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 article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis -- even one of our own -- helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.