Microsoft: At This Stage Looks Pretty Undervalued [View article]
This DCF analysis considers operating cash flow and capex (additions to property and equipment) figures as they are (until cash parked abroad isn't repatriated the tax advantage is there). Let's assume to incorporate your assumptions into the model. To keep things as simple as possible, we may see what happens by reducing computed FCF by $6.5 billion. This figure was found in an article published last October 10, 2012 in businessweek.com titled "To Tax, or Not to Tax, Overseas Cash Hoards" by Elizabeth Dwoskin about shaving tax bill by booking profits in offshore subsidiaries ( http://buswk.co/126j3LF ). Given the new assumptions (100% of cash repatriation), the final calculation gives a value per ordinary share equal to $30.15*, which is about 10.6% higher than the closing price of $27.25 on January 18, 2013. So, at the end, where does the truth stay? May be in the middle: still pretty undervalued. *This refers to the date when the article was written, i.e. before the Company released its FY13 Q2 earnings.
Microsoft: At This Stage Looks Pretty Undervalued [View article]
Microsoft: At This Stage Looks Pretty Undervalued [View article]
Adobe: No Room For More Upside Potential [View article]