DARK SECRETS: Microsoft stock is well below its real value making short put plays profitable - The Real Truth

Microsoft (MSFT) stock is still trading well below its real or true value, based on its powerful free cash flow. Today MSFT is at $331 or so on June 27, which is well below a target price of $379.54, which is over 15% higher. This is good for traders who short OTM puts as an income play and as a way to buy in automatically at a lower price.

In my June 9 Barchart article, “Microsoft Stock May Have Peaked, But It's Still On Track For Solid Growth,” I showed that for the year ending June 30, 2024, free cash flow (FCF) could rise to $84.9 billion. That FCF figure is derived by using a 36% FCF margin based on analysts' June 2024 fiscal year revenue expectations of $235.69 billion in revenue.