The most serious way to value is a company is based on the net present value of all future cash flows. The future free cash flow growth rate of Apple will into the future be over 25% it is safe to say based on the growth over the past 10 years of its free cash flow. The discount rate of 10% per annum ie $10 today should be worth $10.1 in 12 months to compensate you for the risk of equity market investments is a fair discount rate.

That means the value of Apple should be $1000. At present, the market is assuming a growth of free cash flow of 9.26%, given what Apple is trading at. Apple is undervalued. for more