Microsoft Enterprise Value vs Free Cash Flow Analysis

MSFT Stock

USD 404.27 7.57 1.84%

Microsoft financial indicator trend analysis is infinitely more than just investigating Microsoft recent accounting drivers to predict future trends. We encourage investors to analyze account correlations over time for multiple indicators to determine whether Microsoft is a good investment. Please check the relationship between Microsoft Enterprise Value and its Free Cash Flow accounts. 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 census.

For more information on how to buy Microsoft Stock please use our How to Invest in Microsoft guide.

Enterprise Value vs Free Cash Flow

Enterprise Value vs Free Cash Flow Correlation Analysis

The overlapping area represents the amount of trend that can be explained by analyzing historical patterns of Microsoft Enterprise Value account and Free Cash Flow. At this time, the significance of the direction appears to have fragmental relationship.

The correlation between Microsoft's Enterprise Value and Free Cash Flow is 0.48. Overlapping area represents the amount of variation of Enterprise Value that can explain the historical movement of Free Cash Flow in the same time period over historical financial statements of Microsoft, assuming nothing else is changed. The correlation between historical values of Microsoft's Enterprise Value and Free Cash Flow is a relative statistical measure of the degree to which these accounts tend to move together. The correlation coefficient measures the extent to which Enterprise Value of Microsoft are associated (or correlated) with its Free Cash Flow. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when Free Cash Flow has no effect on the direction of Enterprise Value i.e., Microsoft's Enterprise Value and Free Cash Flow go up and down completely randomly.

Correlation Coefficient

0.48

Relationship Direction	Positive
Relationship Strength	Weak

View All Relationships

Enterprise Value

Enterprise Value (or EV) is usually referred to as Microsoft theoretical takeover price. In the event of an acquisition, an acquirer would have to take on Microsoft debt, but would also pocket its cash. Enterprise Value is more accurate representation of Microsoft value than its market capitalization because it takes into account all of Microsoft existing debt. A measure of a company's total value, often used as a more comprehensive alternative to equity market capitalization that includes the market capitalization, plus total debt, minority interest and preferred shares, minus total cash and cash equivalents.

Free Cash Flow

The amount of cash a company generates after accounting for cash outflows to support operations and maintain its capital assets.

Most indicators from Microsoft's fundamental ratios are interrelated and interconnected. However, analyzing fundamental ratios indicators one by one will only give a small insight into Microsoft current financial condition. On the other hand, looking into the entire matrix of fundamental ratios indicators, and analyzing their relationships over time can provide a more complete picture of the company financial strength now and in the future. 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 census.

For more information on how to buy Microsoft Stock please use our How to Invest in Microsoft guide.At this time, Microsoft's Sales General And Administrative To Revenue is comparatively stable compared to the past year. Enterprise Value is likely to gain to about 2 T in 2024, whereas Selling General Administrative is likely to drop slightly above 4.7 B in 2024.

	2021	2022	2023	2024 (projected)
Gross Profit	135.6B	146.1B	168.0B	176.4B
Total Revenue	198.3B	211.9B	243.7B	255.9B

