MSFT yearly cash flow: 24B - 27B - 31.6B : Growing 17% per year
People who want to INVEST must focus on cash flow and its growth. Instead people end up focusing on too many wrong things. Most people either don't understand or don't study deep enough. For example there is where little talk about how is office (largest business), or server/tools or the games (Halo, xbox) is doing. Additionally people are too much focused on windows8 instead of looking at combination of Windows7+windows8+Surface. What if Windows7 continued to sell at the previous quarters rate of 60Million/quarter and we have additional 80-100Million of Windows8 this quarter? Imagine..WIndows division more than doubling sequentially from 3.2B in rev last Q to 7b+ this Q. On a year over year basis that could be well over 50% growth on the windows/live division. Microsoft is a 40 dollar stock. "Price is what you pay and value is what you get eventually" so said Ben Graham
Good thing about investing is mostly people don't care about what is important like Cash flow and growth in cash flow. This is why there is opportunity created with gap between high value and low stock price offered by Mr Market.