Microsoft Corporation (MSFT) price target and intrinsic value estimate
MSFT's fair price estimate is $496.7
This valuation is based on a fair P/E of 30.8 and EPS estimates of $16.15
The median analyst price target for MSFT is $480.0.
Analyst price targets range from $415.0 to $650.0
Is MSFT overvalued or undervalued?
MSFT is currently trading at $394.04
MSFT is undervalued by 26% using the pevaluation method.
MSFT is undervalued by 22% compared to median analyst price targets.
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Overview
Income (TTM)
Balance sheet
Cash flow (TTM)
Per Share Data
Growth Estimates
Revenue
CAGR: 12.8%Net Income
CAGR: 14.8%EPS
CAGR: 15.1%FCF per share
CAGR: 15.8%Similar Companies
Historical Financials
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Income
| FY2005 | FY2006 | FY2007 | FY2008 | FY2009 | FY2010 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 | FY2021 | FY2022 | FY2023 | FY2024 | TTM | 5Y avg | 5Y CAGR | |
| Revenue | 143.01(B) | 168.09(B) | 198.27(B) | 211.91(B) | 245.12(B) | 261.80(B) | 193.28(B) | 14% | |||||||||||||||
| COGS | 46.08(B) | 52.23(B) | 62.65(B) | 65.86(B) | 74.11(B) | 80.09(B) | 60.19(B) | 13% | |||||||||||||||
| Gross Profit | 96.94(B) | 115.86(B) | 135.62(B) | 146.05(B) | 171.01(B) | 181.72(B) | 133.09(B) | 15% | |||||||||||||||
| Total OpEx. | 43.98(B) | 45.94(B) | 52.24(B) | 57.53(B) | 61.58(B) | 64.00(B) | 52.25(B) | 9% | |||||||||||||||
| Â Â R&D | 19.27(B) | 20.72(B) | 24.51(B) | 27.20(B) | 29.51(B) | 31.17(B) | 24.24(B) | 11% | |||||||||||||||
| Â Â SG&A | 24.71(B) | 25.22(B) | 27.73(B) | 30.33(B) | 32.06(B) | 32.83(B) | 28.01(B) | 7% | |||||||||||||||
| Operating Income | 52.96(B) | 69.92(B) | 83.38(B) | 88.52(B) | 109.43(B) | 117.71(B) | 80.84(B) | 20% | |||||||||||||||
| Interest Expense | -2.59(B) | -2.35(B) | -2.06(B) | -1.97(B) | -2.94(B) | -2.68(B) | -2.38(B) | 3% | |||||||||||||||
| Interest Income | 2.68(B) | 2.13(B) | 2.09(B) | 2.99(B) | 3.16(B) | 2.54(B) | 2.61(B) | 4% | |||||||||||||||
| Pre-tax income | 53.04(B) | 71.10(B) | 83.72(B) | 89.31(B) | 107.79(B) | 113.61(B) | 80.99(B) | 19% | |||||||||||||||
| Income tax | -8.76(B) | -9.83(B) | -10.98(B) | -16.95(B) | -19.65(B) | -20.86(B) | -13.23(B) | 22% | |||||||||||||||
| Net Income | 44.28(B) | 61.27(B) | 72.74(B) | 72.36(B) | 88.14(B) | 92.75(B) | 67.76(B) | 19% |
Cash flow
Balance sheet
Per share data
Ratios
Margins
Returns
Shares outstanding
Market Cap.
Tools
Future P/E Valuation
| Projection Years | |
| Base Revenue | |
| Revenue Growth Rate | |
| Final Net Margin | |
| Final P/E Ratio | |
| Discount Rate |
What is the Future P/E Value Calculator?
This valuation calculator determines the fair price of a stock by projecting revenue, applying a net margin, and using a target P/E multiple.
How to Use This P/E Intrinsic Value Calculator?
Enter the base revenue, growth rate, final net margin, discount rate and fair P/E ratio.
