Microsoft Fundamentals

MSFT
 Stock
  

USD 292.85  1.53  0.53%   

Microsoft Corp fundamentals help investors to digest information that contributes to Microsoft Corp'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 Corp'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 Corp stock.
This module does not cover all equities due to inconsistencies in global equity categorizations. Continue to Equity Screeners to view more equity screening tools.
  
Microsoft Corp Direct Expenses is comparatively stable at the moment as compared to the past year. Microsoft Corp reported Direct Expenses of 62.65 Billion in 2021. Consolidated Income is likely to gain to about 78.5 B in 2022, whereas Gross Profit is likely to drop slightly above 116.5 B in 2022.

Microsoft Price to Book Analysis

Microsoft Corp's Price to Book (P/B) ratio is used to relate a company book value to its current market price. A high P/B ratio indicates that investors expect executives to generate more returns on their investments from a given set of assets. Book value is the accounting value of assets minus liabilities.
P/B 
 = 
MV Per Share 
BV Per Share 
More About Price to Book | All Equity Analysis

Current Microsoft Corp Price to Book

    
  14.42 X  
Most of Microsoft Corp's fundamental indicators, such as Price to Book, 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 Corp is considered to be undervalued, and we provide a buy recommendation. Otherwise, we render a sell signal.

Microsoft Price to Book Historical Pattern

Today, most investors in Microsoft Corp Stock are looking for potential investment opportunities by analyzing not only static indicators but also various Microsoft Corp'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 price to book 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 Corp price to book as a starting point in their analysis.
   Microsoft Corp Price to Book   
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       Timeline  
Price to Book ratio is mostly used in financial services industries where assets and liabilities are typically represented by dollars. Although low Price to Book ratio generally implies that the firm is undervalued, it is often a good indicator that the company may be in financial or managerial distress and should be investigated more carefully.
Compare to competition

Microsoft Book Value per Share

Book Value per Share

19.01

Microsoft Corp Book Value per Share is comparatively stable at the moment as compared to the past year. Microsoft Corp reported Book Value per Share of 22.22 in 2021
Based on the latest financial disclosure, the price to book indicator of Microsoft Corp is roughly 14.42 times. This is 27.95% higher than that of the Technology sector and significantly higher than that of the Software—Infrastructure industry. The price to book for all United States stocks is 51.63% lower than that of the firm.

Microsoft Corp Fundamental Drivers Relationships

Comparative valuation techniques use various fundamental indicators to help in determining Microsoft Corp's current stock value. Our valuation model uses many indicators to compare Microsoft Corp value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Microsoft Corp competition to find correlations between indicators driving Microsoft Corp's intrinsic value. More Info.
Microsoft Corp is rated top company in total debt category among related companies. It is considered to be number one stock in profit margin category among related companies . The ratio of Total Debt to Profit Margin for Microsoft Corp is about  2,136,822,022 . Microsoft Corp Total Debt is comparatively stable at the moment as compared to the past year. Microsoft Corp reported Total Debt of 61.27 Billion in 2021. Comparative valuation analysis is a catch-all model that can be used if you cannot value Microsoft Corp by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Microsoft Corp'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 price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Microsoft Corp's earnings, one of the primary drivers of an investment's value.

Microsoft Shares Owned by Insiders Peer Comparison

Stock peer comparison is one of the most widely used and accepted methods of equity analyses. It analyses Microsoft Corp's direct or indirect competition against its Shares Owned by Insiders to detect undervalued stocks with similar characteristics or determine the stocks which would be a good addition to a portfolio. Peer analysis of Microsoft Corp could also be used in its relative valuation, which is a method of valuing Microsoft Corp by comparing valuation metrics of similar companies.
Microsoft Corp is currently under evaluation in shares owned by insiders category among related companies.

