Are Investors Undervaluing Microsoft Corporation (NASDAQ:MSFT) By 39%?
How far off is Microsoft Corporation ( NASDAQ:MSFT ) from its intrinsic value? Using the most recent financial data...
Has the U.S. Market valuation changed over the past few years?
|Tue, 28 Jun 2022||US$43.2t||US$19.5t||US$1.9t||14.9x|
|Thu, 26 May 2022||US$43.8t||US$19.5t||US$1.9t||15.2x|
|Sat, 23 Apr 2022||US$47.1t||US$18.8t||US$1.9t||16.7x|
|Mon, 21 Mar 2022||US$50.1t||US$18.9t||US$1.9t||16.3x|
|Wed, 16 Feb 2022||US$50.6t||US$18.8t||US$1.9t||16.3x|
|Fri, 14 Jan 2022||US$52.5t||US$18.3t||US$1.7t||17.3x|
|Sun, 12 Dec 2021||US$53.9t||US$18.2t||US$1.8t||17.2x|
|Tue, 09 Nov 2021||US$55.1t||US$18.1t||US$1.8t||18.5x|
|Thu, 07 Oct 2021||US$51.0t||US$17.4t||US$1.6t||17.8x|
|Sat, 04 Sep 2021||US$52.7t||US$17.4t||US$1.6t||17.5x|
|Mon, 02 Aug 2021||US$50.9t||US$17.3t||US$1.6t||17x|
|Thu, 06 May 2021||US$48.7t||US$16.3t||US$1.2t||19x|
|Sun, 07 Feb 2021||US$43.8t||US$15.6t||US$832.6b||18.3x|
|Sat, 31 Oct 2020||US$37.1t||US$15.5t||US$845.5b||16.4x|
|Tue, 04 Aug 2020||US$35.8t||US$15.4t||US$840.8b||17.1x|
|Fri, 08 May 2020||US$30.8t||US$15.9t||US$1.0t||14.1x|
|Mon, 10 Feb 2020||US$34.5t||US$15.9t||US$1.3t||17.2x|
|Sun, 03 Nov 2019||US$32.4t||US$15.8t||US$1.2t||17.1x|
|Wed, 07 Aug 2019||US$32.2t||US$15.7t||US$1.3t||16.8x|
Which sectors have driven the changes within the U.S. Market?
Which companies have driven the market over the last 7 days?
Alibaba Group Holding
Tesla is planning another stock split after completing its last split as recently as 2020. The split will make options more accessible to retail traders, but is otherwise a non-event. Regardless of the split, Tesla remains a high uncertainty stock but is probably trading near fair value today.
Amazon is a company that owns 5 main business segments which are highly successful. Amazon is currently incurring high capital expenditure due to investments in cloud infrastructure and streaming contents which are expected to be temporary headwinds. Amazon is now significantly undervalued which presents itself as a great investment opportunity for long term investors.
Apple has outperformed for decades, but the company is arguably still a bargain. I present three arguments why I believe Apple shares could trade considerably higher within the next 12-36 months. New market opportunities including (1) VR/AR and the Apple Car, (2) accelerating strength in Apple's service portfolio, and (3) continued financial engineering. I value AAPL shares based on a residual earnings framework and calculate a fair base-case target price of $247.51/share, implying upside of >75%.
Freeport-McMoRan is a copper company, and copper is susceptible to economic closures and economic worry. The company has dramatically improved its financial position from the last downturn, and we expect markets to rebound quickly. The company can generate double-digit FCF in 2023-2024 at current prices, and the decline represents a short-term buyback opportunity. Overall, we recommend taking advantage of the dip in Freeport-McMoRan's share price.
UNH has shown to be resistant to the effect of rising prices, both during and after inflationary periods. The inelastic demand for the company's services make it a good pick for a recession, as seen by its exceptional performance during the Great Recession. The stock has much higher valuation multiples than its competitors and appears to be overvalued at the current share price.
Johnson & Johnson