(MSFT) Microsoft - NASDAQ
Sector: Technology | Industry: Software - Infrastructure | Exchange: NASDAQ (USA) | Market Cap: 2.899.615m USD | Total Return: -15.9% in 12m
Avg Turnover: 14.7B
EPS Trend: 98.1%
Qual. Beats: 0
Rev. Trend: 99.9%
Qual. Beats: 1
Warnings
Below Avwap Earnings
Tailwinds
No distinct edge detected
Microsoft Corporation is a global technology provider operating through three primary segments: Productivity and Business Processes, Intelligent Cloud, and More Personal Computing. The company’s portfolio includes the Microsoft 365 suite, LinkedIn, the Azure cloud platform, and the Xbox gaming ecosystem. Microsoft utilizes a diversified distribution model, reaching end-users through original equipment manufacturers (OEMs), direct retail, and a global network of resellers.
The company operates within the Systems Software sub-industry, where business models have increasingly shifted from one-time licensing fees to recurring Software-as-a-Service (SaaS) revenue. This transition provides high visibility into cash flows and reduces the cyclicality traditionally associated with hardware release cycles. Additionally, Microsoft’s Intelligent Cloud segment leverages the growing enterprise demand for integrated Artificial Intelligence (AI) and hybrid cloud infrastructure.
Investors can further evaluate these operational segments by reviewing the detailed financial metrics available on ValueRay.
- Azure cloud revenue growth and AI infrastructure demand lead valuation expansion
- Enterprise adoption of Copilot and Office 365 AI tools drives margin growth
- Capital expenditure for data center expansion impacts short-term free cash flow
- Gaming segment revenue volatility follows Activision Blizzard integration and Xbox hardware cycles
- Regulatory scrutiny of cloud market dominance and AI partnerships poses antitrust risks
| Net Income: 125b TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.11 > 0.02 and ΔFCF/TA -1.83 > 1.0 |
| NWC/Revenue: 12.15% < 20% (prev 15.72%; Δ -3.57% < -1%) |
| CFO/TA 0.25 > 3% & CFO 170b > Net Income 125b |
| Net Debt (-4.60b) to EBITDA (201b): -0.02 < 3 |
| Current Ratio: 1.28 > 1.5 & < 3 |
| Outstanding Shares: last quarter (7.45b) vs 12m ago -0.21% < -2% |
| Gross Margin: 68.31% > 18% (prev 69.07%; Δ -0.77% > 0.5%) |
| Asset Turnover: 50.65% > 50% (prev 47.99%; Δ 2.65% > 0%) |
| Interest Coverage Ratio: 55.65 > 6 (EBIT TTM 157b / Interest Expense TTM 2.83b) |
| A: 0.06 (Total Current Assets 175b - Total Current Liabilities 137b) / Total Assets 694b |
| B: 0.44 (Retained Earnings 303b / Total Assets 694b) |
| C: 0.25 (EBIT TTM 157b / Avg Total Assets 628b) |
| D: 1.48 (Book Value of Equity 414b / Total Liabilities 280b) |
| Altman-Z'' = 5.02 = AAA |
| DSRI: 0.99 (Receivables 60.0b/51.7b, Revenue 318b/270b) |
| GMI: 1.01 (GM 69.07% / 68.31%) |
| AQI: 0.87 (AQ_t 0.30 / AQ_t-1 0.35) |
| SGI: 1.18 (Revenue 318b / 270b) |
| TATA: -0.06 (NI 125b - CFO 170b) / TA 694b) |
| Beneish M = -2.99 (Cap -4..+1) = A |
As of June 17, 2026, the stock is trading at USD 393.83 with a total of 31,182,390 shares traded.
Over the past week, the price has changed by -2.91%,
over one month by -5.05%,
over three months by +0.17% and
over the past year by -15.90%.
Microsoft has received a consensus analysts rating of 4.59. Therefore, it is recommended to buy MSFT.
