Apple's services revenue is likely to be as big as a Fortune 100 company, CNBC's Jim Cramer said Monday.
"I still continue to think it's undervalued," Cramer said on CNBC's "Squawk on the Street."
Cramer's comment came after UBS reiterated its buy rating of Apple in a note Monday. The firm said investors should continue to purchase the tech giant's shares because the market will recognize the value of the company's services business.
Although Apple is "tied to hardware, [its] services probably is undervalued," UBS analyst Steven Milunovich wrote.
Milunovich added that if Apple's services were valued similarly to PayPal, the "stock would be at least 10 percent higher."
Cramer also commented on the sentiment regarding the much-anticipated September release of the iPhone 8 — the 10th anniversary of the release of the iconic iPhone — which is expected to be a significant upgrade.
"This is the first time that I felt that Apple has something that would make it so we really could be surprised by what it is," Cramer said.
Disclosure: Jim Cramer's charitable trust owns shares of Apple.
—CNBC's Tae Kim contributed to this report.