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 |
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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 |
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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.
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Microsoft Operating Margin
Operating Margin |
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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 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 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 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
| 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 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 | 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.
Becoming a Better Investor with Macroaxis
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.