Microsoft Fundamentals
MSFT Stock  USD 321.67 0.13 0.0404% 
Microsoft fundamentals help investors to digest information that contributes to Microsoft's financial success or failures. It also enables traders to predict the movement of Microsoft Stock. The fundamental analysis module provides a way to measure Microsoft's intrinsic value by examining its available economic and financial indicators, including the cash flow records, the balance sheet account changes, the income statement patterns, and various microeconomic indicators and financial ratios related to Microsoft stock.
Microsoft Direct Expenses is comparatively stable at the moment as compared to the past year. Microsoft reported Direct Expenses of 65.86 Billion in 2022. Interest Expense is likely to gain to about 2.1 B in 2023, whereas Consolidated Income is likely to drop slightly above 59.6 B in 2023. Microsoft  Select Account or Indicator 
Microsoft Profit Margin Analysis
Microsoft's Profit Margin measures overall efficiency of a company and shows its ability to withstand competition as well as defend against adverse conditions such as rising costs, falling prices, decline in sales or management distress. Profit margin tells investors how well the company executes on its overall pricing strategies as well as how effective the company in controlling its costs.
More About Profit Margin  All Equity Analysis
Microsoft Profit Margin 

Profit Margin  =  Net Income Revenue  X  100 
Current Microsoft Profit Margin  0.34 % 
Most of Microsoft's fundamental indicators, such as Profit Margin, are part of a valuation analysis module that helps investors searching for stocks that are currently trading at higher or lower prices than their real value. If the real value is higher than the market price, Microsoft is considered to be undervalued, and we provide a buy recommendation. Otherwise, we render a sell signal.
Microsoft Profit Margin Historical Pattern
Today, most investors in Microsoft Stock are looking for potential investment opportunities by analyzing not only static indicators but also various Microsoft's growth ratios. Consistent increases or drops in fundamental ratios usually indicate a possible pattern that can be successfully translated into profits. However, when comparing two companies, knowing each company's profit margin growth rates may not be enough to decide which company is a better investment. That's why investors frequently use a static breakdown of Microsoft profit margin as a starting point in their analysis.
Microsoft Profit Margin 
Timeline 
In a nutshell, Profit Margin indicator shows the amount of money the company makes from total sales or revenue. It can provide a good insight into companies in the same sector, as well as help to identify trends of a company from year to year.
Competition 
Microsoft Operating Margin
Operating Margin 

Based on the latest financial disclosure, Microsoft has a Profit Margin of 0.3415%. This is 126.27% lower than that of the Software sector and significantly higher than that of the Information Technology industry. The profit margin for all United States stocks is 126.89% lower than that of the firm.
Microsoft Fundamental Drivers Relationships
Comparative valuation techniques use various fundamental indicators to help in determining Microsoft's current stock value. Our valuation model uses many indicators to compare Microsoft value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Microsoft competition to find correlations between indicators driving Microsoft's intrinsic value. More Info.Microsoft is considered to be number one stock in net income category among related companies. It is considered to be number one stock in shares owned by institutions category among related companies . The ratio of Net Income to Shares Owned by Institutions for Microsoft is about 988,403,224 . Microsoft Net Income is comparatively stable at the moment as compared to the past year. Microsoft reported Net Income of 72.36 Billion in 2022. Comparative valuation analysis is a catchall model that can be used if you cannot value Microsoft by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Microsoft's Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the pricetoearnings (P/E), pricetobook (P/B), pricetosales (P/S), pricetocash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Microsoft's earnings, one of the primary drivers of an investment's value.Microsoft Operating Margin Peer Comparison
Stock peer comparison is one of the most widely used and accepted methods of equity analyses. It analyses Microsoft's direct or indirect competition against its Operating Margin to detect undervalued stocks with similar characteristics or determine the stocks which would be a good addition to a portfolio. Peer analysis of Microsoft could also be used in its relative valuation, which is a method of valuing Microsoft by comparing valuation metrics of similar companies.Microsoft is currently under evaluation in operating margin category among related companies.
Microsoft Current Valuation Drivers
We derive many important indicators used in calculating different scores of Microsoft from analyzing Microsoft's financial statements. These drivers represent accounts that assess Microsoft's ability to generate profits relative to its revenue, operating costs, and shareholders' equity. Below are some of Microsoft's important valuation drivers and their relationship over time.
