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Is Microsoft (MSFT) now a value stock? Quite possibly, Eddy Elfenbein explains: The stock...

Is Microsoft (MSFT) now a value stock? Quite possibly, Eddy Elfenbein explains: The stock currently goes for 9.24x expected FY2012 EPS of $2.75, while the S&P 500 now goes for 11.17x expected S&P earnings of $101.73 over those same four quarters - meaning Microsoft’s valuation is 17% less than the overall market’s.
Comments (6)
  • SA Editor Stephen Alpher
    , contributor
    Comments (549) | Send Message
     
    3.2% dividend as well - better than the 30 year Treasury yield.
    1 Dec 2011, 04:50 PM Reply Like
  • Spencer Knight
    , contributor
    Comments (417) | Send Message
     
    Until MSFT produces new products it will be difficult for the share price to move substantially higher. Investors don't want to push a stock higher simply because it currently trades lower than the S&P 500. It's all about the future and MSFT has a steady future ahead. But the likelihood of revenue growth beyond comprehension is unlikely.

     

    It's even difficult to label MSFT a "buy and hold forever" stock because as we've seen the share price hasn't gone anywhere, but you do collect those dividends so maybe it is.
    1 Dec 2011, 05:02 PM Reply Like
  • Clayton Rulli
    , contributor
    Comments (2861) | Send Message
     
    Theres alot more to consider than the P/E ratio. MSFT is boring. Thats the problem.
    1 Dec 2011, 05:49 PM Reply Like
  • dividend_growth
    , contributor
    Comments (2896) | Send Message
     
    Microsoft's core problem is that its monopoly is at the end of its lifespan.

     

    But MSFT does have a few good puffs left as a Grahamite cigar butt.
    1 Dec 2011, 11:55 PM Reply Like
  • EdgarVega
    , contributor
    Comment (1) | Send Message
     
    Sure it is!! Monopoly's are good. and that is because companies like Coke, Microsoft and most large cap have a competitive advantage that most companies do not have. Buy and HOLD!!
    = Fair Value:
    $ 83.91

     

    Margin Of Safety:
    70%
    2 Dec 2011, 09:23 AM Reply Like
  • jim1157
    , contributor
    Comments (2) | Send Message
     
    Old retired guy that is layed up for rest off life do to Med stuff.
    Small time investor leaning toward High yield,good Div stocks. So I think "Boring" is good! Some of us need to invest for $ to live. I cannot work so my Dollars must & they must work hard'
    2 Dec 2011, 05:08 PM Reply Like
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