Apple (NASDAQ:AAPL) gets its fair share of headlines. With such an active rumor mill, it's easy for Apple investors to get caught up in short-term nonsense that often has no impact whatsoever on the underlying business. So in the following video, Fool contributor Daniel Sparks stepped back to get a big-picture look at Apple stock today.
Apple is a cash cow. In fact, in the trailing 12 months Apple has raked in a whopping $44.2 billion in free cash flow. Is the market appropriately valuing this healthy stream of cash produced by a market leader? Daniel doesn't think so. In fact, he argues that a conservative discounted cash flow valuation suggests Apple is trading at a 30% discount to fair value.
Check out the video to see what exactly Daniel thinks Apple stock is worth.
This stock could be a better pick than Apple
There's a huge difference between a good stock and a stock that can make you rich. The Motley Fool's chief investment officer has selected his No. 1 stock for 2014, and it's one of those stocks that could make you rich. You can find out which stock it is in the special free report "The Motley Fool's Top Stock for 2014." Just click here to access the report and find out the name of this under-the-radar company.
Daniel Sparks owns shares of Apple. The Motley Fool recommends and owns shares of Apple. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.