MSFT

Microsoft Corp

TMT


Presented:06/24/2019
Price:$137.78
Cap:$1,055.78B
Current Price:$418.74
Cap:$3,112.51B

Presented

Date06/24/2019
Price$137.78
Market Cap$1,055.78B
Ent Value$868.05B
P/E Ratio30.62x
Book Value$12.38
Div Yield1.34%
Shares O/S7,662.82M
Ave Daily Vol23,511,689
Short IntN/A

Current

Price$418.74
Market Cap$3,112.51B
Microsoft Corp. engages in the development and support of software, services, devices, and solutions. Its products includes operating systems; cross-device productivity applications; server applications; business solution applications; desktop and server management tools; software development tools; and video games. It also offers personal computers, tablets, gaming and entertainment consoles, other intelligent devices, and related accessories. It operates through the following business segments: Productivity and Business Processes; Intelligent Cloud; and More Personal Computing. The Productivity and Business Processes segment is comprised of products and services in the portfolio of productivity, communication, and information services of the company spanning a variety of devices and platform. The Intelligent Cloud segment refers to the public, private, and hybrid serve products and cloud services of the company which can power modern business. The More Personal Computing segment encompasses the products and services such as windows operating system, devices, gaming platform, and search engines. The company was founded by William Henry Gates III in 1975 and is headquartered in Redmond, WA.

Publicly traded companies mentioned herein: Microsoft Corp (MSFT)

Highlights

Although Microsoft Corp (MSFT) is a “consensus long” at peak trading multiples, the presenter is bullish on its growth prospects and attractive return profile even at current levels. He sees avenues to grow revenue and EPS double digits and high-teens to 20% over the next several years, respectively. While this growth story plays out, the company has the potential to grow FCF per share 20%. Applying a modest 10x multiple on his FY ’22 sales estimate leads the presenter to a price target of ~$225 over the next few years without any current reason to sell in the meantime. 

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Idea Discussion

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