Stock Investment Shiny App

The benefits for developing the stock calculator application are:-

• Prepare a platform for a user to understand the stock performance through the respective company performance.
• Get to key in the latest and accurate information from the current financial result of a company. Results will be shown once all the required information has completely been done.
• Understand and evaluate the company performance over a period through the numbers.
• Guide the user for investing the stock with a certain confidence level and get to know their expected share return by measuring the market risk and the expected market return with the value of risk free rate.
• Perform the evaluation on the return for investment.

The Stock Investment App has been categorized as three parts. The first part is to calculate the financial ratios. The results can be used as a part of stock valuation to determine the company's performance in future. There are seven ratios to be determined and to do the evaluation. The ratios are:-

• EBITDA (Earnings Before Interests, Taxes, Depreciation and Amortization)
• EPS (Earnings Per Share) and Price-Earnings Ratio (P/E ratio)
• Earnings Yield
• Return on Assets (ROA)
• Return on Common Equity (ROCE)
• Cash Flow per Share.

For the second part, it is about calculating the expected security return by using the Capital Asset Pricing Model.

Capital Asset Pricing Model is a model to measure the market risk and to expect the stock return. We use the formula below to complete the calculation, such as:-

Expected Security Return = Risk Free Rate + Beta (Expected Market Return - Risk Free Rate) = Risk Free Rate + Beta (Equity Market Premium)

For the third part, we measure our investment return by calculating the paper profit or loss and compare the investment return with the expected stock return.

Note: The link to the used app is: https://cheeyuong.shinyapps.io/stockinv_app/

Reference to the website at http://www.investopedia.com/.

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