(MSFT) Microsoft - Ratings and Ratios
Software, Cloud, Office, Azure, Gaming
MSFT EPS (Earnings per Share)
MSFT Revenue
Description: MSFT Microsoft
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 | 3,883,086m |
Sub-Industry | Systems Software |
IPO / Inception | 1986-03-13 |
MSFT Stock Ratings
Growth Rating | 85.9% |
Fundamental | 90.0% |
Dividend Rating | 61.3% |
Return 12m vs S&P 500 | 7.53% |
Analyst Rating | 4.59 of 5 |
MSFT Dividends
Dividend Yield 12m | 0.82% |
Yield on Cost 5y | 2.06% |
Annual Growth 5y | 10.18% |
Payout Consistency | 94.5% |
Payout Ratio | 24.3% |
MSFT Growth Ratios
Growth Correlation 3m | 1.3% |
Growth Correlation 12m | 71.1% |
Growth Correlation 5y | 87.3% |
CAGR 5y | 29.86% |
CAGR/Max DD 3y (Calmar Ratio) | 1.26 |
CAGR/Mean DD 3y (Pain Ratio) | 5.43 |
Sharpe Ratio 12m | 1.12 |
Alpha | 7.31 |
Beta | 1.023 |
Volatility | 19.04% |
Current Volume | 19205.9k |
Average Volume 20d | 17617.8k |
Stop Loss | 498.1 (-3%) |
Signal | 0.53 |
Piotroski VR‑10 (Strict, 0-10) 5.5
Net Income (101.83b TTM) > 0 and > 6% of Revenue (6% = 16.90b TTM) |
FCFTA 0.12 (>2.0%) and ΔFCFTA -2.89pp (YES ≥ +1.0pp, WARN ≥ +0.5pp) |
NWC/Revenue 17.72% (prev 14.05%; Δ 3.66pp) (YES ≤20% & Δ≤-1pp; WARN ≤25% & Δ≤0 oder ≤40% & Δ≤-3pp) |
CFO/TA 0.22 (>3.0%) and CFO 136.16b > Net Income 101.83b (YES >=105%, WARN >=100%) |
Net Debt (30.35b) to EBITDA (160.16b) ratio: 0.19 <= 3.0 (WARN <= 3.5) |
Current Ratio 1.35 (target 1.5–3.0; WARN 1.2–<1.5 or >3.0–5.0; CFO/TA gate active) |
Outstanding Shares last Quarter (7.46b) change vs 12m ago -0.09% (target <= -2.0% for YES) |
Gross Margin 68.82% (prev 69.76%; Δ -0.94pp) >=18% & Δ>=+0.5pp (WARN >=15% & Δ>=0) |
Asset Turnover 49.81% (prev 47.86%; Δ 1.95pp) >=50% & Δ>=+2pp (WARN >=35% & Δ>=0) |
Interest Coverage Ratio 52.84 (EBITDA TTM 160.16b / Interest Expense TTM 2.38b) >= 6 (WARN >= 3) |
Altman Z'' 4.59
(A) 0.08 = (Total Current Assets 191.13b - Total Current Liabilities 141.22b) / Total Assets 619.00b |
(B) 0.38 = Retained Earnings (Balance) 237.73b / Total Assets 619.00b |
(C) 0.22 = EBIT TTM 126.01b / Avg Total Assets 565.58b |
(D) 1.25 = Book Value of Equity 343.48b / Total Liabilities 275.52b |
Total Rating: 4.59 = (6.56 * A) + (3.26 * B) + (6.72 * C) + (1.05 * D) |
ValueRay F-Score (Strict, 0-100) 89.98
1. Piotroski 5.50pt = 0.50 |
2. FCF Yield 1.83% = 0.91 |
3. FCF Margin 25.42% = 6.35 |
4. Debt/Equity 0.18 = 2.48 |
5. Debt/Ebitda 0.19 = 2.47 |
6. ROIC - WACC (= 19.75)% = 12.50 |
7. RoE 32.44% = 2.50 |
8. Rev. Trend 98.93% = 7.42 |
9. EPS Trend 96.58% = 4.83 |
What is the price of MSFT shares?
