<Reg, what's your view on Microsoft's current valuation? Is it overvalued, undervalued or fairly priced? What are its short-term, medium-term and long-term prospects? How do Microsoft's prospects compare to Netscape's prospects?>
Most of your questions have been answered at rcmfinancial.com (although it does need to be updated, I will not do that here, but I will notify you when I update my site's analysis). Since it is a decent amount of work, I will not rehash, but ask you to read it. For a quick recap on valuation:
- If risk free rate = 6.4% with low end growth, fair valuation is $273
- If risk free rate = 8.2% with low end growth, fair valuation is $113
- If risk free rate = 10% with low end growth, fair valuation is $79.86
- If risk free rate = 6.4% with moderate growth, fair valuation is $342
- If risk free rate = 8.2% with moderate growth, fair valuation is $150
- If risk free rate = 10% with moderate growth, fair valuation is $97
For actual P/E's check out rcmfinancial.com
<Which company will have the bigger Market Cap in five years?>
Sorry, but the batteries died in my crystal ball last night.
<Or are you standing in for Reginald because he's afraid to admit what a truly objective valuation analysis of Microsoft's current stock price would show?>
You must've been drinking when you posted that one!
<When you've given us your analysis, I'll let you know what I think.>
As long as you use sound, logical reasoning or back up your statements with sound numbers. |
