I just did a quick valuation video on Microsoft $MSFT (+0,27%) using FastGraphs and wanted to share some findings for discussion.
📈 Earnings Growth: ~13% annually
💸 Dividend: 0.76%, low but very well covered
📊 Valuation: Current P/E is ~33, while the 10-year average is around 30
💵 Free Cash Flow: Strong and increasing consistently
🔁 Buybacks: MSFT has been actively repurchasing shares
📉 Debt-to-Equity: Improving in recent years
🆚 S&P 500 Comparison: MSFT has significantly outperformed over 5 and 10 years
Despite a high valuation, the fundamentals are strong. It looks fairly valued if analysts' 13% forward growth holds up. The video includes charts, ratios, and side-by-side S&P comparisons.
🔗 Full breakdown here: https://youtu.be/Ev23FB7FZQc
Would love to hear your thoughts. Is MSFT still worth buying at this level or would you wait for a dip?