< This cool cool MSFT price is getting real interesting yum yum. A 43Billion dollar bank account for pennies on the dollar. >
That's not pennies on the dollar. It's dollars on the penny:
There are 5.26B shares of MSFT outstanding, so that $43B is $8.17 per share. The correct multiple of cash is 1.0, so minus the cash, MSFT's share price is $58, which is still a high P/E at 34. I know, MSFT shareholders want to compare their P/E to those with ridiculous valuations like SUNW, and then say that MSFT's valuation is too low, but obviously that's foolish. Firstly, SUNW is overvalued as any MSFT shareholder will agree, and secondly, MSFT's OS product is a maturing, stagnating one. Their "new" consumer OS is still based on DOS for pete's sake.
Even AAPL, whose market has MUCH more room for growth than MSFT, only has a P/E of 28.19, including the cash. AAPL has about $4B cash, or $12.30/share, so minus cash, their price is about $44/share, with a P/E of 22. |
