Is Microsoft's Stock Overvalued Or Undervalued?

Benzinga2022-01-17

$Microsoft Corporation(MSFT)$ shares have outperformed the S&P 500 in the past year, generating a total return of 42%.Microsoft is still putting up impressive growth numbers. But with a $2.31 trillion...

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Comments

GggSlimeR
2022-01-18
GggSlimeR
Do not like my comment
Flyboy
2022-01-18
Flyboy
Ok
SSVC
2022-01-18
SSVC
Yup
TripleWin
2022-01-18
TripleWin
[Like]
KelvinChan
2022-01-18
KelvinChan
Nice
- KelvinChan:
  Good
MrInvestor
2022-01-18
MrInvestor
Microsoft is the moat

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But with a $2.31 trillion...</p>\n\n<a href=\"https://www.benzinga.com/general/education/22/01/25061574/is-microsofts-stock-overvalued-or-undervalued\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"MSFT","symbol_name":"微软","start_time":0,"source_url":"https://www.benzinga.com/general/education/22/01/25061574/is-microsofts-stock-overvalued-or-undervalued","article_id":"1177851470","we_media_id":null,"thumbnails":[],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=1177851470","pubTimestamp":1642430618,"columns":[],"sourceInfo":{"source_id":"lsy1606299360108","name":"Benzinga"},"weMediaInfo":null,"summary":"$Microsoft Corporation(MSFT)$ shares have outperformed the S&P 500 in the past year, generating a to","collect":0,"end_time":0,"defaultTopTitle":"benzinga.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"MSFT":"微软"},"translate_title":"微软的股票是被高估还是被低估？","themeId":"","isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"MSFT":0.9},"content_text":"$Microsoft Corporation(MSFT)$ shares have outperformed the S&P 500 in the past year, generating a total return of 42%.Microsoft is still putting up impressive growth numbers. But with a $2.31 trillion market cap, some investors are wondering if there’s any value left in Microsoft stock.Earnings: A price-to-earnings ratio (PE) is one of the most basic fundamental metrics for gauging a stock’s value. The lower the PE, the higher the value. For comparison, the S&P 500’s PE is currently at about 29.5, nearly double its long-term average of 15.6.Microsoft’s PE is currently 34.0, slightly higher than the S&P 500 average as a whole. Microsoft’s PE is also up 30.3% over the past five years, suggesting its earnings multiple is on the high end of its historical range.Growth: Looking ahead to the next four quarters, the S&P 500’s forward PE ratio looks much more reasonable at just 20.9. Unfortunately, Microsoft’s forward earnings ratio of 28.8 doesn’t make the stock undervalued at its current price. In fact, it appears to be slightly overvalued compared to technology sectorpeers that are currently averaging a 27.9 forward earnings multiple.However, when it comes to evaluating a stock, earnings aren't everything.Growth rate is also critical for companies that are rapidly building their bottom lines. The price-to-earnings-to-growth ratio (PEG) is a good way to incorporate growth rates into the evaluation process. 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