MSFT should be at 40 if ORCL deserves to be at 33
ORCL is expected to earn 2.65 in the coming fiscal year ending in May 2013. Micrsoft is expected to earn $2.95 in the same fiscal year endin in June 2013. Using same PE ratio MSFT should be at 37. But MSFT has $6 more net cash per share compared to ORCL. So MSFT should be at 43. Conservatively MSFT is a 40 dollar stock. MSFT's growth over the last three years and next three years is higher than ORCL and MSFT is a more diversified franchise.