Microsoft Corporation

MSFT

397.23 (-0.39%) 1.53

Information Technology

Software

Microsoft Corporation develops and supports software services devices and solutions worldwide. The Productivity and Business Processes segment offers Microsoft 365 commercial enterprise mobility + security windows commercial power BI exchange sharepoint Microsoft teams security and compliance and copilot; Microsoft 365 commercial products such as Windows commercial on-premises and office licensed services; Microsoft 365 consumer products and cloud services including Microsoft 365 consumer subscriptions office licensed on-premises and other consumer services; LinkedIn; dynamics products and cloud services such as dynamics 365 cloud-based applications and on-premises ERP and CRM applications. Its Intelligent Cloud segment provides Server products and cloud services comprising Azure and other cloud services GitHub Nuance Healthcare virtual desktop offerings and other cloud services; server products including SQL and windows server visual studio and system center related client access licenses and other on-premises offerings; enterprise and partner services such as enterprise support and nuance professional services industry solutions Microsoft partner network and learning experience. The Personal Computing segment provides windows and devices such as Windows OEM licensing and devices and surface and PC accessories; gaming services and solutions such as Xbox hardware content and services first- and third-party content Xbox game pass subscriptions and cloud gaming advertising and other cloud services; search and news advertising services that includes Bing and Copilot Microsoft News and Edge and third-party affiliates. It sells its products through OEMs distributors and resellers; and online and retail stores. The company was founded in 1975 and is headquartered in Redmond Washington.

Quality Checklist 8/8

5Y Shares Out Change < 0%

ROIC > 10%

Debt/Equity < 1

Current Ratio > 1

Quick Ratio > 1

Net Margin > 10%

Past Net Income CAGR > 0%

Est. EPS Growth > 5%

0.0%of Portfolio

My holdings

Day change:

Total change:

Cost basis:

Market cap: $2.95(T)

EV: $2.98(T)

Total Equity: $390.88(B)

Earnings date: Apr-23-2026

P/E: 24.75

Forward P/E: 23.74

P/FCF: 38.12

P/S: 9.66

P/B: 7.55

EPS: $16.1

EPS (fwd): $16.7

FCF/share: $10.4

Revenue/share: $41.1

Book value/share: $52.6

ROIC: 27.1%

ROA: 18.1%

ROE: 32.2%

Debt/Equity: 0.32

Current Ratio: 1.40

Gross margin: 68.6%

Operating margin: 46.3%

Net margin: 39.0%

Dividend/share: $3.5

Div. yield: 0.88%

All Valuation Overview Growth Financials & KPIs Competitors & Peer Comparison Ownership Tools

MSFT Valuation & Price Targets

Current Price

$397

Favorite Valuation Methods

PEvaluation

N/A

Analyst targets

N/A

DCF (2-stage)

N/A

More Valuation Methods

DCF (simple)

N/A

DCF (exit mult.)

N/A

DDM

N/A

EPS growth

N/A

Revenue growth

N/A

Peter Lynch FV

N/A

Graham No.

N/A

PEvaluation

81% undervalued

Low

$540

Mid

$719

High

$899

Current price

$397

Fair P/E

Margin of safety

EPS

Market Model

Economic moat: Very wide

EPS Estimates

	Low	Avg	High	#
FY+1	15.7	16.7	17.8	28
FY+2	16.6	18.9	20.3	34
FY+3	19.8	22.3	24.6	19
FY+4	25.5	27.4	29.7	5
FY+5	28.7	31.8	35.2	3

Analyst Price Targets

51% undervalued

Low

$392

Mid

$600

High

$730

Current price

$397

Analyst Recommendations

Strong Buy10

Buy44

Hold3

Sell0

Strong Sell0

2-stage DCF

First Stage Duration: 5 Years

Starting Free Cash Flow
First Stage Growth Rate
LowMidHigh

Terminal Growth Rate
LowMidHigh

Discount Rate

Discounted Cash Flow

Forecast years: 5 Years

Terminal Growth Rate
LowMidHigh

Discount Rate

Free cash flow estimates:

Y+1 est.

Y+2 est.

0.00%

Y+3 est.

0.00%

Y+4 est.

0.00%

Y+5 est.

0.00%

Discounted Cash Flow (exit mult.)

Forecast years: 5 Years

Exit FCF Multiple
LowMidHigh

Discount Rate

Free cash flow estimates:

Y+1 est.

Y+2 est.

0.00%

Y+3 est.

0.00%

Y+4 est.

0.00%

Y+5 est.

0.00%

Dividend Discount Model

Annual Dividend
First Stage Length (Years): 0 Years

First Stage Growth Rate
Final Growth Rate
Discount Rate

EPS Growth

Forecast years: 5 Years

Starting EPS
EPS Growth Rate
LowMidHigh

Final P/E
LowMidHigh

Discount Rate

Revenue Growth Valuation

Forecast Years: 10 Years

Base Revenue
Revenue Growth Rate
LowMidHigh

Final Net Margin
LowMidHigh

Final P/E Ratio
LowMidHigh

Discount Rate

Peter Lynch Fair Value

Earnings Per Share
Growth Rate

Graham Formula

Earnings Per Share
EPS Growth (7-10 years)
Government Bond Rate

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