Microsoft Corp.

MSFT ·Technology, Software - Application, United States

Basic DCF — Fair Value

For mature companies with a steady growth rate. Typically not a useful model for financial companies (banks, insurers, etc).

FCF per share ($) Market Price ($) Projection Years Discount Rate (%) CAGR (%)

Fair Value —

Market Value —

vs. Fair Value —

Formula: Fair Value = Average( Per-Share Figure × (1 + CAGR)ⁿ, for n = 1…Years ) ÷ Discount Rate

Be Fearful When Others Are Greedy and Greedy When Others Are Fearful.