Apple Stock Can Go Significantly Higher Due to Stellar Free Cash Flow

$Apple(AAPL.US)$ The company produced stellar revenue and earnings growth with revenue up 11% year-over-year (YOY) and net income up 20.4% during Q4. But more importantly, the company’s FCF was higher, as well.
Apple generated $44.163 billion in free cash flow, which is the result of deducting $2.803 billion in capex spending from $46.966 billion in cash flow from operations. Apple is one of the few companies that actually produce a quarterly cash flow statement, which is on page 3 of the financial statements, so this is easy to calculate.
We can tell that this is a high level by comparing it with the company’s revenue level. So if we divide the $44.16 billion in FCF by its $123.9 billion in quarterly revenue, its FCF margin was 35.6%. This is an extremely high margin. It shows just how incredibly profitable the company is right now.
Moreover, if we project that out for the next year or two we can derive a fair value for AAPL stock. Let’s see how that works out.