575.26 2.22%
39. Nov 30, 2017 $157.22 4.11% 2,647.58 2.81%
40. Dec 31, 2017 $157.78 0.36% 2,673.61 0.98%
41. Jan 31, 2018 $167.90 $0.39 6.66% 2,823.81 5.62%
42. Feb 28, 2018 $166.86 -0.62% 2,713.83 -3.89%
43. Mar 31, 2018 $173.35 3.89% 2,640.87 -2.69%
44. Apr 30, 2018 $184.79 $0.39 6.82% 2,648.05 0.27%
45. May 31, 2018 $201.60 9.10% 2,705.27 2.16%
46. Jun 30, 2018 $204.31 1.34% 2,718.37 0.48%
47. Jul 31, 2018 $204.24 $0.39 0.16% 2,816.29 3.60%
48. Aug 31, 2018 $219.47 7.46% 2,901.52 3.03%
49. Sep 30, 2018 $227.40 3.61% 2,913.98 0.43%
50. Oct 31, 2018 $211.00 $0.47 -7.01% 2,711.74 -6.94%
51. Nov 30, 2018 $214.53 1.67% 2,760.17 1.79%
52. Dec 31, 2018 $196.85 -8.24% 2,506.85 -9.18%
53. Jan 31, 2019 $215.82 $0.47 9.88% 2,704.10 7.87%
54. Feb 28, 2019 $247.13 14.51% 2,784.49 2.97%
55. Mar 31, 2019 $261.41 5.78% 2,834.40 1.79%
56. Apr 30, 2019 $251.06 $0.47 -3.78% 2,945.83 3.93%
57. May 31, 2019 $244.85 -2.47% 2,752.06 -6.58%
58. Jun 30, 2019 $261.33 6.73% 2,941.76 6.89%
59. Jul 31, 2019 $277.31 $0.47 6.29% 2,980.38 1.31%
60. Aug 31, 2019 $288.36 3.98% 2,926.46 -1.81%
61. Sep 30, 2019 $265.94 -7.78% 2,976.74 1.72%
62. Oct 31, 2019 $257.50 $0.53 -2.97% 3,037.56 2.04%
63. Nov 30, 2019 $258.89 0.54% 3,140.98 3.40%
64. Dec 31, 2019 $261.93 1.17% 3,230.78 2.86%
65. Jan 31, 2020 $280.38 $0.53 7.25% 3,225.52 -0.16%
66. Feb 29, 2020 $265.85 -5.18% 2,954.22 -8.41%
67. Mar 31, 2020 $230.00 -13.49% 2,584.59 -12.51%
68. Apr 30, 2020 $269.81 $0.53 17.54% 2,912.43 12.68%
69. May 31, 2020 $290.32 7.60% 3,044.31 4.53%
70. Jun 30, 2020 $296.19 2.02% 3,100.29 1.84%
71. Jul 31, 2020 $306.37 $0.53 3.62% 3,271.12 5.51%
Average (R): 2.12% 0.78%
Standard deviation: 6.14% 4.07%

