Alex M
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Hard to say. The fundamentals say it's undervalued right now:
PE is 21.6 while Industry is priced at 27.7
technically it's underpriced.
Revenue is growing at an average pace:
2007 TTM +12%
2006 +11%
2005 +8%
Profit also:
2007 TTM +9%
2006 +9%
2005 +11%
Earnings are a bit better:
2007 TTM +24%
2006 +7%
2005 +49%
PEG for 2007 approx. 0.9
0$ long term debt
0$ short term debt
7.6 bln in cash and cash equivalents
What does this all say? I don't know. If you observed these stats without knowing they were Microsoft's chances are you'd being buying right about now. However, I feel like Microsoft is kind of stuck in a rut of mediocrity, which is one reason they've been paying out dividends because they don't know how to use that money to grow. |
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dustyrustie
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Microsoft is not a good buy right now, not even for the long term. They are like a bank with too much exposure. So if you want to buy a bank, buy Citibank or Wells Fargo. MSFT has been dead money for years and has no growth story, particularly with open systems and declining PC growth encroaching on their space. Really, don't do it. You want good long term? Look at BUD, CAT, UTX, ADM or some other big cap that will be safe but whose growth will outpace the market. Good luck. |
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bizzbagg
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net income= $12,599,000
equity=$40,104,000
12,599,000 / 40,104,000=31%
earning per share=$1.38
31x $1.38=$42.78 fair value of stock
we want atleast a 50% discount of that which would bring the price down to $21.39. so i would wait untill it drops below this
price to be on the safe side. |
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vegas_iwish
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Not at all. |
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Ken G
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Microsoft is flat and might remain flat.
It might break up only
1)if it can give some great services on web cheap like how it did for PC's.
2) If yahoo and micosoft tie up to provide same services like google, ebay. I don't see great product line'd up in future.
3)Another way to do is increase the recurring cost due to Vista/Office to increase the bottom like even this is not possible as google provide free office on Web
Is it good long term NO there are better company's out there which will give better ROI than microsoft |
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ali
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Microsoft is too expensive Check out small cap resource stocks I am sure some of them have a lot of upside and potential |
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shiprepairwoman
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It has been flat for years, it seems done with growth since about 2000, when it started paying dividends it was because it was out of the growth mode. It they try to compete they get sued. I sold all mine and would probably never buy it again. |
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RobNyack
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screw you, you homophobic pig. |
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Common Sense
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Great... you're getting advice from strangers whose qualifications and motives you can't verify. That's a pretty strange way to invest. Do your own research. Come to your own conclusions. Read everything you can on investing. |
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