Financial Valuation of Microsoft Corporation
| Thesis title: | Financial Valuation of Microsoft Corporation |
|---|---|
| Author: | Katsebo, Antonina |
| Thesis type: | Bachelor thesis |
| Supervisor: | Ali, Tanweer |
| Opponents: | Pernica, Karel |
| Thesis language: | English |
| Abstract: | The bachelor thesis aims to perform a comprehensive financial valuation of Microsoft Corporation, which can be beneficial for potential investors and managers for reasonable decision-making. For this purpose, modern financial methods are applied in this work, such as ratio and comparative analysis, discounted cash flow (DCF) model, sensitivity analysis, and Monte Carlo simulation. Based on the analysis done, Microsoft has a strong financial and strategic position in the software market compared to its nearest competitors. The intrinsic price of the company, found using the DCF model, shows that the current share price (424.59$) is undervalued.The expected market return rate, revenue growth rate, and perpetual growth rate are factors that have the highest influence on the intrinsic share price. Consequently, the findings suggest that Microsoft Corporation presents a compelling investment opportunity. |
| Keywords: | financial valuation; Microsoft; investment; sensitivity; DCF model |
| Thesis title: | Financial Valuation of Microsoft Corporation |
|---|---|
| Author: | Katsebo, Antonina |
| Thesis type: | Bakalářská práce |
| Supervisor: | Ali, Tanweer |
| Opponents: | Pernica, Karel |
| Thesis language: | English |
| Abstract: | The bachelor thesis aims to perform a comprehensive financial valuation of Microsoft Corporation, which can be beneficial for potential investors and managers for reasonable decision-making. For this purpose, modern financial methods are applied in this work, such as ratio and comparative analysis, discounted cash flow (DCF) model, sensitivity analysis, and Monte Carlo simulation. Based on the analysis done, Microsoft has a strong financial and strategic position in the software market compared to its nearest competitors. The intrinsic price of the company, found using the DCF model, shows that the current share price (424.59$) is undervalued.The expected market return rate, revenue growth rate, and perpetual growth rate are factors that have the highest influence on the intrinsic share price. Consequently, the findings suggest that Microsoft Corporation presents a compelling investment opportunity. |
| Keywords: | investment; Microsoft; financial valuation; DCF model; sensitivity |
Information about study
| Study programme: | Bachelor of Business Administration |
|---|---|
| Type of study programme: | Bakalářský studijní program |
| Assigned degree: | Bc. |
| Institutions assigning academic degree: | Vysoká škola ekonomická v Praze |
| Faculty: | Faculty of Business Administration |
| Department: | Department of strategy |
Information on submission and defense
| Date of assignment: | 1. 3. 2024 |
|---|---|
| Date of submission: | 15. 5. 2024 |
| Date of defense: | 11. 6. 2024 |
| Identifier in the InSIS system: | https://insis.vse.cz/zp/87864/podrobnosti |