Microsoft Valuation

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MSFT -- USA Stock  

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What would the acquisition value of Microsoft be today? Microsoft Cash and Equivalents Turnover is comparatively stable at the moment as compared to the past year. Microsoft reported Cash and Equivalents Turnover of 9.72 in 2019. Net Cash Flow Investment Acquisitions and Disposals is likely to grow to about 670 M in 2020, whereas Free Cash Flow per Share is likely to drop 5.01 in 2020. Microsoft secures a last-minute Real Value of $198.73 per share. The latest price of the firm is $206.26. At this time, the firm appears to be fairly valued. Our model forecasts the value of Microsoft from analyzing the firm fundamentals such as return on equity of 44.20 %, profit margin of 33.36 %, and current valuation of 1510 B as well as examining its technical indicators and Probability Of Bankruptcy. In general, we recommend acquiring undervalued stocks and selling overvalued stocks since, at some point, asset prices and their ongoing real values will merge together.

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Microsoft Valuation Module provides a unique way to ballpark how much the company is worth today. It is done using both, our quantitative analysis of the company fundamentals as well as its intrinsic market price estimation to project the real value. We also take into consideration other essential factors such as Microsoft's management style, its c-level domain expertise and tenure, its overall leadership history as well as current capital structure, and future earnings potential.
Fairly Valued
Today
206.26
5th of July 2020
196.87
Downside
198.73
Real Value
226.89
Upside
Microsoft is very steady asset. Calculation of real value of Microsoft is based on 3 months time horizon. Increasing Microsoft time horizon generally increases accuracy of value calculation and significantly improves predictive power of the methodology used.
Earnings
Estimates (15)
LowProjected EPSHigh
5.625.705.81
Details
Hype
Prediction
LowEstimated ValueHigh
205.30207.16209.02
Details
Potential
Annual Dividend
LowIncome Per ShareHigh
1.251.261.28
Details
25 Analysts
Consensus
LowTarget PriceHigh
155.00201.26250.00
Details

  Microsoft Investments

Microsoft Valuation Drivers Correlation

Many accounts on the financial statements of Microsoft are highly interrelated and sometimes correlated. Consequently, when conducting Microsoft's valuation analysis, one should examine all of the accounts reported to obtain a complete picture of its financial situation. We provide a unique feature to present a conventional correlation table purposely composed against different valuation-related drivers of Microsoft
Click cells to compare fundamentals   View All Correlations

Microsoft Market Cap

Microsoft is considered to be number one stock in market capitalization category among related companies. Market capitalization of Software?Infrastructure industry is now estimated at about 1.59 Trillion. Microsoft totals roughly 1.56 Trillion in market capitalization claiming about 98% of equities listed under Software?Infrastructure industry.
Capitalization  Workforce  Revenue  Total debt  Valuation

Microsoft Valuation Ratios as Compared to Competition

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 regarded second in price to book category among related companies. It is rated below average in beta category among related companies totaling about  0.07  of Beta per Price to Book. The ratio of Price to Book to Beta for Microsoft is roughly  14.70 

About Microsoft Valuation

The Macroaxis Equity Valuation Mechanism determines the current worth of Microsoft on a weekly bases. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Microsoft. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Microsoft based exclusively on its fundamental and basic technical indicators. By analyzing Microsoft's financials, quarterly and monthly indicators, and its related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Microsoft's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Microsoft. We calculate exposure to Microsoft's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Microsoft's related companies.
Last ReportedProjected for 2020
Gross Profit 95,372,950,000  85,745,568,421 
Profit Margin 0.28  0.25 
Microsoft Corporation develops, licenses, and supports software, services, devices, and solutions worldwide. The company was founded in 1975 and is headquartered in Redmond, Washington. Microsoft operates under SoftwareInfrastructure classification in the United States and is traded on BATS Exchange. It employs 144000 people.

Microsoft Dividends Analysis For Valuation

Dividend Yield is likely to grow to 0.0158 in 2020, whereas Payment of Dividends and Other Cash Distributions is likely to drop (13.4 B) in 2020. . Accumulated Retained Earnings Deficit is likely to grow to about 30 B in 2020, whereas Earning Before Interest and Taxes EBIT is likely to drop slightly above 42.9 B in 2020.
Last ReportedProjected for 2020
Payment of Dividends and Other Cash Distributions(12,429,900,000) (13,411,207,895) 
Dividend Yield 0.0117  0.0158 
Dividends per Basic Common Share 2.07  1.75 
There are various types of dividends Microsoft can pay to its shareholders, and the actual value of the dividend is determined on a per-share basis. It is to be paid equally to all of Microsoft shareholders on a specific date, known as the payable date. The cash dividend is the most common type of dividend payment - it is the payment of actual cash from Microsoft directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Microsoft pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Microsoft by the value of the dividends paid out.

Microsoft Valuation Growth Rates

Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines. Note, investing in growth stocks can be very risky. If the company such as Microsoft does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
Quick Ratio2.73
Earnings Quarterly Growth22.10%
Revenue Growth14.60%
Payout Ratio32.33%
Enterprise Value To Ebitda23.57
Earnings Growth22.80%
Enterprise Value To Revenue10.89

Microsoft Current Valuation Indicators

Valuation refers to the process of determining the present value of Microsoft and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Microsoft we look at many different elements of the entity such as Microsoft's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation.
Book Value per Share
Enterprise Value over EBIT
Enterprise Value over EBITDA
Price to Book Value
Additionally, see Stocks Correlation. Please also try Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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