ebw on 20 January 2012
| disolitude said: Man, looking at this Microsoft is seriously undervalued right now compared to some of its peers on a P/E or FCF basis... |
I don't agree Microsoft is undervalued. Its P/E of 10 is about on par with other slow-growth stocks like Exxon. Their core business of Windows sales is stagnating (Windows licensing has fallen short of expectations for the last year or so).
Apple's price is high but is still undervalued: its P/E has been stuck at 15 even though it continues to grow at a ridiculously fast rate. Compare that to Amazon's P/E of 100.
