Microsoft (MSFT) may no longer be a growth story, but its products are too deeply embedded into...

|About: Microsoft Corporation (MSFT)|By:, SA News Editor

Microsoft (MSFT) may no longer be a growth story, but its products are too deeply embedded into the IT universe for the company to trade at such a low valuation, claims Stephen Simpson. Simpson's discounted cash flow model for the company, which uses a 10% discount rate and assumes just 2% annual free cash flow growth, still turns up a valuation in the high $30s. (earlier)