Microsoft Isn't Nearly as Expensive as You Think
Though Microsoft has perpetually been considered somewhat expensive in recent years, that hasn't stopped the company from regularly crushing earnings estimates, with the stock following suit on the way to incredible returns. The trend continued last night when the Redmond, Washington-based tech conglomerate reported strong second-quarter fiscal earnings, with the stock surging some 4% in after-hours trading.
And yet, some might still scoff at Microsoft's rather lofty forward P/E ratio north of 30, based on analysts' estimates for the current fiscal year ending in June. This may be especially true since some of its other large-cap technology peers are growing revenue at a faster pace, yet with valuations below that of the cloud and software giant.
However, Microsoft is actually far cheaper than these metrics would suggest. Here's why.
Source Fool.com
