Recent Transfer: Microsoft Corporation (MSFT)

Published on January 31, 2017 at 7:12 am by FerdiS, DivGro in Dividend Stocks, News, Stock Analysis, Tech

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After adding these shares to my existing MSFT position, I now own 140 shares at an average cost basis of $30.06, while the average YoC of these shares is 5.19%.

Here is a price history chart showing my buy prices and the average cost basis (pink line):

MSFT is performing very well and is DivGro’s 7^th home run (1) stock. I call stocks with total returns that exceed my initial investment home runs.

Fair Value Estimates

My fair value estimate of MSFT is $57.82.

In comparison, Morningstar’s fair value estimate is $63.00, Finbox.io’s fair value estimate is $58.12, and Tipranks’ average price target is $68.30. S&P Capital IQ’s fair value calculation is $59.90.

Finbox.io presents a complete breakdown of its fair value estimate as well as range visualizers, not only for its estimates based on 12 different models, but also for Wall Street analysts’ targets and the stock’s 52-week trading range (see below, left).

I like Simply Wall St’s snowflake graphic, which presents a visual summary of a stock’s fundamentals and investment profile. You can read more about the company’s analysis model at Github.

I also use F.A.S.T. Graphs, a fundamentals analysis tool that correlates earnings and market price. In the following 10-year chart for Microsoft Corporation (NASDAQ:MSFT), it is clear that the stock is trading at a premium, as the price line (black) has moved well above the correlated earnings line (orange). Two years of future earnings estimates are included, indicating a price target of $48.60 by June 2018.