Microsoft's intrinsic value is 1.2 trillion USD, according to my estimates and calculations.
Microsoft's current market capitalisation currently stands at 1.92 trillion USD on the Nasdaq.
I think Microsoft, being a mature company, yes in the hot technology sector, but still a large, developed company does not make enough in net income and revenue a year to support a 1.92 trillion USD valuation/market capitalization.
Market participants seem to be extrapolating that Microsoft is going to grow its revenue by 12 % a year, year on year, for the next 10 years + and keep or slightly increase its stellar net profit margin of circa 30 % currently.
In the current tenuous political and economic environment, the above assumption is simply unrealistic, I think.
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