Purchase Solution

Fundamental Analysis for Microsoft

Not what you're looking for?

Ask Custom Question

I want to know the current fair value for Microsoft compared to the market using 3 models I believe are the best:
Discounted Cash Flow; Dividend Discount Model; Residual Income Model.
It should be explained properly on how you got your inputs or calculated them. Compare the fair value to the market and conclude with an executive summary with a recommendation of Buy, Sell or Hold.

The content should be :
1. Intro
2. Model 1
3. Model 2
4. Model 3
5. Executive Summary.

Purchase this Solution

Solution Summary

A fundamental analysis for Microsoft is examined in the solution.

Solution Preview

See the attached file.

Valuation Background:
There are several valuation techniques which are applied to get a sense of the computed value of a company as compared to the actual value at which the stock price currently trades. There is no one best method for stock valuation which can suit all type of organization. The valuation technique will differ from industry to industry.
In the given analysis we have computed the value of Microsoft under three different valuation techniques as below:
1. DCF method: Discounted cash flow (DCF) analysis uses future free cash flow projections and discounts them (most often using the weighted average cost of capital) to arrive at a present value, which is used to evaluate the potential for investment. If the value arrived at through DCF analysis is higher than the current cost of the ...

Solution provided by:
Education
  • Chartered Accountant (Equivalent to CPA in US), Institute of Charted Accountants of India
  • Bachelor of Commerce, West Bengal University
Recent Feedback
  • "I got this feedback and I wanted to know if you can explain it to me. I noticed something within your workings which I believe is incorrect.  It looks like you've mistaken the Debt ratio for the Equity Multiplier.  You've done a calculation to determine Return on Equity (ROE) but if you take a look at the ratios provided for us you'll see ROE listed on the bottom line already.  You can use ROE, Profit Margin and Total Asset Turnover to figure out the Equity Multiplier amount.  Equity multiplier is not provided for us and we need to calculate it.  I really hope this is helpful to you.  "
  • "Very attentive to detail. Answers are designed in easy to understand format."
  • "Fast response and thorough answer"
  • "thank you very much! "
  • "thank you so much !!!!!!!"
Purchase this Solution


Free BrainMass Quizzes
Production and cost theory

Understanding production and cost phenomena will permit firms to make wise decisions concerning output volume.

Situational Leadership

This quiz will help you better understand Situational Leadership and its theories.

SWOT

This quiz will test your understanding of the SWOT analysis, including terms, concepts, uses, advantages, and process.

Employee Orientation

Test your knowledge of employee orientation with this fun and informative quiz. This quiz is meant for beginner and advanced students as well as professionals already working in the HR field.

Team Development Strategies

This quiz will assess your knowledge of team-building processes, learning styles, and leadership methods. Team development is essential to creating and maintaining high performing teams.