Microsoft (Brazil) Performance

MSFT34 Stock  BRL 87.70  0.10  0.11%   
On a scale of 0 to 100, Microsoft holds a performance score of 14. The company secures a Beta (Market Risk) of 0.35, which conveys possible diversification benefits within a given portfolio. As returns on the market increase, Microsoft's returns are expected to increase less than the market. However, during the bear market, the loss of holding Microsoft is expected to be smaller as well. Please check Microsoft's downside deviation, total risk alpha, value at risk, as well as the relationship between the information ratio and treynor ratio , to make a quick decision on whether Microsoft's current price movements will revert.

Risk-Adjusted Performance

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Compared to the overall equity markets, risk-adjusted returns on investments in Microsoft are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Microsoft sustained solid returns over the last few months and may actually be approaching a breakup point. ...more
Begin Period Cash Flow14.2 B
Total Cashflows From Investing Activities-30.3 B
  

Microsoft Relative Risk vs. Return Landscape

If you would invest  7,581  in Microsoft on December 29, 2023 and sell it today you would earn a total of  1,189  from holding Microsoft or generate 15.68% return on investment over 90 days. Microsoft is generating 0.2519% of daily returns and assumes 1.3413% volatility on return distribution over the 90 days horizon. Simply put, 11% of stocks are less volatile than Microsoft, and 96% of all equity instruments are likely to generate higher returns than the company over the next 90 trading days.
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Assuming the 90 days trading horizon Microsoft is expected to generate 2.34 times more return on investment than the market. However, the company is 2.34 times more volatile than its market benchmark. It trades about 0.19 of its potential returns per unit of risk. The NYSE Composite is currently generating roughly 0.23 per unit of risk.

Microsoft Market Risk Analysis

Today, many novice investors tend to focus exclusively on investment returns with little concern for Microsoft's investment risk. Standard deviation is the most common way to measure market volatility of stocks, such as Microsoft, and traders can use it to determine the average amount a Microsoft's price has deviated from the expected return over a period of time. It is calculated by determining the expected price for the established period and then subtracting this figure from each price point. The differences are then squared, summed, and averaged to produce the variance.

Sharpe Ratio = 0.1878

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Estimated Market Risk

 1.34
  actual daily
11
89% of assets are more volatile

Expected Return

 0.25
  actual daily
4
96% of assets have higher returns

Risk-Adjusted Return

 0.19
  actual daily
14
86% of assets perform better
Based on monthly moving average Microsoft is performing at about 14% of its full potential. If added to a well diversified portfolio the total return can be enhanced and market risk can be reduced. You can increase risk-adjusted return of Microsoft by adding it to a well-diversified portfolio.

Microsoft Fundamentals Growth

Microsoft Stock prices reflect investors' perceptions of the future prospects and financial health of Microsoft, and Microsoft fundamentals are critical determinants of its market performance. Overall, investors pay close attention to revenue and earnings growth, profit margins, and debt levels. These fundamentals can have a significant impact on Microsoft Stock performance.

About Microsoft Performance

To evaluate Microsoft Stock as a possible investment, you need to clearly understand its upside potential, downside risk, and overall future performance outlook. You may be satisfied when Microsoft generates a 15% return over the last few months, but what if the market is generating 25% over the same period? In this case, it makes sense to compare Microsoft Stock's performance with different market indexes, such as the Dow or NASDAQ Composite. These indexes can act as benchmarks that will help you to understand Microsoft market performance in a much more refined way. The Macroaxis performance score is an integer between 0 and 100 that represents Microsoft's market performance from a risk-adjusted return perspective. Generally speaking, the higher the score, the better is overall performance as compared to other investors. The score is normalized against the average investing universe (the best we can interpret from the data available). Within this methodology, scores of individual equity instruments will always be inferior to the scores of portfolios of equities as portfolios typically diversify a lot of unsystematic risks away. The formula to derive the Macroaxis score bases on multiple unequally-weighted factors. For more information, refer to our portfolio performance evaluation section.
Please also refer to our technical analysis and fundamental analysis pages.
Microsoft Corporation develops, licenses, and supports software, services, devices, and solutions worldwide. The company was founded in 1975 and is headquartered in Redmond, Washington. MICROSOFT DRN operates under Software - Infrastructure classification in Brazil and is traded on Sao Paolo Stock Exchange.

Things to note about Microsoft performance evaluation

Checking the ongoing alerts about Microsoft for important developments is a great way to find new opportunities for your next move. Stock alerts and notifications screener for Microsoft help investors to be notified of important events, changes in technical or fundamental conditions, and significant headlines that can affect investment decisions.
Microsoft has high financial leverage indicating that it may have difficulties to generate enough cash to satisfy its financial obligations
Evaluating Microsoft's performance can involve analyzing a variety of financial metrics and factors. Some of the key considerations to evaluate Microsoft's stock performance include:
  • Analyzing Microsoft's financial statements, including its income statement, balance sheet, and cash flow statement, helps in understanding its overall financial health and growth potential.
  • Getting a closer look at valuation ratios like price-to-earnings (P/E) ratio, price-to-sales (P/S) ratio, and price-to-book (P/B) ratio help in understanding whether Microsoft's stock is overvalued or undervalued compared to its peers.
  • Examining Microsoft's industry or sector and how it is performing can give you an idea of its growth potential and how it is positioned relative to its competitors.
  • Evaluating Microsoft's management team can have a significant impact on its success or failure. Reviewing the track record and experience of Microsoft's management team can help you assess the Company's leadership.
  • Pay attention to analyst opinions and ratings of Microsoft's stock. These opinions can provide insight into Microsoft's potential for growth and whether the stock is currently undervalued or overvalued.
It's essential to remember that evaluating Microsoft's stock performance is not an exact science, and many factors can impact Microsoft's stock market price. Therefore, it's also important to diversify your portfolio and not rely solely on one company or stock for your investments.
When determining whether Microsoft is a good investment, qualitative aspects like company management, corporate governance, and ethical practices play a significant role. A comparison with peer companies also provides context and helps to understand if Microsoft Stock is undervalued or overvalued. This multi-faceted approach, blending both quantitative and qualitative analysis, forms a solid foundation for making an informed investment decision about Microsoft Stock. Highlighted below are key reports to facilitate an investment decision about Microsoft Stock:
Check out Correlation Analysis to better understand how to build diversified portfolios, which includes a position in Microsoft. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in nation.
For information on how to trade Microsoft Stock refer to our How to Trade Microsoft Stock guide.
Note that the Microsoft information on this page should be used as a complementary analysis to other Microsoft's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..

Complementary Tools for Microsoft Stock analysis

When running Microsoft's price analysis, check to measure Microsoft's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Microsoft is operating at the current time. Most of Microsoft's value examination focuses on studying past and present price action to predict the probability of Microsoft's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Microsoft's price. Additionally, you may evaluate how the addition of Microsoft to your portfolios can decrease your overall portfolio volatility.
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Please note, there is a significant difference between Microsoft's value and its price as these two are different measures arrived at by different means. Investors typically determine if Microsoft is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Microsoft's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.