Microsoft Z Score
MSFT   USA Stock  USD 265.92 4.42 1.69% 
Microsoft  Z Score 
Microsoft Z Score Analysis
Microsoft Corp's ZScore is a simple linear, multifactor model that measures the financial health and economic stability of a company. The score is used to predict the probability of a firm going into bankruptcy within next 24 months or two fiscal years from the day stated on the accounting statements used to calculate it. The model uses five fundamental business ratios that are weighted according to algorithm of Professor Edward Altman who developed it in the late 1960s at New York University..Current Microsoft Corp Z Score  14.4 
Most of Microsoft Corp's fundamental indicators, such as Z Score, 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 Z Score Driver Correlations
Understanding the fundamental principles of building solid financial models for Microsoft Corp is extremely important. It helps to project a fair market value of Ford stock properly, considering its historical fundamentals such as Z Score. Since Microsoft Corp'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 Corp'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 Corp's interrelated accounts and indicators.
Click cells to compare fundamentals
To calculate ZScore one would need to know current working capital of the company, its total assets, and liabilities, amount of latest retained earnings as well as earnings before interest and tax. ZScore can be used to compare the odds of bankruptcy of companies in a similar line of business or firms operating in the same industry. Companies with ZScores above 3.1 are generally considered to be stable and healthy with a low probability of bankruptcy. Scores that fall between 1.8 and 3.1 lie in a socalled 'grey area' with scores of less than 1, indicating the high probability of distress. Z Score is used widely by financial auditors, accountants, money managers, loan processers, wealth advisers, as well as day traders. In the last 25 years, many financial models that utilize z score has been proved to be successful as a predictor of corporate bankruptcy.
Compare to competition 
Based on the company's disclosures, Microsoft Corp has a Z Score of 14.4. This is 7.06% higher than that of the Technology sector and significantly higher than that of the Softwareâ€”Infrastructure industry. The z score for all United States stocks is 65.14% lower than that of the firm.
Microsoft Z Score 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 Z Score 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 z score 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.
2017  2018  2019  2020  2021  2022 (projected)  
Net Income Per Employee  169.9 K  272.5 K  270.92 K  338.51 K  304.66 K  248.58 K  
Revenue Per Employee  1.13 M  873.91 K  875 K  928.66 K  835.8 K  783.75 K  
Average Assets  252.36 B  266.58 B  287.13 B  311.95 B  358.74 B  304.75 B  
Earnings Before Interest Taxes and Depreciation Amortization EBITDA  49.47 B  58.06 B  68.42 B  85.13 B  97.9 B  105.63 B  
Earnings Before Interest Taxes and Depreciation Amortization USD  49.47 B  58.06 B  68.42 B  85.13 B  97.9 B  105.63 B  
Earnings before Tax  36.47 B  43.69 B  53.04 B  71.1 B  81.77 B  88.22 B  
Average Equity  82.49 B  93.82 B  112.24 B  132.53 B  152.41 B  129.42 B  
Enterprise Value  708.28 B  973.97 B  1,479.54 B  1,982.23 B  2,279.56 B  2,459.53 B  
Free Cash Flow  32.25 B  38.26 B  45.23 B  56.12 B  64.54 B  52.78 B  
Invested Capital  104.66 B  111.91 B  113.08 B  125.05 B  143.81 B  116.02 B  
Invested Capital Average  105.36 B  108.1 B  113.54 B  120.65 B  138.75 B  111.21 B  
Market Capitalization  757.64 B  1,026.51 B  1,543.31 B  2,040.3 B  2,346.35 B  2,531.59 B  
Tangible Asset Value  215.11 B  236.78 B  250.92 B  276.27 B  317.71 B  271.36 B  
Working Capital  111.17 B  106.13 B  109.61 B  95.75 B  110.11 B  106.07 B 
Microsoft Fundamentals
Return On Equity  49.30 %  
Return On Asset  14.59 %  
Profit Margin  38.51 %  
Operating Margin  48.65 %  
Current Valuation  2420 B  
Shares Outstanding  7.51 B  
Shares Owned by Insiders  0.06 %  
Shares Owned by Institutions  71.77 %  
Number of Shares Shorted  42.98 M  
Price to Earning  29.15 X  
Price to Book  12.87 X  
Price to Sales  11.10 X  
Revenue  176.25 B  
Gross Profit  115.86 B  
EBITDA  85.75 B  
Net Income  67.88 B  
Cash and Equivalents  130.58 B  
Cash per Share  17.39 X  
Total Debt  78.93 B  
Debt to Equity  0.52 %  
Current Ratio  2.16 X  
Book Value Per Share  20.24 X  
Cash Flow from Operations  81.95 B  
Short Ratio  1.48 X  
Earnings Per Share  8.94 X  
Price to Earnings To Growth  2.16 X  
Number of Employees  181 K  
Beta  0.87  
Market Capitalization  1960 B  
Total Asset  193.47 B  
Retained Earnings  29.97 B  
Working Capital  80.3 B  
Current Asset  139.66 B  
Current Liabilities  59.36 B  
Z Score  14.4  
Five Year Return  1.39 %  
Last Dividend Paid  2.48 
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.Microsoft Corporation develops, licenses, and supports software, services, devices, and solutions worldwide. Microsoft Corporation was founded in 1975 and is based in Redmond, Washington. Microsoft Corp operates under SoftwareInfrastructure classification in the United States and is traded on NASDAQ Exchange. It employs 181000 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 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 markets does not have a solid backing from leading economists and market statisticians.Microsoft Corp Implied Volatility  45.06 
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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Additionally, see Microsoft Corp Piotroski F Score and Microsoft Corp Valuation 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 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 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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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.