Microsoft Buy Rating Affirmed at Fair Value

2 months ago

Parkev Tatevosian, CFA

"What do I think about Microsoft stock? Whether it's buy, hold, or sell. Well, I think Microsoft stock is a fairly valued business. If you look at my intrinsic value calculation for Microsoft stock, I value it at 49 490. It's trading at 503. I apply a margin of safety of 5 to 10% in most cases. And so, this is within the margin of safety. So, I would call it a fairly valued business, but it's a Hall of Fame business. As I mentioned, revenue growth near 20%, operating margins approaching 50%, very strong competitive advantages, difficult for any business to encroach on its territory. I like the business at the current prices. I reiterated my buy rating today."

The speaker reaffirms a buy rating on Microsoft, citing its fair value based on an intrinsic value calculation and strong financial metrics such as near 20% revenue growth and operating margins approaching 50%. The rationale highlights Microsoft's competitive advantages and its status as a 'Hall of Fame business', making it a compelling long-term investment.

Related Stocks