DCF Model Conclusions on Microsoft (MSFT)

MSFT DCF Conclusions Shared

Hi Everyone -

One of my priorities for the upcoming 2 weeks is to do a DCF Model for the Magnificent 7 so that I can assess the range of upside/downside possibilities for the Nasdaq-100 and S&P 500.

I will start off with Microsoft first, given its combined importance within the Dow Jones (7% weight), S&P 500 (7.15% weight), and Nasdaq-100 (8.8% weight).

Before we get started, I posted on Instagram a Trade Recap that I executed upon from my pre-market note sent to members. Our view was that unless 5088 on ES (S&P 500 proxy) was taken out, the 2/26 Zero Days till expiry puts with 5060 Strikes and below would likely depreciate quickly in value, netting tactical Option players full premium if held til end of day.

I closed them at 50% premium evaporation.

Okay now let’s talk about Microsoft’s DCF conclusions, arguably one of the most important stocks in the market.

If you are an Intraday Operator or a Long-Term investor who wants to understand the market’s upside/downside potential, the analysis starts with understanding MSFT’s fair value.

It is no coincidence that “Support & Resistance” align with DCF values, and in this note, I’ll show you what I mean.

Discussion on MSFT DCF below. Very educational (and practical) for all.