- StrongBuy: 41
- Buy: 15
- Hold: 5
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 561.4 | 42.5% |
P/E Trailing = 23.2622
P/E Forward = 20.4499
P/S = 9.1105
P/B = 7.1235
P/EG = 1.225
Revenue TTM = 318b USD
EBIT TTM = 157b USD
EBITDA TTM = 201b USD
Long Term Debt = 31.4b USD (from longTermDebt, last quarter)
Short Term Debt = 8.84b USD (from shortTermDebt, last quarter)
Debt = 73.7b USD (from shortLongTermDebtTotal, last quarter) + Leases 16.7b
Net Debt = -4.60b USD (calculated: Debt 73.7b - CCE 78.3b)
Enterprise Value = 2895b USD (2900b + Debt 73.7b - CCE 78.3b)
Interest Coverage Ratio = 55.65 (Ebit TTM 157b / Interest Expense TTM 2.83b)
EV/FCF = 39.70x (Enterprise Value 2895b / FCF TTM 72.9b)
FCF Yield = 2.52% (FCF TTM 72.9b / Enterprise Value 2895b)
FCF Margin = 22.91% (FCF TTM 72.9b / Revenue TTM 318b)
Net Margin = 39.34% (Net Income TTM 125b / Revenue TTM 318b)
Gross Margin = 68.31% ((Revenue TTM 318b - Cost of Revenue TTM 101b) / Revenue TTM)
Gross Margin QoQ = 67.63% (prev 68.04%)
Tobins Q-Ratio = 4.17 (Enterprise Value 2895b / Total Assets 694b)
Interest Expense / Debt = 3.84% (Interest Expense 2.83b / Debt 73.7b)
Taxrate = 18.96% (29.3b / 155b)
NOPAT = 128b (EBIT 157b * (1 - 18.96%))
Current Ratio = 1.28 (Total Current Assets 175b / Total Current Liabilities 137b)
Debt / Equity = 0.18 (Debt 73.7b / totalStockholderEquity, last quarter 414b)
Debt / EBITDA = -0.02 (Net Debt -4.60b / EBITDA 201b)
Debt / FCF = -0.06 (Net Debt -4.60b / FCF TTM 72.9b)
Total Stockholder Equity = 378b (last 4 quarters mean from totalStockholderEquity)
RoA = 19.93% (Net Income 125b / Total Assets 694b)
RoE = 33.13% (Net Income TTM 125b / Total Stockholder Equity 378b)
RoCE = 38.43% (EBIT 157b / Capital Employed (Equity 378b + L.T.Debt 31.4b))
RoIC = 23.16% (NOPAT 128b / Invested Capital 550b)
WACC = 9.32% (E(2900b)/V(2973b) * Re(9.48%) + D(73.7b)/V(2973b) * Rd(3.84%) * (1-Tc(0.19)))
Discount Rate = 9.48% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -73.61 | Cagr: -0.14%
[DCF] Terminal Value 72.82% ; FCFF base≈71.5b ; Y1≈74.8b ; Y5≈86.2b
[DCF] Fair Price = 153.9 (EV 1138b - Net Debt -4.60b = Equity 1143b / Shares 7.43b; r=9.32% [WACC]; 5y FCF grow 5.12% → 2.50% )
EPS Correlation: 98.14 | EPS CAGR: 19.60% | SUE: 0.45 | # QB: 0
Revenue Correlation: 99.93 | Revenue CAGR: 15.78% | SUE: 1.81 | # QB: 1
EPS next Quarter (2026-09-30): EPS=4.62 | Chg30d=-0.00% | Revisions=+18% | Analysts=28
EPS current Year (2026-06-30): EPS=16.82 | Chg30d=+0.02% | Revisions=N/A | GrowthEPS=+23.3% | GrowthRev=+17.2%
EPS next Year (2027-06-30): EPS=19.35 | Chg30d=+0.04% | Revisions=+20% | GrowthEPS=+15.0% | GrowthRev=+16.6%
[Analyst] Revisions Ratio: +20%