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Your Valuation
10 June 2008 |
101
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Comments (1)
Valuation Details
| Member: | KiwiEMH |
| On: | 16 May 2008 |
| Views: | 101 |
| Comments: | 1 |
| Updated: | 4 hours ago |
| Ticker: | MSFT |
| Market: | NASD |
Microsoft has growth still to experience in the core business but it is reasonably predictable. That growth will slow over time. Despite a significant R&D spend - Microsoft doesn't have new hi-growth businesses that have the potential to significantly impact the share price. Microsoft is still a very valuable entity - but it isn't the growth story it had the potential to be.
A discount rate of 11.5% and terminal growth of 4%. EBITDA margins top out in the low to mid-40% range. Terminal CAPEX tops out at $2.5 billion - but that continues to be extensions to the core business not new innovation.