Microsoft Stock Fundamentals

MSFT Stock  USD 417.32  0.90  0.22%   
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.
At this time, Microsoft's Cost Of Revenue is comparatively stable compared to the past year. Total Operating Expenses is likely to gain to about 69.7 B in 2024, whereas Non Recurring is likely to drop slightly above 261.6 M in 2024.
  
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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.
 2021 2022 2023 2024 (projected)
Capital Expenditures23.9B28.1B32.3B33.9B
Depreciation14.5B13.9B15.9B16.7B

Profit Margin

 = 

Net Income

Revenue

X

100

More About Profit Margin | All Equity Analysis

Current Microsoft Profit Margin

    
  0.36 %  
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.
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 Pretax Profit Margin

Pretax Profit Margin

0.48

At this time, Microsoft's Pretax Profit Margin is comparatively stable compared to the past year.
Based on the latest financial disclosure, Microsoft has a Profit Margin of 0.3627%. This is 127.9% 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 128.56% 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 cash and equivalents category among related companies. It is regarded third in price to earning category among related companies . The ratio of Cash And Equivalents to Price To Earning for Microsoft is about  1,302,702,703 . At this time, Microsoft's Cash And Equivalents is comparatively stable compared to the past year.. Comparative valuation analysis is a catch-all 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 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's earnings, one of the primary drivers of an investment's value.

Microsoft Retained Earnings 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 Retained Earnings 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 retained earnings category among related companies.

Microsoft ESG Sustainability

Some studies have found that companies with high sustainability scores are getting higher valuations than competitors with lower social-engagement 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

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 ReportedProjected for 2024
Current Deferred Revenue58.5 B61.5 B
Total Revenue243.7 B255.9 B
Cost Of Revenue75.7 B79.5 B
Ebit Per Revenue 0.48  0.41 

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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:
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.

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
11.08
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.