Advanced Valuation Report FNCE201 - Corporate Finance AY 2021/2022

Valuation 7 5.1 Dividend Discount Model 7 5.2 Discount Cash Flow Model 8 5.3 Relative Valuation 10 6. We believe that Microsoft Corporation should have a Strong BUY rating with a potential upside of 13% due to the following reason: Strong Natural Growth Drivers Favouring Microsoft’s Revenue Generating Products Intelligence Cloud Segment (Azure and Microsoft Cloud Services) – We believe that with the appeal of cloud computing to a variety of businesses and increased adoption rates will help ensure that Microsoft, being the second largest provider of Cloud Infrastructure,