One of the simplest, most straightforward ways to quickly value a stock is by the free cash flow yield. Similar to the dividend yield, the higher this metric, the better. Turns out that Apple's (AAPL 0.04%) yield is considerably and almost irrationally high, especially compared to other stocks in its sector like Intel (INTC 3.03%) and Microsoft (MSFT +1.69%) -- two companies plagued by declining PC sales.
In the video below, Fool contributor Daniel Sparks discusses with Fool.com's Erin Miller exactly why he thinks Apple's high free cash flow yield could mean that Apple is irrationally cheap.
