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.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis -- even one of our own -- helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.