Given its $2.8 trillion market capitalization, it may be difficult for some investors to wrap their heads around the idea that Apple (NASDAQ: AAPL) stock may be a good buy these days. But investors may change their minds after they take a closer look at the company's underlying cash flow relative to this valuation, as well as Apple's growth opportunities.
While investors will want to do their own due diligence before they buy shares, here are three bullish points about the company to help you get started.
Apple's free cash flow, which is the cold, hard cash left over after all regular business operations and capital expenditures are taken care of, came in at about $108 billion over the trailing 12 months. This means the stock trades at 28 times free cash flow -- a reasonable if not attractive valuation for a company with a diverse set of products, a loyal customer base, and a long history of disciplined and value-creating capital allocation decisions from management.
For further details see:
Why I'm Bullish on Apple Stock