With recently appointed CEO Satya Nadella now at the helm, investors are re-evaluating their expectations for Microsoft's (NASDAQ:MSFT) future. The revision to the underlying thesis for the company apparently is a positive one; shares are hitting 52-week highs that haven't been reached since the dot-com boom in 2000. Between the share performance and the potential major strategic changes around the corner, it's a great time to return to valuation.

But what is Microsoft stock really worth? Fool contributor Daniel Sparks recently set out to put a number to the fair value of the shares. Using a discounted cash flow valuation model with some conservative estimates for net income growth and a 10% discount rate, he thinks shares are worth $46. Check out the following video to find why.

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Daniel Sparks has no position in any stocks mentioned. The Motley Fool owns shares of Microsoft. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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