Microsoft Z Score
MSFT Stock  USD 315.75 2.11 0.67% 
Microsoft  Z Score 
Microsoft Z Score Analysis
Microsoft'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 Z Score  25.44 
Most of Microsoft'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 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 is extremely important. It helps to project a fair market value of Microsoft Stock properly, considering its historical fundamentals such as Z Score. 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
To calculate a ZScore, one would need to know a company's current working capital, its total assets and liabilities, and the amount of its latest earnings as well as earnings before interest and tax. ZScores 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 highest probability of distress. Z Score is a used widely measure by financial auditors, accountants, money managers, loan processors, wealth advisers, and day traders. In the last 25 years, many financial models that utilize zscores proved it to be successful as a predictor of corporate bankruptcy.
Competition 
Based on the company's disclosures, Microsoft has a Z Score of 25.44. This is 89.14% higher than that of the Software sector and significantly higher than that of the Information Technology industry. The z score for all United States stocks is 191.74% 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'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 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 z score 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 socialengagement 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 Institutional Holders
Institutional Holdings refers to the ownership stake in Microsoft that is held by large financial organizations, pension funds or endowments. Institutions may purchase large blocks of Microsoft's outstanding shares and can exert considerable influence upon its management. Institutional holders may also work to push the share price higher once they own the stock. Extensive social media coverage, TV shows, articles in highprofile magazines, and presentations at investor conferences help move the stock higher, increasing Microsoft's value.Last Transaction  Type  Shares  Value  
Vanguard Group Inc  20230630  Common Shares  653.2 M  222.5 B  
Wellington Management Group Llp  20230630  Common Shares  66.9 M  22.8 B  
Wells Fargo Company  20230630  Common Shares  37 M  12.6 B  
Ubs Asset Management Americas Inc  20230630  Common Shares  39.2 M  11.3 B  
Ubs Group Ag  20230630  Common Shares  22.9 M  7.8 B  
T Rowe Price Investment Management Inc  20230630  Common Shares  13.1 M  4.5 B  
Voya Investment Management Llc  20230630  Common Shares  11.3 M  3.9 B  
Winslow Capital Management Llc  20230630  Common Shares  7.7 M  2.6 B  
Victory Capital Management Inc  20230630  Common Shares  6.4 M  2.2 B  
Us Bancorp  20230630  Common Shares  5.9 M  2 B  
Truist Financial Corp  20230630  Common Shares  4.8 M  1.6 B 
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.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 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 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 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  25.18 
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 Valuation 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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.