With recently appointed CEO Satya Nadella now at the helm, investors are re-evaluating their expectations for Microsoft's (MSFT 0.22%) 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.