Microsoft Corporation

MSFT

386.84 (-0.27%) 1.05

2.88(T)

Information Technology

Software

Microsoft Corporation develops and supports software services devices and solutions worldwide. The Productivity and Business Processes segment offers office exchange SharePoint Microsoft Teams office 365 Security and Compliance Microsoft viva and Microsoft 365 copilot; and office consumer services such as Microsoft 365 consumer subscriptions Office licensed on-premises and other office services. This segment also provides LinkedIn; and dynamics business solutions including Dynamics 365 a set of intelligent cloud-based applications across ERP CRM power apps and power automate; and on-premises ERP and CRM applications. The Intelligent Cloud segment offers server products and cloud services such as azure and other cloud services; SQL and windows server visual studio system center and related client access licenses as well as nuance and GitHub; and enterprise services including enterprise support services industry solutions and nuance professional services. The More Personal Computing segment offers Windows including windows OEM licensing and other non-volume licensing of the Windows operating system; Windows commercial comprising volume licensing of the Windows operating system windows cloud services and other Windows commercial offerings; patent licensing; and windows Internet of Things; and devices such as surface HoloLens and PC accessories. Additionally this segment provides gaming which includes Xbox hardware and content and first- and third-party content; Xbox game pass and other subscriptions cloud gaming advertising third-party disc royalties and other cloud services; and search and news advertising which includes Bing Microsoft News and Edge and third-party affiliates. The company sells its products through OEMs distributors and resellers; and directly through digital marketplaces online and retail stores. The company was founded in 1975 and is headquartered in Redmond Washington.

Holdings:

Cost basis:

Valuation Overview Growth Estimates Per Share Data Similar Companies Historical Data Calculators

Microsoft Corporation (MSFT) price target and intrinsic value estimate

MSFT's fair price estimate is $556.6

This valuation is based on a fair P/E of 34.5 and EPS estimates of $16.15

The median analyst price target for MSFT is $500.0.

Analyst price targets range from $420.0 to $650.0

Is MSFT overvalued or undervalued?

MSFT is currently trading at $386.84

MSFT is undervalued by 30% using the pevaluation method.

MSFT is undervalued by 23% compared to median analyst price targets.

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Valuation

PEvaluation

Current price

$387

Undervalued

Low

$417

Median

$557

High

$696

Fair P/E

Margin of safety

Analyst valuation

Current price

$387

Undervalued

Low

$420

Median

$500

High

$650

Strong Buy14

Buy38

Hold5

Sell0

Strong Sell0

Discounted cash-flow

N/A
Negative FCF or FCF estimates

TTM FCFFCF est.Growth FCFTerminal FCF

Discount
rate10%

Terminal
rate5%

Growth p.
length5y

Growth p.
rate10%

Economic moat: Very wide

Overview

Market data

Market cap:$2.88(T)

Enterprise value:$2.91(T)

Total Equity:$302.69(B)

Shares outstanding:7.43(B)

Div. yield:0.82%

P/S:10.98

P/E:31.00

P/FCF:41.07

P/B:9.50

EPS:$12.5

FCF per share:$9.4

Dividend per share:$3.2

Income (TTM)

Revenue$261.80(B)

Gross profit$181.72(B)

EBITDA$142.04(B)

Net income$92.75(B)

Gross margin69.4%

Net margin35.4%

Balance sheet

Total assets$533.90(B)

Total liabilities$231.20(B)

Cash & Short-term inv.$71.56(B)

Long-term debt$39.72(B)

Debt issued$1.60(B)

Debt repaid$-31.37(B)

Cash flow (TTM)

FCF$70.03(B)

CapEx$-55.55(B)

Dividends paid$-22.89(B)

Stock issued$2.02(B)

Stock repurchased$-17.52(B)

Stock-based comp.$11.32(B)

Per Share Data

Zoom x1

Show Growth

Growth Estimates

Revenue

CAGR: 13.5%

FY+1$277.13(B)

FY+2$315.96(B)

FY+3$363.55(B)

FY+4$408.85(B)

FY+5$459.42(B)

Net Income

CAGR: 15.0%

FY+1$98.40(B)

FY+2$112.03(B)

FY+3$130.96(B)

FY+4$148.57(B)

FY+5$171.86(B)

EPS

CAGR: 15.0%

FY+1$13.18

FY+2$15.04

FY+3$17.67

FY+4$19.96

FY+5$23.07

FCF per share

CAGR: 16.1%

FY+1$17.52

FY+2$23.31

FY+3$38.06

FY+4$27.44

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Historical Financials

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YearlyQuarterly

Income

RevenueOperating IncomeNet IncomeCOGSGross ProfitTotal OpEx.R&DSG&AInterest ExpenseInterest IncomePre-tax incomeIncome tax

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Balance sheet

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Per share data

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Calculators

Future P/E valuation

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