Microsoft as corporation slightly annoys me, they've been behind the times and they've been over charging for their products. Apple actively pisses me off but in so doing makes me like Microsoft more. In comparison, Microsoft seems to be a kinder and gentler company trying to do us a favor. They're improving their products, offering them at more competitive (relatively) prices, and introducing new stuff. If this trend continues they'll probably be useful for years to come. At least until 2015 anyway.
Valuation Ratios
Price/Earnings (TTM) . . . . . . 11.18x
Price/Sales (TTM) . . . . . . . . 3.39x
Price/Book (MRQ) . . . . . . . . 4.75x
Price/Cash Flow (TTM) . . . . . 9.62x
Analyst's ratings:
Thomas . . . . . 5/5: Positive earnings, Very high relative value, Negative Price movement, price average vs EPS $25.25 to 26.36
Davison . . . . . 3/5
Benjamim . . . . 4/5 Last price $26.89 Fair value $35.00 Difference $8.11 30.16%
Alexis . . . . . . . 4/5 (buy) Fair value $32 (sell before 2019)
Insiders . . . . Lots of selling by Bill gates and CEO Ballmer, but I personally don't see that as a bad thing in this case.
Saxon . . . . . . 4/5
I've done a write up on Microsoft in the past, but don't know if it got wiped before I submitted it or what. Long story short, Microsoft has a lot of good software cash cows and is having a hard time breaking into other markets. It's not a bad time for them in the near term, and so it's worth owning them in this price slump they're experiencing. I've had buy orders out on MSFT for a while at around $23, I'm keeping those orders. However after their recent earnings report I've added a buy order for $26.85
Update 6/6/11
24.01
Price/Earnings (TTM) 9.47x
Price/Sales (TTM) 2.94x
Price/Book (MRQ) 3.77x
Price/Cash Flow (TTM) 8.25x
Nothing has changed since my first purchase except sentiment and improved earnings, I just placed a new order at 23.90 for half my previous allotment anticipating further decline. If it creeps into the $20 to $22 I'll consider buying even more, my price target is $35+, since I agree that there are sexier companies out there. The reality is that the market is not currently fairly valuing microsoft and throwing money at the likes of Apple and Netflix, as pressure continues however that sentiment has a good chance to flip and at that point the other end of the seesaw is the place to walk to.
Valuation Ratios
Price/Earnings (TTM) . . . . . . 11.18x
Price/Sales (TTM) . . . . . . . . 3.39x
Price/Book (MRQ) . . . . . . . . 4.75x
Price/Cash Flow (TTM) . . . . . 9.62x
Analyst's ratings:
Thomas . . . . . 5/5: Positive earnings, Very high relative value, Negative Price movement, price average vs EPS $25.25 to 26.36
Davison . . . . . 3/5
Benjamim . . . . 4/5 Last price $26.89 Fair value $35.00 Difference $8.11 30.16%
Alexis . . . . . . . 4/5 (buy) Fair value $32 (sell before 2019)
Insiders . . . . Lots of selling by Bill gates and CEO Ballmer, but I personally don't see that as a bad thing in this case.
Saxon . . . . . . 4/5
I've done a write up on Microsoft in the past, but don't know if it got wiped before I submitted it or what. Long story short, Microsoft has a lot of good software cash cows and is having a hard time breaking into other markets. It's not a bad time for them in the near term, and so it's worth owning them in this price slump they're experiencing. I've had buy orders out on MSFT for a while at around $23, I'm keeping those orders. However after their recent earnings report I've added a buy order for $26.85
Update 6/6/11
24.01
Price/Earnings (TTM) 9.47x
Price/Sales (TTM) 2.94x
Price/Book (MRQ) 3.77x
Price/Cash Flow (TTM) 8.25x
Nothing has changed since my first purchase except sentiment and improved earnings, I just placed a new order at 23.90 for half my previous allotment anticipating further decline. If it creeps into the $20 to $22 I'll consider buying even more, my price target is $35+, since I agree that there are sexier companies out there. The reality is that the market is not currently fairly valuing microsoft and throwing money at the likes of Apple and Netflix, as pressure continues however that sentiment has a good chance to flip and at that point the other end of the seesaw is the place to walk to.