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 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, 2014 5.37% -1.55% 10.56 5.41 -7.56
2. Oct 31, 2014 0.70% 2.32% 2.04 2.39 -2.21
3. Nov 30, 2014 6.66% 2.45% 20.56 2.82 7.61
. . . . . . .
. . . . . . .
. . . . . . .
70. Jun 30, 2020 2.02% 1.84% 0.01 1.13 -0.11
71. Jul 31, 2020 3.62% 5.51% 2.23 22.42 7.06
Total (Σ): 2,643.21 1,157.78 1,226.88
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, 2014 5.37% -1.55% 10.56 5.41 -7.56
2. Oct 31, 2014 0.70% 2.32% 2.04 2.39 -2.21
3. Nov 30, 2014 6.66% 2.45% 20.56 2.82 7.61
4. Dec 31, 2014 -1.79% -0.42% 15.32 1.43 4.67
5. Jan 31, 2015 -5.55% -3.10% 58.95 15.05 29.79
6. Feb 28, 2015 12.45% 5.49% 106.64 22.22 48.68
7. Mar 31, 2015 -0.69% -1.74% 7.90 6.32 7.07
8. Apr 30, 2015 3.73% 0.85% 2.59 0.01 0.12
9. May 31, 2015 3.81% 1.05% 2.83 0.08 0.46
10. Jun 30, 2015 -3.25% -2.10% 28.83 8.27 15.45
11. Jul 31, 2015 5.21% 1.97% 9.52 1.44 3.70
12. Aug 31, 2015 -18.93% -6.26% 443.19 49.47 148.07
13. Sep 30, 2015 3.50% -2.64% 1.89 11.69 -4.70
14. Oct 31, 2015 10.12% 8.30% 63.91 56.60 60.14
15. Nov 30, 2015 2.84% 0.05% 0.52 0.53 -0.52
16. Dec 31, 2015 -3.69% -1.75% 33.84 6.39 14.71
17. Jan 31, 2016 -0.72% -5.07% 8.06 34.21 16.61
18. Feb 29, 2016 1.18% -0.41% 0.89 1.41 1.12
19. Mar 31, 2016 7.63% 6.60% 30.27 33.92 32.04
20. Apr 30, 2016 -2.71% 0.27% 23.38 0.26 2.44
21. May 31, 2016 5.72% 1.53% 12.92 0.57 2.72
22. Jun 30, 2016 4.64% 0.09% 6.33 0.47 -1.72
23. Jul 31, 2016 -0.29% 3.56% 5.81 7.76 -6.72
24. Aug 31, 2016 0.41% -0.12% 2.92 0.80 1.53
25. Sep 30, 2016 -1.29% -0.12% 11.67 0.81 3.07
26. Oct 31, 2016 -0.85% -1.94% 8.82 7.39 8.07
27. Nov 30, 2016 4.54% 3.42% 5.85 6.98 6.39
28. Dec 31, 2016 0.82% 1.82% 1.71 1.09 -1.36
29. Jan 31, 2017 3.76% 1.79% 2.68 1.03 1.66
30. Feb 28, 2017 5.79% 3.72% 13.40 8.67 10.78
31. Mar 31, 2017 -7.53% -0.04% 93.27 0.66 7.86
32. Apr 30, 2017 8.24% 0.91% 37.43 0.02 0.82
33. May 31, 2017 12.32% 1.16% 104.02 0.15 3.90
34. Jun 30, 2017 -5.57% 0.48% 59.16 0.09 2.26
35. Jul 31, 2017 3.57% 1.93% 2.09 1.34 1.68
36. Aug 31, 2017 3.09% 0.05% 0.93 0.52 -0.70
37. Sep 30, 2017 0.49% 1.93% 2.68 1.33 -1.89
38. Oct 31, 2017 6.52% 2.22% 19.34 2.08 6.35
39. Nov 30, 2017 4.11% 2.81% 3.93 4.13 4.03
40. Dec 31, 2017 0.36% 0.98% 3.13 0.04 -0.37
41. Jan 31, 2018 6.66% 5.62% 20.58 23.45 21.97
42. Feb 28, 2018 -0.62% -3.89% 7.53 21.81 12.81
43. Mar 31, 2018 3.89% -2.69% 3.12 12.00 -6.11
44. Apr 30, 2018 6.82% 0.27% 22.09 0.25 -2.37
45. May 31, 2018 9.10% 2.16% 48.62 1.92 9.66
46. Jun 30, 2018 1.34% 0.48% 0.61 0.08 0.23
47. Jul 31, 2018 0.16% 3.60% 3.87 7.99 -5.56
48. Aug 31, 2018 7.46% 3.03% 28.44 5.07 12.00
49. Sep 30, 2018 3.61% 0.43% 2.22 0.12 -0.51
50. Oct 31, 2018 -7.01% -6.94% 83.35 59.53 70.44
51. Nov 30, 2018 1.67% 1.79% 0.20 1.02 -0.46
52. Dec 31, 2018 -8.24% -9.18% 107.44 99.06 103.17
53. Jan 31, 2019 9.88% 7.87% 60.08 50.31 54.98
54. Feb 28, 2019 14.51% 2.97% 153.34 4.83 27.21
55. Mar 31, 2019 5.78% 1.79% 13.35 1.03 3.72
56. Apr 30, 2019 -3.78% 3.93% 34.85 9.96 -18.63
57. May 31, 2019 -2.47% -6.58% 21.14 54.07 33.81
58. Jun 30, 2019 6.73% 6.89% 21.22 37.43 28.18
59. Jul 31, 2019 6.29% 1.31% 17.39 0.29 2.24
60. Aug 31, 2019 3.98% -1.81% 3.46 6.68 -4.81
61. Sep 30, 2019 -7.78% 1.72% 97.99 0.89 -9.33
62. Oct 31, 2019 -2.97% 2.04% 26.00 1.61 -6.46
63. Nov 30, 2019 0.54% 3.40% 2.51 6.91 -4.17
64. Dec 31, 2019 1.17% 2.86% 0.90 4.34 -1.98
65. Jan 31, 2020 7.25% -0.16% 26.23 0.88 -4.80
66. Feb 29, 2020 -5.18% -8.41% 53.38 84.39 67.12
67. Mar 31, 2020 -13.49% -12.51% 243.65 176.55 207.40
68. Apr 30, 2020 17.54% 12.68% 237.62 141.83 183.58
69. May 31, 2020 7.60% 4.53% 30.00 14.08 20.56
70. Jun 30, 2020 2.02% 1.84% 0.01 1.13 -0.11
71. Jul 31, 2020 3.62% 5.51% 2.23 22.42 7.06
Total (Σ): 2,643.21 1,157.78 1,226.88

