Overview Dividends

(MSFT) Microsoft - Ratings and Ratios

Exchange: NASDAQ • Country: United States • Currency: USD • Type: Common Stock • ISIN: US5949181045

Software, Cloud, Office, Azure, Gaming

MSFT EPS (Earnings per Share)

EPS Growth (3Y CAGR): 18.73%
EPS Trend (3Y Correlation): 96.5%

MSFT Revenue

Revenue Growth (3Y CAGR): 15.11%
Revenue Trend (3Y Correlation): 98.9%

Description: MSFT Microsoft September 24, 2025

Microsoft Corporation (NASDAQ: MSFT) operates three core segments: Productivity and Business Processes (Microsoft 365, Teams, LinkedIn, Dynamics 365), Intelligent Cloud (Azure, GitHub, server software, enterprise services) and Personal Computing (Windows OEM licensing, Surface devices, Xbox hardware and services, Bing/Edge advertising). The company distributes its portfolio through OEMs, distributors, online and retail channels, and is headquartered in Redmond, Washington.

In fiscal 2024, Microsoft reported total revenue of $211 billion, with Azure and other cloud services growing 27 % year-over-year, contributing roughly 30 % of overall revenue. The Intelligent Cloud segment now represents the largest revenue share, driven by a ~33 % share of the global cloud infrastructure market, according to third-party estimates.

Key macro drivers include sustained enterprise spending on cloud infrastructure, accelerated adoption of AI-augmented productivity tools (e.g., Copilot), and the broader digital-transformation wave that benefits both the cloud and personal-computing ecosystems. A notable sector trend is the increasing integration of AI services into existing SaaS offerings, which is expected to lift average revenue per user (ARPU) across Microsoft 365 and Azure.

For a deeper, data-focused analysis of how these dynamics translate into valuation metrics, consider exploring the detailed breakdown on ValueRay.

MSFT Stock Overview

Market Cap in USD	3,907,647m
Sub-Industry	Systems Software
IPO / Inception	1986-03-13

MSFT Stock Ratings

Growth Rating	86.6%
Fundamental	90.9%
Dividend Rating	61.3%
Return 12m vs S&P 500	3.83%
Analyst Rating	4.59 of 5

MSFT Dividends

Dividend Yield 12m	0.85%
Yield on Cost 5y	2.02%
Annual Growth 5y	10.18%
Payout Consistency	94.5%
Payout Ratio	24.2%

MSFT Growth Ratios

Growth Correlation 3m	36.8%
Growth Correlation 12m	76.8%
Growth Correlation 5y	87.3%
CAGR 5y	28.29%
CAGR/Max DD 3y (Calmar Ratio)	1.19
CAGR/Mean DD 3y (Pain Ratio)	5.24
Sharpe Ratio 12m	0.98
Alpha	3.20
Beta	1.023
Volatility	19.61%
Current Volume	27406.5k
Average Volume 20d	18962.7k
Stop Loss	482.1 (-3%)
Signal	0.40

Piotroski VR‑10 (Strict, 0-10) 6.0

Net Income (104.91b TTM) > 0 and > 6% of Revenue (6% = 17.63b TTM)

FCFTA 0.12 (>2.0%) and ΔFCFTA -1.63pp (YES ≥ +1.0pp, WARN ≥ +0.5pp)

NWC/Revenue 18.40% (prev 13.66%; Δ 4.74pp) (YES ≤20% & Δ≤-1pp; WARN ≤25% & Δ≤0 oder ≤40% & Δ≤-3pp)

CFO/TA 0.23 (>3.0%) and CFO 147.04b > Net Income 104.91b (YES >=105%, WARN >=100%)

Net Debt (31.71b) to EBITDA (169.99b) ratio: 0.19 <= 3.0 (WARN <= 3.5)

Current Ratio 1.40 (target 1.5–3.0; WARN 1.2–<1.5 or >3.0–5.0; CFO/TA gate active)

Outstanding Shares last Quarter (7.47b) change vs 12m ago -0.05% (target <= -2.0% for YES)

Gross Margin 68.76% (prev 69.35%; Δ -0.59pp) >=18% & Δ>=+0.5pp (WARN >=15% & Δ>=0)

Asset Turnover 50.69% (prev 48.60%; Δ 2.08pp) >=50% & Δ>=+2pp (WARN >=35% & Δ>=0)

Interest Coverage Ratio 52.04 (EBITDA TTM 169.99b / Interest Expense TTM 2.50b) >= 6 (WARN >= 3)

Altman Z'' 4.77

(A) 0.08 = (Total Current Assets 189.07b - Total Current Liabilities 135.00b) / Total Assets 636.35b

(B) 0.40 = Retained Earnings (Balance) 254.87b / Total Assets 636.35b

(D) 1.33 = Book Value of Equity 363.08b / Total Liabilities 273.27b

Total Rating: 4.77 = (6.56 * A) + (3.26 * B) + (6.72 * C) + (1.05 * D)

ValueRay F-Score (Strict, 0-100) 90.85

1. Piotroski 6.0pt = 1.0

2. FCF Yield 2.02% = 1.01

3. FCF Margin 26.55% = 6.64

4. Debt/Equity 0.17 = 2.49

5. Debt/Ebitda 0.19 = 2.47

6. ROIC - WACC (= 19.09)% = 12.50

7. RoE 31.53% = 2.50

8. Rev. Trend 98.94% = 7.42

9. EPS Trend 96.52% = 4.83

What is the price of MSFT shares?

