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Technology Stocks : How high will Microsoft fly? -- Ignore unavailable to you. Want to Upgrade?

To: David Howe who wrote (71326)	7/18/2002 7:36:43 PM
From: jonkai	Respond to of 74651

explain MSFT's rather low Cash Flow to Market Cap ratio. MSFT looks very cheap, very cheap compared to its peers, from a cash flow perspective. Cash flow won't come down anything close to enough to explain this valuation deviation. actually Cash flow from Exercising options this year came out to be about $1.497 billion cash flow from the tax credits (from these ESOs) was $1.596 billion that is about $3 billion of MSFT's cash flow...... i believe a lot of people would notice if $3 billion of MSFT's cash every year suddenly dried up...... and this $3 billion is already down from the year before by almost $1 billion... jon.