Apple Stock Valuation

Investors who haven't taken the time to value Apple (NASDAQ:AAPL) stock could easily conclude it's too late to buy shares. After all, with a mind-boggling $630 billion market capitalization, Apple is the world's most valuable company. Further, shares have soared about 170% during the past five years and 1,400% during the last 10. Investors may wonder: "How can Apple stock rise any higher?"

But a closer look at the tech giant reveals that its share price is at a very low level relative to the value in the underlying business. And the stock's conservative valuation is even more surprising in light of Apple's recent business growth.

Apple Stock

Apple Store. Image source: Apple.

Going forward, Apple looks like an excellent long-term bet for investors. With its uncanny ability to generate loads of free cash flow, and an aggressive share repurchase program, Apple is still building substantial value for shareholders even as a company with more than $200 billion in annual revenues.

The infographic below makes the case for the immense value in Apple stock.

Infographic calculations are based on share prices as of Oct. 7, 2015. At the time this chart was made, Apple stock was trading at $111. Infographic source: Author. 

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Daniel Sparks owns shares of Apple. The Motley Fool owns shares of and recommends Alphabet (A and C shares), and Apple. The Motley Fool recommends Intel. Try any of our Foolish newsletter services free for 30 days. We Fools may not 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.