Gross Profit Total Revenue

Microsoft fundamental ratios Correlations

	Total Assets	Short Long Term Debt Total	Other Current Liab	Total Current Liabilities	Total Stockholder Equity	Property Plant And Equipment Net	Net Debt	Retained Earnings	Cash	Non Current Assets Total	Non Currrent Assets Other	Cash And Short Term Investments	Net Receivables	Common Stock Shares Outstanding	Non Current Liabilities Total	Inventory	Other Current Assets	Other Stockholder Equity	Total Liab	Property Plant And Equipment Gross	Total Current Assets	Cash And Equivalents	Property Plant Equipment	Short Term Debt	Intangible Assets	Accounts Payable
Total Assets		0.74	0.98	0.99	0.96	0.94	0.36	0.9	0.9	0.97	0.94	0.76	0.99	-0.66	0.87	0.71	0.96	-0.66	0.96	0.96	0.93	0.9	0.94	0.21	0.89	0.97
Short Long Term Debt Total	0.74		0.74	0.72	0.52	0.53	0.88	0.41	0.48	0.6	0.57	0.92	0.62	-0.48	0.97	0.57	0.56	-0.32	0.89	0.63	0.87	0.48	0.53	0.52	0.8	0.62
Other Current Liab	0.98	0.74		0.97	0.93	0.95	0.37	0.9	0.88	0.97	0.96	0.7	0.97	-0.75	0.87	0.64	0.96	-0.7	0.96	0.98	0.89	0.88	0.95	0.18	0.86	0.97
Total Current Liabilities	0.99	0.72	0.97		0.96	0.94	0.35	0.89	0.89	0.97	0.93	0.75	0.98	-0.63	0.84	0.74	0.95	-0.64	0.95	0.95	0.93	0.89	0.94	0.28	0.88	0.97
Total Stockholder Equity	0.96	0.52	0.93	0.96		0.97	0.08	0.97	0.95	0.98	0.96	0.58	0.99	-0.63	0.69	0.67	0.98	-0.71	0.85	0.95	0.82	0.95	0.97	0.07	0.8	0.97
Property Plant And Equipment Net	0.94	0.53	0.95	0.94	0.97		0.1	0.99	0.95	0.99	0.99	0.51	0.97	-0.77	0.7	0.58	0.99	-0.78	0.84	0.99	0.77	0.95	1.0	0.05	0.78	0.97
Net Debt	0.36	0.88	0.37	0.35	0.08	0.1		-0.05	0.01	0.18	0.14	0.79	0.22	-0.17	0.76	0.39	0.12	0.05	0.6	0.22	0.6	0.01	0.1	0.57	0.53	0.23
Retained Earnings	0.9	0.41	0.9	0.89	0.97	0.99	-0.05		0.96	0.97	0.97	0.4	0.94	-0.74	0.6	0.54	0.98	-0.78	0.76	0.96	0.69	0.96	0.99	-0.05	0.72	0.94
Cash	0.9	0.48	0.88	0.89	0.95	0.95	0.01	0.96		0.94	0.95	0.49	0.92	-0.71	0.64	0.48	0.95	-0.77	0.78	0.93	0.74	1.0	0.95	0.03	0.72	0.88
Non Current Assets Total	0.97	0.6	0.97	0.97	0.98	0.99	0.18	0.97	0.94		0.99	0.58	0.99	-0.74	0.76	0.63	0.99	-0.76	0.89	0.99	0.83	0.94	0.99	0.07	0.84	0.98
Non Currrent Assets Other	0.94	0.57	0.96	0.93	0.96	0.99	0.14	0.97	0.95	0.99		0.52	0.96	-0.8	0.74	0.52	0.99	-0.79	0.86	0.99	0.77	0.95	0.99	0.02	0.78	0.95
Cash And Short Term Investments	0.76	0.92	0.7	0.75	0.58	0.51	0.79	0.4	0.49	0.58	0.52		0.66	-0.26	0.9	0.7	0.55	-0.18	0.87	0.58	0.94	0.49	0.51	0.55	0.77	0.63
Net Receivables	0.99	0.62	0.97	0.98	0.99	0.97	0.22	0.94	0.92	0.99	0.96	0.66		-0.65	0.79	0.69	0.98	-0.71	0.91	0.97	0.88	0.92	0.97	0.09	0.85	0.99
Common Stock Shares Outstanding	-0.66	-0.48	-0.75	-0.63	-0.63	-0.77	-0.17	-0.74	-0.71	-0.74	-0.8	-0.26	-0.65		-0.59	-0.17	-0.74	0.65	-0.63	-0.79	-0.46	-0.71	-0.77	-0.03	-0.52	-0.67
Non Current Liabilities Total	0.87	0.97	0.87	0.84	0.69	0.7	0.76	0.6	0.64	0.76	0.74	0.9	0.79	-0.59		0.63	0.72	-0.46	0.97	0.79	0.93	0.64	0.7	0.35	0.87	0.78
Inventory	0.71	0.57	0.64	0.74	0.67	0.58	0.39	0.54	0.48	0.63	0.52	0.7	0.69	-0.17	0.63		0.6	-0.31	0.71	0.57	0.77	0.48	0.58	0.32	0.79	0.72
Other Current Assets	0.96	0.56	0.96	0.95	0.98	0.99	0.12	0.98	0.95	0.99	0.99	0.55	0.98	-0.74	0.72	0.6		-0.75	0.86	0.99	0.8	0.95	0.99	0.07	0.78	0.97
Other Stockholder Equity	-0.66	-0.32	-0.7	-0.64	-0.71	-0.78	0.05	-0.78	-0.77	-0.76	-0.79	-0.18	-0.71	0.65	-0.46	-0.31	-0.75		-0.57	-0.76	-0.43	-0.77	-0.78	0.15	-0.56	-0.68
Total Liab	0.96	0.89	0.96	0.95	0.85	0.84	0.6	0.76	0.78	0.89	0.86	0.87	0.91	-0.63	0.97	0.71	0.86	-0.57		0.9	0.97	0.78	0.84	0.33	0.92	0.9
Property Plant And Equipment Gross	0.96	0.63	0.98	0.95	0.95	0.99	0.22	0.96	0.93	0.99	0.99	0.58	0.97	-0.79	0.79	0.57	0.99	-0.76	0.9		0.82	0.93	0.99	0.09	0.81	0.97
Total Current Assets	0.93	0.87	0.89	0.93	0.82	0.77	0.6	0.69	0.74	0.83	0.77	0.94	0.88	-0.46	0.93	0.77	0.8	-0.43	0.97	0.82		0.74	0.77	0.4	0.88	0.85
Cash And Equivalents	0.9	0.48	0.88	0.89	0.95	0.95	0.01	0.96	1.0	0.94	0.95	0.49	0.92	-0.71	0.64	0.48	0.95	-0.77	0.78	0.93	0.74		0.95	0.03	0.72	0.88
Property Plant Equipment	0.94	0.53	0.95	0.94	0.97	1.0	0.1	0.99	0.95	0.99	0.99	0.51	0.97	-0.77	0.7	0.58	0.99	-0.78	0.84	0.99	0.77	0.95		0.05	0.78	0.97
Short Term Debt	0.21	0.52	0.18	0.28	0.07	0.05	0.57	-0.05	0.03	0.07	0.02	0.55	0.09	-0.03	0.35	0.32	0.07	0.15	0.33	0.09	0.4	0.03	0.05		0.2	0.11
Intangible Assets	0.89	0.8	0.86	0.88	0.8	0.78	0.53	0.72	0.72	0.84	0.78	0.77	0.85	-0.52	0.87	0.79	0.78	-0.56	0.92	0.81	0.88	0.72	0.78	0.2		0.86
Accounts Payable	0.97	0.62	0.97	0.97	0.97	0.97	0.23	0.94	0.88	0.98	0.95	0.63	0.99	-0.67	0.78	0.72	0.97	-0.68	0.9	0.97	0.85	0.88	0.97	0.11	0.86