Which Companies is This Method Suited For?
This method is suited for growth companies with increasing revenues, for which you can estimate the future net margin and assign a fair final P/E.
Dividend Discount Model
| Annual Dividend | |
| First Stage Length (Years) | |
| First Stage Growth Rate | |
| Final Growth Rate | |
| Discount Rate |
What is the Dividend Discount Model (DDM)?
The DDM is a stock valuation approach that estimates the intrinsic value of a stock based on its expected future dividends, discounted to present value.
How to Use This DDM Calculator?
Enter the annual dividend, expected growth rate, and discount rate to compute the intrinsic value.
Which Companies is This Method Suited For?
The DDM is best suited for valuing mature, dividend-paying companies that have a consistent history of paying dividends and are expected to continue doing so with a stable growth rate.
Discounted Cash Flow
| Forecast years | |
| Terminal Growth Rate | |
| Discount Rate |
Free cash flow estimates:
What is the Discounted Cash Flow (DCF) Model?
The DCF model is a fundamental valuation method used to estimate the intrinsic value of a company based on the present value of future free cash flows.
How to Use This DCF Calculator?
Enter the expected free cash flows, the terminal growth rate, and the discount rate.
Which Companies is This Method Suited For?
The DCF model is suitable for valuing mature or growth companies with reasonably predictable future cash flows. It can be challenging to apply to companies with uncertain cash flows.
Discounted Cash Flow (exit mult.)
| Forecast years | |
| Exit FCF Multiple | |
| Discount Rate |
Free cash flow estimates:
What is the Discounted Cash Flow (DCF) Model?
The DCF model is a fundamental valuation method used to estimate the intrinsic value of a company based on the present value of future free cash flows.
How to Use This DCF Calculator?
Enter the expected free cash flows, an exit FCF multiple, and the discount rate.
Which Companies is This Method Suited For?
The DCF model is suitable for valuing mature or growth companies with reasonably predictable future cash flows. It can be challenging to apply to companies with uncertain cash flows.
Graham Formula
| Earnings Per Share | |
| Expected Growth Rate | |
| Government Bond Rate |
What is the Graham Number with Growth?
The Graham Number formula with growth is an enhancement of Benjamin Graham's original intrinsic valuation method. It uses the earnings per share (EPS) and expected growth rate to estimate the fair value of a stock.
How to Use This Graham Number Calculator?
Enter the earnings per share (EPS), expected growth rate, and the bond yield to compute the intrinsic value of a stock.
Which Companies is This Method Suited For?
The Graham Number Calculator is best suited for valuing companies with positive earnings and a predictable growth rate.
Future Dividend Yield
| Base Dividend | |
| Current Price | |
| Number of Years | |
| Dividend Growth Rate |
What is the Future Yield Calculator?
The Future Yield Calculator helps you estimate the future dividend yield of a stock based on its current dividend, price, and expected dividend growth rate.
How to Use This Calculator?
Enter the base dividend, current price, number of years, and dividend growth rate. Optionally, preload stock data to automatically fetch the dividend and price. The calculator will display the current yield and the projected future yield.
Dividend Income
| Investment Amount | |
| Dividend Yield |
What is the Dividend Income Calculator?
The Dividend Income Calculator helps you estimate the yearly, quarterly, monthly, and daily income of your investments.
How to Use This Calculator?
Enter the dividend yield and the invested amount. Optionally, preload stock data to automatically fetch the dividend yield.
Required Investment
| Dividend Yield | |
| Desired Yearly Payout | |
| Desired Quarterly Payout | |
| Desired Monthly Payout |
What is the Required Investment Calculator?
The Required Investment Calculator helps you determine the amount of money you need to invest in a stock to achieve a desired dividend.
How to Use This Calculator?
Enter the dividend yield and your desired dividend income. Optionally, preload stock data to automatically fetch the dividend yield.