Um, is fair market value of Microsoft.


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The fair value of Microsoft can be assessed using various methods and metrics. Here are some insights:
- Peter Lynch's Fair Value: Using Peter Lynch's formula, the fair value of Microsoft is $289.891. This method considers the earnings growth rate and the trailing twelve-month EPS.
- Price-to-Earnings Ratio (P/E): The P/E ratio for Microsoft is 38.172, which is considered high compared to some other stocks. A high P/E ratio can suggest that the stock is overvalued or that investors expect high growth rates.
- Price-to-Sales Ratio (P/S): The P/S ratio for Microsoft is 13.682, which is also considered high. This ratio suggests that the market is valuing Microsoft's sales at a premium.
- Price-to-Book Ratio (P/B): The P/B ratio for Microsoft is 12.992, which is also above the industry average. This suggests that the market is willing to pay a premium for Microsoft's assets.
- Average Price Target and Consensus Rating: The average price target for Microsoft is $499.593, which is significantly higher than the current price. This suggests that analysts expect the stock to appreciate in value.
- Moving Averages: The 50-day moving average for Microsoft is $417.624, the 10-day moving average is $428.774, and the 5-day moving average is $437.154. The stock is currently trading above these moving averages, which is considered a bullish signal.
- Technical Indicators: The Relative Strength Index (RSI) for Microsoft is 83.885, which is in the overbought territory but still within the bullish range. The Moving Average Convergence Divergence (MACD) is 3.875, and the KDJ is 108.515. These indicators suggest that the stock is currently in an uptrend.
- Fundamental Metrics: Microsoft has a Basic EPS of $2.956, a Net Income of $21.94 billion6, a Return on Equity (ROE) of 28.78%6, and a Total Revenue growth rate of 17.03%6. These metrics indicate strong financial performance and growth.
Considering these factors, it is evident that Microsoft's fair value is a topic of debate. While some methods suggest a lower value, such as Peter Lynch's fair value, other metrics indicate that the current price may be reasonable or even undervalued. Investors should consider multiple factors and their own risk tolerance when determining the fair value of Microsoft.
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