As of November 08, 2025, the stock is trading at USD 497.10 with a total of 27,406,496 shares traded.
Over the past week, the price has changed by -5.45%, over one month by -5.95%, over three months by -5.15% and over the past year by +19.19%.

Is Microsoft a good stock to buy?

Yes, based on ValueRay´s Fundamental Analyses, Microsoft (NASDAQ:MSFT) is currently (November 2025) a good stock to buy. It has a ValueRay Fundamental Rating of 90.85 and therefor a positive outlook according to the companies health.
Based on momentum, paid dividends and discounted-cash-flow analyses, the fair value of MSFT is around 545.31 USD . This means that MSFT is currently overvalued and has a potential downside of 9.7%.

Is MSFT a buy, sell or hold?

Microsoft has received a consensus analysts rating of 4.59. Therefore, it is recommended to buy MSFT.

Strong Buy: 41
Buy: 15
Hold: 5
Sell: 0
Strong Sell: 0

What are the forecasts/targets for the MSFT price?

Issuer	Target	Up/Down from current
Wallstreet Target Price	623	25.3%
Analysts Target Price	623	25.3%
ValueRay Target Price	614.2	23.6%

MSFT Fundamental Data Overview November 01, 2025

Market Cap USD = 3907.65b (3907.65b USD * 1.0 USD.USD)
P/E Trailing = 37.4473
P/E Forward = 33.3333
P/S = 13.8705
P/B = 11.161
P/EG = 2.2593
Beta = 1.023
Revenue TTM = 293.81b USD
EBIT TTM = 130.16b USD
EBITDA TTM = 169.99b USD
Long Term Debt = 40.15b USD (from longTermDebt, last fiscal year)
Short Term Debt = 7.83b USD (from shortTermDebt, last quarter)
Debt = 60.56b USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 31.71b USD (from netDebt column, last quarter)
Enterprise Value = 3866.19b USD (3907.65b + Debt 60.56b - CCE 102.01b)
Interest Coverage Ratio = 52.04 (Ebit TTM 130.16b / Interest Expense TTM 2.50b)
FCF Yield = 2.02% (FCF TTM 78.02b / Enterprise Value 3866.19b)
FCF Margin = 26.55% (FCF TTM 78.02b / Revenue TTM 293.81b)
Net Margin = 35.71% (Net Income TTM 104.91b / Revenue TTM 293.81b)
Gross Margin = 68.76% ((Revenue TTM 293.81b - Cost of Revenue TTM 91.78b) / Revenue TTM)
Gross Margin QoQ = 69.05% (prev 68.58%)
Tobins Q-Ratio = 6.08 (Enterprise Value 3866.19b / Total Assets 636.35b)
Interest Expense / Debt = 1.15% (Interest Expense 698.0m / Debt 60.56b)
Taxrate = 19.11% (6.55b / 34.30b)
NOPAT = 105.29b (EBIT 130.16b * (1 - 19.11%))
Current Ratio = 1.40 (Total Current Assets 189.07b / Total Current Liabilities 135.00b)
Debt / Equity = 0.17 (Debt 60.56b / totalStockholderEquity, last quarter 363.08b)
Debt / EBITDA = 0.19 (Net Debt 31.71b / EBITDA 169.99b)
Debt / FCF = 0.41 (Net Debt 31.71b / FCF TTM 78.02b)
Total Stockholder Equity = 332.79b (last 4 quarters mean from totalStockholderEquity)
RoA = 16.49% (Net Income 104.91b / Total Assets 636.35b)
RoE = 31.53% (Net Income TTM 104.91b / Total Stockholder Equity 332.79b)
RoCE = 34.90% (EBIT 130.16b / Capital Employed (Equity 332.79b + L.T.Debt 40.15b))
RoIC = 28.74% (NOPAT 105.29b / Invested Capital 366.36b)
WACC = 9.64% (E(3907.65b)/V(3968.20b) * Re(9.78%) + D(60.56b)/V(3968.20b) * Rd(1.15%) * (1-Tc(0.19)))
Discount Rate = 9.78% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: -81.65 | Cagr: -0.01%
[DCF Debug] Terminal Value 72.54% ; FCFE base≈75.88b ; Y1≈77.41b ; Y5≈85.49b
Fair Price DCF = 151.1 (DCF Value 1122.80b / Shares Outstanding 7.43b; 5y FCF grow 1.83% → 3.0% )
EPS Correlation: 96.52 | EPS CAGR: 18.73% | SUE: 0.60 | # QB: 0
Revenue Correlation: 98.94 | Revenue CAGR: 15.11% | SUE: 1.11 | # QB: 1

Additional Sources for MSFT Stock

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Fund Manager Positions: Dataroma | Stockcircle