From Motley Fool:
As of December 2012, Microsoft had $64.8 billion in net cash, or $7.70 per share. Microsoft is expected to earn $2.85 per share in fiscal year 2013. With the current trading price of $27.55 per share, Microsoft is valued at 7x forward P/E, net of cash. If Microsoft uses half of its earnings to pay preferred dividends with a 5% yield, Microsoft could issue $155 billion, or $18.35 per share in preferred stock face value. With the adjusted EPS of $1.93, the value to common equity would be $13.50 per share. Thus, the total value of Microsoft would be $39.55 per share, a 43.5% upside potential.
Plausible! No matter how you look at msft, trading at these levels, with the amount of cash that it has and the number of innovations, and it is still the leading software company of the world, still controlling most if not all PC's make msft the most valuable and safest investment in the market. Without a doubt!!!!
This stock is the most undervalue and underappreciated stock on the planet. The innovations of Windows 8 that will be a part of every mobile devices and PC's will dominate and make msft King once again. Surface Pro (not Surface but the PRO) is sold out and production is ramped up. As I mentioned before, the Surface RT didn't sell well because it was the first version of its kind. Now the Pro, the second version, is sold out!!! Every touchpad companies are forced to cut down in size and price due to msft's Windows 8 and Surface-- the fear has just begun. College kids are sporting Surface like laptops at airports and campuses-- this is the trend of buying one computer that has everything!
This summer, the Xbox Kinect will revolutionize the gaming industry. NO MORE JOYSTICKS!!!! msft will be $50/shre by summer. Its market capital will be bigger than Aapl.