Click cells to compare fundamentals

Microsoft Account Relationship Matchups

Microsoft fundamental ratios Accounts

	2019	2020	2021	2022	2023	2024 (projected)
Total Assets	301.3B	333.8B	364.8B	412.0B	473.8B	497.5B
Short Long Term Debt Total	71.0B	67.8B	61.3B	60.0B	69.0B	72.4B
Other Current Liab	20.0B	23.9B	27.8B	29.9B	34.4B	36.1B
Total Current Liabilities	72.3B	88.7B	95.1B	104.1B	119.8B	125.8B
Total Stockholder Equity	118.3B	142.0B	166.5B	206.2B	237.2B	249.0B
Property Plant And Equipment Net	44.2B	70.8B	87.5B	110.0B	126.5B	132.8B
Net Debt	57.4B	53.6B	47.3B	25.3B	29.1B	30.5B
Retained Earnings	34.6B	57.1B	84.3B	118.8B	136.7B	143.5B
Cash	13.6B	14.2B	13.9B	34.7B	39.9B	41.9B
Non Current Assets Total	119.4B	149.4B	195.2B	227.7B	261.9B	275.0B
Non Currrent Assets Other	13.1B	15.1B	21.9B	30.6B	35.2B	37.0B
Cash And Short Term Investments	136.5B	130.3B	104.8B	111.3B	128.0B	134.3B
Net Receivables	32.0B	38.0B	44.3B	48.7B	56.0B	58.8B
Common Stock Shares Outstanding	7.7B	7.6B	7.5B	7.5B	6.7B	7.2B
Liabilities And Stockholders Equity	301.3B	333.8B	364.8B	412.0B	473.8B	497.5B
Non Current Liabilities Total	110.7B	103.1B	103.2B	101.6B	116.8B	122.7B
Inventory	1.9B	2.6B	3.7B	2.5B	2.9B	3.0B
Other Current Assets	11.5B	13.4B	16.9B	21.8B	25.1B	26.3B
Other Stockholder Equity	3.2B	1.8B	(4.7B)	(6.3B)	(5.7B)	(5.4B)
Total Liab	183.0B	191.8B	198.3B	205.8B	236.6B	248.4B
Property Plant And Equipment Gross	96.1B	122.2B	147.2B	178.2B	205.0B	215.2B
Total Current Assets	181.9B	184.4B	169.7B	184.3B	211.9B	222.5B
Accumulated Other Comprehensive Income	3.2B	1.8B	(4.7B)	(6.3B)	(7.3B)	(6.9B)
Cash And Equivalents	13.6B	14.2B	13.9B	34.7B	39.9B	41.9B
Property Plant Equipment	44.2B	70.8B	87.5B	110.0B	126.5B	132.8B
Short Term Debt	3.7B	8.1B	2.7B	5.2B	6.0B	3.7B
Intangible Assets	7.0B	7.8B	11.3B	9.4B	10.8B	11.3B
Accounts Payable	12.5B	15.2B	19B	18.1B	20.8B	21.8B
Common Stock	80.6B	83.1B	86.9B	93.7B	107.8B	61.9B
Common Stock Total Equity	78.5B	80.6B	83.1B	86.9B	100.0B	65.5B
Short Term Investments	123.0B	116.1B	90.8B	76.6B	88.0B	68.3B
Other Assets	13.1B	15.1B	21.9B	30.6B	35.2B	37.0B
Current Deferred Revenue	36B	41.5B	45.5B	50.9B	58.5B	61.5B
Other Liab	35.7B	34.5B	30.0B	44.7B	51.4B	54.0B
Good Will	43.4B	49.7B	67.5B	67.9B	78.1B	82.0B
Long Term Debt	59.6B	50.1B	47.0B	42.0B	48.3B	37.6B
Long Term Debt Total	67.2B	59.7B	58.5B	54.7B	62.9B	44.0B
Net Tangible Assets	67.9B	84.5B	87.7B	129.0B	148.3B	155.7B
Retained Earnings Total Equity	24.2B	34.6B	57.1B	84.3B	96.9B	101.8B
Deferred Long Term Liab	233M	204M	198M	230M	207M	196.7M

