Microsoft MSFT

Not as undervalued as AAPL, but definitely undervalued.

Here’s the Trefis view. They see it worth $42 versus current $26-27.

http://www.trefis.com/stock/msft/articles/160962/an-overview-of-microsofts-key-divisions-and-our-42-valuation/2013-01-04?from=email%3Anotd

 

Example:

Microsoft depends on Office’s dominance

While Microsoft’s Windows OS is the product that garners the most attention, Microsoft’s biggest revenue driver is Microsoft Office productivity suite. This segment generated approximately $23 billion in revenue in 2011, and we expect this to grow to $26 billion by 2016. The division has the highest margins for Microsoft at around 60%, which is primarily due to its dominant 95% market share in the productivity suite market.

 

 

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s