Microsoft Corporation’s (NASDAQ:MSFT) Intrinsic Value Is Potentially 34% Above Its Share Price
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Using the 2 Stage Free Cash Flow to Equity, Microsoft fair value estimate is US$572
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Microsoft’s US$428 share price signals that it might be 25% undervalued
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The US$500 analyst price target for MSFT is 13% less than our estimate of fair value
How far off is Microsoft Corporation (NASDAQ:MSFT) from its intrinsic value? Using the most recent financial data, we’ll take a look at whether the stock is fairly priced by taking the expected future cash flows and discounting them to their present value. We will use the Discounted Cash Flow (DCF) model on this occasion. Before you think you won’t be able to understand it, just read on! It’s actually much less complex than you’d imagine.
We generally believe that a company’s value is the…
