MSFT buy or no?

u/BarracudaVivid8015 · Reddit — r/ValueInvesting · March 24, 2026 at 16:10 · ⬆ 22 pts · 💬 90 comments | View on Reddit ↗

AI Summary

Summary

The author states they have started accumulating Microsoft (MSFT) shares at current price levels (implied to be around $370 based on comments).
The post asks the community for their thoughts on buying MSFT after its recent drawdown.
Quality assessment: Noise. The original post contains no fundamental analysis or due diligence, merely stating a position and asking for opinions.

Score 22

Comments 90

Upvote % 76%

Trade Ideas

u/BarracudaVivid8015 Reddit r/ValueInvesting

MSFT's EV-based FCF yield is currently around 3.2% based on $75B normalized FCF. A true margin of safety for a software business requires at least a 4.0% yield, which translates to a target price of ~$260. Avoid buying MSFT at $370 as you are paying a massive premium for growth without a margin of safety. MSFT's growth rate could accelerate, justifying the lower FCF yield and premium valuation.

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This Reddit post, published March 24, 2026, features u/BarracudaVivid8015 discussing MSFT. 1 trade idea extracted by AI with direction and confidence scoring.

Speakers: u/BarracudaVivid8015 · Tickers: MSFT