Over the past week, the price has changed by +0.51%, over one month by +0.70%, over three months by +0.53% and over the past year by +24.17%.
Is Microsoft a good stock to buy?
Based on momentum, paid dividends and discounted-cash-flow analyses, the fair value of MSFT is around 570.54 USD . This means that MSFT is currently undervalued and has a potential upside of +11.09% (Margin of Safety).
Is MSFT a buy, sell or hold?
- 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 | 620.7 | 20.9% |
Analysts Target Price | 620.7 | 20.9% |
ValueRay Target Price | 642.7 | 25.1% |
Last update: 2025-10-11 05:02
MSFT Fundamental Data Overview
P/E Trailing = 38.3272
P/E Forward = 33.3333
P/S = 13.7833
P/B = 11.161
P/EG = 2.2593
Beta = 1.023
Revenue TTM = 281.72b USD
EBIT TTM = 126.01b USD
EBITDA TTM = 160.16b USD
Long Term Debt = 40.15b USD (from longTermDebt, last quarter)
Short Term Debt = 3.00b USD (from shortTermDebt, last quarter)
Debt = 60.59b USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 30.35b USD (from netDebt column, last quarter)
Enterprise Value = 3913.43b USD (3883.09b + Debt 60.59b - CCE 30.24b)
Interest Coverage Ratio = 52.84 (Ebit TTM 126.01b / Interest Expense TTM 2.38b)
FCF Yield = 1.83% (FCF TTM 71.61b / Enterprise Value 3913.43b)
FCF Margin = 25.42% (FCF TTM 71.61b / Revenue TTM 281.72b)
Net Margin = 36.15% (Net Income TTM 101.83b / Revenue TTM 281.72b)
Gross Margin = 68.82% ((Revenue TTM 281.72b - Cost of Revenue TTM 87.83b) / Revenue TTM)
Gross Margin QoQ = 68.58% (prev 68.72%)
Tobins Q-Ratio = 6.32 (Enterprise Value 3913.43b / Total Assets 619.00b)
Interest Expense / Debt = 1.02% (Interest Expense 615.0m / Debt 60.59b)
Taxrate = 16.50% (5.38b / 32.62b)
NOPAT = 105.21b (EBIT 126.01b * (1 - 16.50%))
Current Ratio = 1.35 (Total Current Assets 191.13b / Total Current Liabilities 141.22b)
Debt / Equity = 0.18 (Debt 60.59b / totalStockholderEquity, last quarter 343.48b)
Debt / EBITDA = 0.19 (Net Debt 30.35b / EBITDA 160.16b)
Debt / FCF = 0.42 (Net Debt 30.35b / FCF TTM 71.61b)
Total Stockholder Equity = 313.95b (last 4 quarters mean from totalStockholderEquity)
RoA = 16.45% (Net Income 101.83b / Total Assets 619.00b)
RoE = 32.44% (Net Income TTM 101.83b / Total Stockholder Equity 313.95b)
RoCE = 35.59% (EBIT 126.01b / Capital Employed (Equity 313.95b + L.T.Debt 40.15b))
RoIC = 29.39% (NOPAT 105.21b / Invested Capital 357.98b)
WACC = 9.64% (E(3883.09b)/V(3943.67b) * Re(9.78%) + D(60.59b)/V(3943.67b) * Rd(1.02%) * (1-Tc(0.17)))
Discount Rate = 9.78% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: -81.65 | Cagr: -0.02%
[DCF Debug] Terminal Value 72.54% ; FCFE base≈72.59b ; Y1≈74.07b ; Y5≈81.79b
Fair Price DCF = 144.5 (DCF Value 1074.26b / Shares Outstanding 7.43b; 5y FCF grow 1.83% → 3.0% )
EPS Correlation: 96.58 | EPS CAGR: 17.36% | SUE: 2.87 | # QB: 4
Revenue Correlation: 98.93 | Revenue CAGR: 16.59% | SUE: 0.37 | # QB: 0
Additional Sources for MSFT Stock
Tweets: X | Stocktwits
Fund Manager Positions: Dataroma | Stockcircle