Joseph Carlson After Hours on $MSFT (Nov 2, 2026)
MSFT is a great company trading near fair value at over $500, with a $550 target implying 6-7% upside; at 25x forward earnings and a 1.57% free cash flow yield, the speaker expects it to keep growing but sees it as not significantly undervalued after a 10% recovery this year.
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Next, we have Microsoft. This is holding number six, valued at $110,000, with profits of $56,000. This was a truly great investment. I wish I had bought more Microsoft shares at the beginning, but it has always been a company in my portfolio.
I remember buying this stock at around $200 to $220, and I told investors that I thought it was an excellent deal . And here we are now at a price of over $500 , and I still believe the company is undervalued .
But I think this stock is now trading at a price a little closer to its fair value. I have set Microsoft's fair value, or target price, at $550. This means there is a potential increase of 6-7% from its price today.
Again, this is not a final and definitive price. Companies don't stop at reaching fair value, but this is merely an estimate of what I believe to be a reasonable price that the company deserves.
When I look at Microsoft, there is no doubt that it is a great company, but it is already trading at a forward price-to-earnings ratio of 25 and a free cash flow yield of 1.57%.
It has made a tremendous recovery this year as well. Therefore, the stock rose by 10% during the year. The stock has been falling sharply amid major concerns about cloud computing and software.
But he recovered a lot. So, when I look at this stock, and consider the current situation and valuation, I think we are close to fair value. At the $550 level , I think the stock will continue to grow, but I don't think it's significantly undervalued.
What this channel has said about $MSFT
Joseph Carlson After Hours has 6 calls on this stock; only the adjacent ones are shown.