Show all

VarianceINTU = Σ(RINTU,tRINTU)2 ÷ (71 – 1)
= 2,643.21 ÷ (71 – 1)
= 37.76

VarianceS&P 500 = Σ(RS&P 500,tRS&P 500)2 ÷ (71 – 1)
= 1,157.78 ÷ (71 – 1)
= 16.54

CovarianceINTU, S&P 500 = Σ(RINTU,tRINTU)×(RS&P 500,tRS&P 500) ÷ (71 – 1)
= 1,226.88 ÷ (71 – 1)
= 17.53


Systematic Risk (β) Estimation

Microsoft Excel LibreOffice Calc
VarianceINTU 37.76
VarianceS&P 500 16.54
CovarianceINTU, S&P 500 17.53
Correlation coefficientINTU, S&P 5001 0.70
βINTU2 1.06
αINTU3 1.30%

Calculations

1 Correlation coefficientINTU, S&P 500
= CovarianceINTU, S&P 500 ÷ (Standard deviationINTU × Standard deviationS&P 500)
= 17.53 ÷ (6.14% × 4.07%)
= 0.70

2 βINTU
= CovarianceINTU, S&P 500 ÷ VarianceS&P 500
= 17.53 ÷ 16.54
= 1.06

3 αINTU
= AverageINTU – βINTU × AverageS&P 500
= 2.12%1.06 × 0.78%
= 1.30%


Expected Rate of Return

Microsoft Excel LibreOffice Calc
Assumptions
Rate of return on LT Treasury Composite1 RF 1.74%
Expected rate of return on market portfolio2 E(RM) 11.71%
Systematic risk (β) of Intuit Inc.’s common stock βINTU 1.06
 
Expected rate of return on Intuit Inc.’s common stock3 E(RINTU) 12.31%

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]
= 1.74% + 1.06 [11.71%1.74%]
= 12.31%