Microsoft Stock Current Valuation
MSFT Stock | USD 417.32 0.90 0.22% |
Valuation analysis of Microsoft helps investors to measure Microsoft's intrinsic value by examining its available valuation indicators, including the cash flow records, the balance sheet account changes and income statement patterns. Enterprise Value Multiple is likely to drop to 21.25 in 2024. Fundamental drivers impacting Microsoft's valuation include:
Price Book 12.9861 | Enterprise Value 3.1 T | Enterprise Value Ebitda 25.6487 | Price Sales 13.5958 | Forward PE 31.25 |
Overvalued
Today
Please note that Microsoft's price fluctuation is very steady at this time. Calculation of the real value of Microsoft is based on 3 months time horizon. Increasing Microsoft's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for Microsoft is useful when determining the fair value of the Microsoft stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Microsoft. Since Microsoft is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Microsoft Stock. However, Microsoft's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value. Historical | Market 417.32 | Real 363.1 | Target 392.34 | Hype 416.99 |
The real value of a stock, also known as the intrinsic value, is the underlying worth of a company that is reflected in its stock price. It is based on the company's financial performance, assets, liabilities, growth prospects, management team, industry conditions, and other relevant factors. The real value of a stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, price-to-book ratio, and other valuation metrics. The real value of a stock may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence the stock's price. It is important to note that the real value of a stock is not a fixed number and may change over time based on changes in the company's performance and other relevant factors.
Estimating the potential upside or downside of Microsoft helps investors to forecast how Microsoft stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Microsoft more accurately as focusing exclusively on Microsoft's fundamentals will not take into account other important factors: Microsoft Current Valuation Analysis
Microsoft's Enterprise Value is a firm valuation proxy that approximates the current market value of a company. It is typically used to determine the takeover or merger price of a firm. Unlike Market Cap, this measure takes into account the entire liquid asset, outstanding debt, and exotic equity instruments that the company has on its balance sheet. When a takeover occurs, the parent company will have to assume the target company's liabilities but will take possession of all cash and cash equivalents.
More About Current Valuation | All Equity Analysis
2021 | 2022 | 2023 | 2024 (projected) | Capital Expenditures | 23.9B | 28.1B | 32.3B | 33.9B | Depreciation | 14.5B | 13.9B | 15.9B | 16.7B |
Enterprise Value | = | Market Cap + Debt | - | Cash |
Current Microsoft Current Valuation | 3.1 T |
Most of Microsoft's fundamental indicators, such as Current Valuation, 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 Current Valuation Driver Correlations
Understanding the fundamental principles of building solid financial models for Microsoft is extremely important. It helps to project a fair market value of Microsoft Stock properly, considering its historical fundamentals such as Current Valuation. Since Microsoft's main accounts across its financial reports are all linked and dependent on each other, it is essential to analyze all possible correlations between related accounts. However, instead of reviewing all of Microsoft's historical financial statements, investors can examine the correlated drivers to determine its overall health. This can be effectively done using a conventional correlation matrix of Microsoft's interrelated accounts and indicators.
Click cells to compare fundamentals
Enterprise Value can be a useful tool to compare companies with different capital structures. Long term liability and current cash or cash equivalents can have a huge impact on market valuation of a given company.
Competition |
In accordance with the recently published financial statements, Microsoft has a Current Valuation of 3.1 T. This is much higher than that of the Software sector and significantly higher than that of the Information Technology industry. The current valuation for all United States stocks is significantly lower than that of the firm.
Microsoft Current Valuation 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 Current Valuation 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 current valuation 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
Return On Equity | 0.39 | ||||
Return On Asset | 0.15 | ||||
Profit Margin | 0.36 % | ||||
Operating Margin | 0.44 % | ||||
Current Valuation | 3.1 T | ||||
Shares Outstanding | 7.43 B | ||||
Shares Owned By Insiders | 0.05 % | ||||
Shares Owned By Institutions | 73.85 % | ||||
Number Of Shares Shorted | 48.24 M | ||||
Price To Earning | 26.64 X | ||||
Price To Book | 12.99 X | ||||
Price To Sales | 13.60 X | ||||
Revenue | 211.91 B | ||||
Gross Profit | 135.62 B | ||||
EBITDA | 102.02 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 | 32.06 X | ||||
Cash Flow From Operations | 87.58 B | ||||
Short Ratio | 2.02 X | ||||
Earnings Per Share | 11.08 X | ||||
Price To Earnings To Growth | 2.11 X | ||||
Target Price | 456.81 | ||||
Number Of Employees | 221 K | ||||
Beta | 0.89 | ||||
Market Capitalization | 3.09 T | ||||
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 | 32.93 | ||||
Annual Yield | 0.01 % | ||||
Five Year Return | 1.18 % | ||||
Net Asset | 411.98 B | ||||
Last Dividend Paid | 2.86 |
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.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.
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Try AI Portfolio ArchitectCheck 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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.