In this video, tech and telecom analyst Andrew Tonner talks about Apple (NASDAQ:AAPL) 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.
Andrew Tonner 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.