dude thugged out................you are not going through the thread in detail... go through it in detail before u reply ..(for future reference). Just to remind you....this is not something that some one is making a real investment decision that they are investing their all fund in microsoft....its a class project in which you have to justify why you might wanna include microsoft in your porfolio? thats about it...anyway just headsup.... newlynew, you seem more knowledgeable in this issue.... can you please tell me how to calculate the regression...(i know i did in stat) but not in finance yet....? or can u post a formula or procedure to calculate regression to find out under/overpriced of the shares, please? your informations are very helpful right now... thanks again.