(MSFT) Microsoft - Ratings and Ratios
Software, Devices, Cloud, Services, Gaming, Office, Tools, Cloud Infrastructure
MSFT EPS (Earnings per Share)
MSFT Revenue
Description: MSFT Microsoft
Microsoft Corporation is a leading technology company with a diverse portfolio of software, services, devices, and solutions. The companys three main segments - Productivity and Business Processes, Intelligent Cloud, and More Personal Computing - cater to various customer needs, including productivity, cloud computing, and personal computing.
The Productivity and Business Processes segment is a significant contributor, with offerings such as Microsoft Office, Microsoft Teams, and Dynamics 365, which provide businesses with a range of tools for productivity, collaboration, and customer relationship management. Additionally, the segments LinkedIn platform offers professionals a network for career development and networking.
The Intelligent Cloud segment is another key area of focus, with Azure being a major player in the cloud computing market. The segment also includes enterprise services, such as enterprise support and industry solutions, which provide businesses with comprehensive support and customized solutions. Key performance indicators (KPIs) for this segment include cloud revenue growth, Azure market share, and customer adoption rates.
The More Personal Computing segment, while facing intense competition, remains a significant contributor, with Windows and Xbox being two of the companys most recognizable brands. The segments focus on gaming, search, and news advertising also provides opportunities for growth. KPIs for this segment include Windows market share, Xbox console sales, and gaming subscription growth.
From a financial perspective, Microsofts strong market capitalization, revenue growth, and return on equity (RoE) of 32.74% indicate a well-managed and profitable business. The companys forward P/E ratio of 33.44 suggests that investors expect continued growth and profitability. Other key metrics to watch include revenue growth, operating margins, and cash flow generation.
Overall, Microsofts diversified portfolio, strong brand recognition, and significant investments in cloud computing and artificial intelligence position the company for continued success in the technology industry. As a Trading Analyst, it is essential to monitor the companys financial performance, industry trends, and competitive landscape to identify potential trading opportunities.
MSFT Stock Overview
| Market Cap in USD | 3,748,102m |
| Sub-Industry | Systems Software |
| IPO / Inception | 1986-03-13 |
MSFT Stock Ratings
| Growth Rating | 72.9% |
| Fundamental | 88.9% |
| Dividend Rating | 59.0% |
| Return 12m vs S&P 500 | 6.26% |
| Analyst Rating | 4.59 of 5 |
MSFT Dividends
| Dividend Yield 12m | 0.71% |
| Yield on Cost 5y | 1.54% |
| Annual Growth 5y | 8.06% |
| Payout Consistency | 99.1% |
| Payout Ratio | 24.3% |
MSFT Growth Ratios
| Growth Correlation 3m | 83.9% |
| Growth Correlation 12m | 51.1% |
| Growth Correlation 5y | 87.3% |
| CAGR 5y | 18.80% |
| CAGR/Max DD 5y | 0.51 |
| Sharpe Ratio 12m | 0.99 |
| Alpha | 7.87 |
| Beta | 0.938 |
| Volatility | 19.21% |
| Current Volume | 17845.8k |
| Average Volume 20d | 21355.7k |
| Stop Loss | 494.3 (-3%) |
| Signal | 0.66 |
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) 88.89
| 1. Piotroski 5.50pt = 0.50 |
| 2. FCF Yield 1.90% = 0.95 |
| 3. FCF Margin 25.42% = 6.35 |
| 4. Debt/Equity 0.13 = 2.49 |
| 5. Debt/Ebitda 0.27 = 2.44 |
| 6. ROIC - WACC 19.62% = 12.50 |
| 7. RoE 32.44% = 2.50 |
| 8. Rev. Trend 98.93% = 4.95 |
| 9. Rev. CAGR 16.59% = 2.07 |
| 10. EPS Trend 95.55% = 2.39 |
| 11. EPS CAGR 17.42% = 1.74 |
What is the price of MSFT shares?
Over the past week, the price has changed by +1.07%, over one month by -0.39%, over three months by +11.61% and over the past year by +25.05%.
Is Microsoft a good stock to buy?
Based on momentum, paid dividends and discounted-cash-flow analyses, the fair value of MSFT is around 524.04 USD . This means that MSFT is currently overvalued and has a potential downside of 2.83%.
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 | 613.3 | 20.3% |
| Analysts Target Price | 509.9 | 0.1% |
| ValueRay Target Price | 588.9 | 15.6% |
Last update: 2025-08-23 05:04
MSFT Fundamental Data Overview
CCE Cash And Equivalents = 30.24b USD (last quarter)
P/E Trailing = 36.9407
P/E Forward = 32.6797
P/S = 13.3042
P/B = 10.9442
P/EG = 2.2689
Beta = 1.055
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 = 43.15b USD (Calculated: Short Term 3.00b + Long Term 40.15b)
Net Debt = 30.35b USD (from netDebt column, last quarter)
Enterprise Value = 3761.01b USD (3748.10b + Debt 43.15b - CCE 30.24b)
Interest Coverage Ratio = 52.84 (Ebit TTM 126.01b / Interest Expense TTM 2.38b)
FCF Yield = 1.90% (FCF TTM 71.61b / Enterprise Value 3761.01b)
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)
Tobins Q-Ratio = 10.95 (Enterprise Value 3761.01b / Book Value Of Equity 343.48b)
Interest Expense / Debt = 1.43% (Interest Expense 615.0m / Debt 43.15b)
Taxrate = 17.63% (from yearly Income Tax Expense: 21.80b / 123.63b)
NOPAT = 103.80b (EBIT 126.01b * (1 - 17.63%))
Current Ratio = 1.35 (Total Current Assets 191.13b / Total Current Liabilities 141.22b)
Debt / Equity = 0.13 (Debt 43.15b / last Quarter total Stockholder Equity 343.48b)
Debt / EBITDA = 0.27 (Net Debt 30.35b / EBITDA 160.16b)
Debt / FCF = 0.60 (Debt 43.15b / FCF TTM 71.61b)
Total Stockholder Equity = 313.95b (last 4 quarters mean)
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 / (Equity 313.95b + L.T.Debt 40.15b))
RoIC = 29.00% (NOPAT 103.80b / Invested Capital 357.98b)
WACC = 9.38% (E(3748.10b)/V(3791.25b) * Re(9.47%)) + (D(43.15b)/V(3791.25b) * Rd(1.43%) * (1-Tc(0.18)))
Shares Correlation 5-Years: -97.50 | Cagr: -0.30%
Discount Rate = 9.47% (= CAPM, Blume Beta Adj.)
[DCF Debug] Terminal Value 73.58% ; FCFE base≈72.59b ; Y1≈74.07b ; Y5≈81.79b
Fair Price DCF = 151.4 (DCF Value 1125.63b / Shares Outstanding 7.43b; 5y FCF grow 1.83% → 3.0% )
Revenue Correlation: 98.93 | Revenue CAGR: 16.59%
Rev Growth-of-Growth: 0.09
EPS Correlation: 95.55 | EPS CAGR: 17.42%
EPS Growth-of-Growth: -4.98
Additional Sources for MSFT Stock
Tweets: X | Stocktwits
Fund Manager Positions: Dataroma | Stockcircle