2018  2019  2020  2021  2022  2023 (projected)  
Net Income Per Employee  272.5 K  270.92 K  338.51 K  329.13 K  327.43 K  267.7 K  
Revenue Per Employee  873.91 K  875 K  928.66 K  897.15 K  958.89 K  855.24 K  
Average Assets  266.58 B  287.13 B  311.95 B  346.31 B  379.1 B  342.44 B  
Earnings Before Interest Taxes and Depreciation Amortization EBITDA  58.06 B  68.42 B  85.13 B  100.24 B  105.14 B  88.55 B  
Earnings Before Interest Taxes and Depreciation Amortization USD  58.06 B  68.42 B  85.13 B  100.24 B  105.14 B  88.55 B  
Earnings before Tax  43.69 B  53.04 B  71.1 B  83.72 B  89.31 B  73.65 B  
Average Equity  93.82 B  112.24 B  132.53 B  160.36 B  189.4 B  161.19 B  
Enterprise Value  973.97 B  1,479.54 B  1,982.23 B  1,877.43 B  2,488.18 B  2,684.61 B  
Free Cash Flow  38.26 B  45.23 B  56.12 B  65.15 B  59.48 B  53.84 B  
Invested Capital  111.91 B  113.08 B  125.05 B  147.45 B  179.28 B  149.43 B  
Invested Capital Average  108.1 B  113.54 B  120.65 B  141.25 B  166.07 B  139.37 B  
Market Capitalization  1,026.51 B  1,543.31 B  2,040.3 B  1,920.84 B  2,532.08 B  2,731.98 B  
Tangible Asset Value  236.78 B  250.92 B  276.27 B  286.02 B  334.72 B  302.46 B  
Working Capital  106.13 B  109.61 B  95.75 B  74.6 B  80.11 B  93.24 B 
Microsoft ESG Sustainability
Some studies have found that companies with high sustainability scores are getting higher valuations than competitors with lower socialengagement activities. While most ESG disclosures are voluntary and do not directly affect the long term financial condition, Microsoft's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Microsoft's managers, analysts, and investors.Environment Score  Governance Score  Social Score 
Microsoft Fundamentals
Return On Equity  0.39  
Return On Asset  0.14  
Profit Margin  0.34 %  
Operating Margin  0.42 %  
Current Valuation  2314.13 B  
Shares Outstanding  7.43 B  
Shares Owned by Insiders  0.05 %  
Shares Owned by Institutions  73.21 %  
Number of Shares Shorted  41.15 M  
Price to Earning  26.64 X  
Price to Book  11.05 X  
Price to Sales  9.14 X  
Revenue  211.91 B  
Gross Profit  135.62 B  
EBITDA  102.38 B  
Net Income  72.36 B  
Cash and Equivalents  34.7 B  
Cash per Share  14.39 X  
Total Debt  59.97 B  
Debt to Equity  0.44 %  
Current Ratio  1.84 X  
Book Value Per Share  27.75 X  
Cash Flow from Operations  87.58 B  
Short Ratio  2.04 X  
Earnings Per Share  9.69 X  
Price to Earnings To Growth  2.27 X  
Target Price  391.14  
Number of Employees  221 K  
Beta  0.9  
Market Capitalization  2345.95 B  
Total Asset  411.98 B  
Retained Earnings  118.85 B  
Working Capital  80.11 B  
Current Asset  139.66 B  
Current Liabilities  59.36 B  
Z Score  25.44  
Annual Yield  0.0095 %  
Five Year Return  1.18 %  
Net Asset  411.98 B  
Last Dividend Paid  2.72 
About Microsoft Fundamental Analysis
The Macroaxis Fundamental Analysis modules help investors analyze Microsoft's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Microsoft using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Microsoft based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.Last Reported  Projected for 2023  
Deferred Revenue  53.8 B  48.8 B  
Cost of Revenue  65.9 B  58.6 B  
Revenues  211.9 B  185.4 B  
Revenue to Assets  0.51  0.57  
Revenue Per Employee  958.9 K  855.2 K 
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 decisionmaking process regarding taking a position in Microsoft. The overall investor sentiment generally increases the direction of a stock movement in a oneyear 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  30.64 
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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Macroaxis puts the power of mathematics on your side. We analyze your portfolios and positions such as Microsoft using complex mathematical models and algorithms, but make them easy to understand. There is no real person involved in your portfolio analysis. We perform a number of calculations to compute absolute and relative portfolio volatility, correlation between your assets, value at risk, expected return as well as over 100 different fundamental and technical indicators.Build Optimal Portfolios
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Check out Microsoft Piotroski F Score and Microsoft Altman Z Score analysis. 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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 0.202  Dividend Share 2.72  Earnings Share 9.69  Revenue Per Share 28.46  Quarterly Revenue Growth 0.083 
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.