Apple’s stock (AAPL) remains strong despite tech sell-off, potentially worth 17% more due to high free cash flow (FCF) and FCF margins. Currently trading at $277.90, up 2.785% from a month ago at $270.37. Analysts suggest a $325 price target based on FCF metrics and revenue forecasts for the next year.

Apple reported FCF margins of 25.85% in Q4 and 23.74% for the fiscal year, implying a potential $115 billion in FCF for the next 12 months based on a $460 billion revenue forecast. FCF yield calculations suggest a 16.5% increase in market value, leading to a $325 price target for AAPL stock.

Shorting out-of-the-money (OTM) put options on AAPL stock has been profitable, with opportunities to sell short puts at lower strike prices for a decent yield. Investors can potentially benefit from income while setting a lower buy-in point if the stock falls between $265 and $270. Considered a strategy to play the undervalued AAPL stock, which looks to be 17% below its potential value.

Read more at Barchart: Apple Stock Looks Cheap Here Based on Strong FCF