How do you arrive at 50?. Are you saying if Windows division grows compared to last year and sequentially from last quarter then MSFT will the proper multiple of 14.5 times forward earnings of 3.40 in Fy14? Muliple expansion because of growth perception is needed to lift MSFT to50
Currently still cheap, trading at pe of 14. But as we know it isn't the pe ratio that controls the price; it is the perception of how the company will do in the future. MSFT without a doubt has already gained the recognition as king of software, and it has also become too safe to invest. Being too safe, you are not getting much returns either. Now that it is branching into also a hardware company and developing softwares for those hardwares, we are at incomes from softwares and hardwares. Msft can monopolize and control the softwares and hardwares.