MSFT @ $400

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Stocks A to Z / Stocks M / Microsoft (MSFT)

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No. of Recommendations: 7

Microsoft is now trading above $400 / share, which puts it at the very upper end of its previous valuation range. They are going to report earnings next week so these numbers could change, but using $2.75 / share (+18% YoY) as an estimate we would get

TTM EPS     : $10.88
Share Price : $403.00
PE x        : 37x

from my data it last traded at this level at the end of 2021-Q3(CY) when it was at $322 / share (TTM EPS was $8.50). Earnings growth after this period was decent ($8.50->$8.95->$9.14->$9.20->$9.28) but the stock traded down to $2.38 per share; so not great news for shareholders.

tecmo
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