Please ensure Javascript is enabled for purposes of website accessibility

Is Apple the Most Underpriced Stock on the Market?

By Andrew Tonner - Apr 21, 2013 at 7:00PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

What do these staggering new lows mean for Apple investors?

In this video, tech and telecom analyst Andrew Tonner talks about Apple (AAPL 2.32%) and tells us why the company's stock is underpriced. Aggregating analyst estimates gives a price of around $584, which shows a 45% increase from Apple's current share price of below $400. Apple's operations are valued at 6 times its cash flow, and analysts are predicting a 15% long-term growth rate for the company.

Andrew also mentions two of Apple's biggest strengths: brand name and ecosystem. The company's reputation creates brand loyalty, which is why the company sees repeat customers.

Meanwhile, as investors hope for a dividend increase, Andrew looks ahead to Apple's future areas for growth in creating a new customer product category with the upcoming iWatch or the iTV.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Apple Inc. Stock Quote
Apple Inc.
$143.78 (2.32%) $3.26

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 05/26/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.