Apple’s Free Cash Flow Could Push It To $150?

Apple

Apple’s free cash flow is truly remarkable and could push Apple stock to $150. At least, that is what Barclays analyst, Ben Reitzes, believes. In the last quarter the free cash flow per share has ended up 40 percent higher than expected in the eyes of the analyst.

Apple’s Free Cash Flow

Free cash flow is something that can push a stock. It is what is left to reinvest in current activities, other companies, or dividends. He expects that the free cash flow was skipped over by many during the last earnings call. The majority of analysts will only realize this down the road.

Although Apple’s free cash flow did not help the company in 2013, things will be different this time. Samsung had the momentum at the time and a few doom scenarios predicted Apple would generate a fraction of the free cash flow it generates today. Today things are looking quite different and the analyst believes that Apple has come out on top.

It is all in the figures according to Reitzes and, with a 12 percent enterprise value/cash flow yield, Apple is simply cheaper than Wal-Mart, Johnson & Johnson, Microsoft and any other type of company in the megacap-region.

The analyst believes next to that that CEO Tim Cok and CFO Luca Maestri have gained a lot of experience in these past years. They showed that they truly care about the stock next to their love for Apple products.

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Author: Travis Esquivel

Travis Esquivel is an engineer, passionate soccer player and full-time dad. He enjoys writing about innovation and technology from time to time.

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