Microsoft Investors Sentiment

The influence of Microsoft's investor sentiment on the probability of its price appreciation or decline could be a good factor in your decision-making process regarding taking a position in Microsoft. The overall investor sentiment generally increases the direction of a stock movement in a one-year investment horizon. However, the impact of investor sentiment on the entire stock market does not have solid backing from leading economists and market statisticians.

Investor biases related to Microsoft's public news can be used to forecast risks associated with an investment in Microsoft. The trend in average sentiment can be used to explain how an investor holding Microsoft can time the market purely based on public headlines and social activities around Microsoft. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.

Microsoft's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Microsoft's and other traded tickers. The bigger the bubble, the more accurate is the estimated score. Higher bars for a given day show more participation in the average Microsoft's news discussions. The higher the estimated score, the more favorable is the investor's outlook on Microsoft.

Microsoft Implied Volatility

35.64

Microsoft's implied volatility exposes the market's sentiment of Microsoft stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Microsoft's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Microsoft stock will not fluctuate a lot when Microsoft's options are near their expiration.

Some investors attempt to determine whether the market's mood is bullish or bearish by monitoring changes in market sentiment. Unlike more traditional methods such as technical analysis, investor sentiment usually refers to the aggregate attitude towards Microsoft in the overall investment community. So, suppose investors can accurately measure the market's sentiment. In that case, they can use it for their benefit. For example, some tools to gauge market sentiment could be utilized using contrarian indexes, Microsoft's short interest history, or implied volatility extrapolated from Microsoft options trading.

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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:

How To Invest In Microsoft

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Is Microsoft Stock a good investment?

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What is Microsoft's Net Worth?

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Largest Systems Software Companies

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Largest Software - Infrastructure Companies

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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 census.

For more information on how to buy Microsoft Stock please use our How to Invest in Microsoft 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.

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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Is Microsoft's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Microsoft. If investors know Microsoft will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Microsoft listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.

Quarterly Earnings Growth

0.332

Dividend Share

2.86

Earnings Share

11.07

Revenue Per Share

30.612

Quarterly Revenue Growth

0.176

The market value of Microsoft is measured differently than its book value, which is the value of Microsoft that is recorded on the company's balance sheet. Investors also form their own opinion of Microsoft's value that differs from its market value or its book value, called intrinsic value, which is Microsoft's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Microsoft's market value can be influenced by many factors that don't directly affect Microsoft's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.

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.

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Microsoft Enterprise Value vs Free Cash Flow Analysis

Enterprise Value vs Free Cash Flow

Enterprise Value vs Free Cash Flow Correlation Analysis

Correlation Coefficient

Enterprise Value

Free Cash Flow

Microsoft fundamental ratios Correlations

Microsoft Account Relationship Matchups

High Positive Relationship

High Negative Relationship

Microsoft fundamental ratios Accounts

Microsoft Investors Sentiment

Microsoft Implied Volatility

Building efficient market-beating portfolios requires time, education, and a lot of computing power!

Complementary Tools for Microsoft Stock analysis

COMMON DESTINATIONS

MAIN CATEGORIES

COMPANY

Property Plant Equipment	+ 1.0	Property Plant And Equipment Net
Cash And Equivalents	+ 1.0	Cash
Total Current Liabilities	+ 0.99	Total Assets
Net Receivables	+ 0.99	Total Assets
Net Receivables	+ 0.99	Total Stockholder Equity
Retained Earnings	+ 0.99	Property Plant And Equipment Net

Common Stock Shares Outstanding	- 0.8	Non Currrent Assets Other
Property Plant And Equipment Gross	- 0.79	Common Stock Shares Outstanding
Other Stockholder Equity	- 0.79	Non Currrent Assets Other
Property Plant Equipment	- 0.78	Other Stockholder Equity
Other Stockholder Equity	- 0.78	Retained Earnings
Other Stockholder Equity	- 0.78	Property Plant And Equipment Net