Microsoft Corp Current Valuation Drivers

We derive many important indicators used in calculating different scores of Microsoft Corp from analyzing Microsoft Corp's financial statements. These drivers represent accounts that assess Microsoft Corp's ability to generate profits relative to its revenue, operating costs, and shareholders' equity. Below are some of Microsoft Corp's important valuation drivers and their relationship over time.
201720182019202020212022 (projected)
Net Income Per Employee169.9 K272.5 K270.92 K338.51 K329.13 K265.33 K
Revenue Per Employee1.13 M873.91 K875 K928.66 K897.15 K818.65 K
Average Assets252.36 B266.58 B287.13 B311.95 B346.31 B311.27 B
Earnings Before Interest Taxes and Depreciation Amortization EBITDA49.47 B58.06 B68.42 B85.13 B100.24 B81.78 B
Earnings Before Interest Taxes and Depreciation Amortization USD49.47 B58.06 B68.42 B85.13 B100.24 B81.78 B
Earnings before Tax36.47 B43.69 B53.04 B71.1 B83.72 B67.18 B
Average Equity82.49 B93.82 B112.24 B132.53 B160.36 B139.34 B
Enterprise Value708.28 B973.97 B1,479.54 B1,982.23 B1,877.43 B2,025.65 B
Free Cash Flow32.25 B38.26 B45.23 B56.12 B65.15 B55.24 B
Invested Capital104.66 B111.91 B113.08 B125.05 B147.45 B124.34 B
Invested Capital Average105.36 B108.1 B113.54 B120.65 B141.25 B118.76 B
Market Capitalization757.64 B1,026.51 B1,543.31 B2,040.3 B1,920.84 B2,072.49 B
Tangible Asset Value215.11 B236.78 B250.92 B276.27 B286.02 B264.71 B
Working Capital111.17 B106.13 B109.61 B95.75 B74.6 B88.88 B

Microsoft Fundamentals

About Microsoft Corp Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Microsoft Corp's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Microsoft Corp using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Microsoft Corp 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 ReportedProjected for 2022
Deferred Revenue48.4 B44.2 B
Cost of Revenue62.6 B54.4 B
Revenues198.3 B170.9 B
Revenue to Assets 0.54  0.59 
Revenue Per Employee897.1 K818.6 K
Microsoft Corporation develops, licenses, and supports software, services, devices, and solutions worldwide. Microsoft Corporation was founded in 1975 and is headquartered in Redmond, Washington. Microsoft Corp operates under SoftwareInfrastructure classification in the United States and is traded on NASDAQ Exchange. It employs 221000 people.

Microsoft Corp Investors Sentiment

The influence of Microsoft Corp'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 markets does not have a solid backing from leading economists and market statisticians.
Investor biases related to Microsoft Corp's public news can be used to forecast risks associated with 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 Corp. Please note that most equiteis that are difficult to arbitrage are affected by market sentiment the most.
Microsoft Corp'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 Corp'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 Corp's news discussions. The higher the estimated score, the more favorable is the investor's outlook on Microsoft Corp.

Microsoft Corp Implied Volatility

    
  54.47  
Microsoft Corp's implied volatility exposes the market's sentiment of Microsoft Corp stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Microsoft Corp'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 Corp stock will not fluctuate a lot when Microsoft Corp'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 Corp 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 Corp's short interest history, or implied volatility extrapolated from Microsoft Corp options trading.

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Macroaxis puts the power of mathematics on your side. We analyze your portfolios and positions such as Microsoft Corp 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.

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Additionally, see Microsoft Corp Piotroski F Score and Microsoft Corp Altman Z Score analysis. Note that the Microsoft Corp information on this page should be used as a complementary analysis to other Microsoft Corp'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 Watchlist Optimization module to optimize watchlists to build efficient portfolio or rebalance existing positions based on mean-variance optimization algorithm.

Complementary Tools for Microsoft Stock analysis

When running Microsoft Corp price analysis, check to measure Microsoft Corp'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 Corp is operating at the current time. Most of Microsoft Corp's value examination focuses on studying past and present price action to predict the probability of Microsoft Corp's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Microsoft Corp's price. Additionally, you may evaluate how the addition of Microsoft Corp to your portfolios can decrease your overall portfolio volatility.
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Is Microsoft Corp'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 Corp. 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 Corp listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of Microsoft Corp 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 Corp's value that differs from its market value or its book value, called intrinsic value, which is Microsoft Corp'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 Corp's market value can be influenced by many factors that don't directly affect Microsoft Corp'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 Corp's value and its price as these two are different measures arrived at by different means. Investors typically determine Microsoft Corp value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Microsoft Corp'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.