Despite some of the challenges in its core business, Microsoft (NASDAQ:MSFT) shares are not expensive by any measure. The valuation metrics are firmly in value territory, and cash flow remains solid. Value investors can rest easy knowing that the 3% dividend yield is safe considering how much free cash flow that Microsoft generates.

At the same time, there don't appear to be any positive catalysts on the horizon, and PC headwinds may continue to weigh on results. There are some areas where Microsoft can capitalize, but it will need to execute on its transition to a devices-and-services company.

In the following video, Fool contributor Evan Niu, CFA, and Eric Bleeker, CFA, discuss how Microsoft looks at current prices.