Microsoft Stock Performance

MSFT Stock  USD 273.78  1.55  0.57%   
On a scale of 0 to 100, Microsoft holds a performance score of 10. The company secures a Beta (Market Risk) of 1.0352, which conveys a somewhat significant risk relative to the market. Let's try to break down what Microsoft's beta means in this case. Microsoft returns are very sensitive to returns on the market. As the market goes up or down, Microsoft is expected to follow. Although it is vital to follow Microsoft price patterns, it is good to be conservative about what you can do with the information regarding equity historical price patterns. The philosophy towards estimating future performance of any stock is to evaluate the business as a whole together with its past performance, including all available fundamental and technical indicators. By analyzing Microsoft technical indicators, you can presently evaluate if the expected return of 0.25% will be sustainable into the future. Please exercises Microsoft variance, as well as the relationship between the value at risk and skewness to make a quick decision on whether Microsoft current price movements will revert.
  

Microsoft Performance

10 of 100

Compared to the overall equity markets, risk-adjusted returns on investments in Microsoft are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak technical and fundamental indicators, Microsoft unveiled solid returns over the last few months and may actually be approaching a breakup point. ...more

Structure and Payout Changes

Forward Dividend Yield
0.0097
Payout Ratio
0.2851
Last Split Factor
2:1
Forward Dividend Rate
2.72
Dividend Date
2023-06-08
Begin Period Cash Flow14.2 B
Total Cashflows From Investing Activities-30.3 B

Microsoft Relative Risk vs. Return Landscape

If you would invest  23,759  in Microsoft on December 22, 2022 and sell it today you would earn a total of  3,619  from holding Microsoft or generate 15.23% return on investment over 90 days. Microsoft is currently generating 0.2549% in daily expected returns and assumes 1.9346% risk (volatility on return distribution) over the 90 days horizon. In different words, 16% of stocks are less volatile than Microsoft, and 96% of all traded equity instruments are projected to make higher returns than the company over the 90 days investment horizon.
  Daily Expected Return (%)  
       Risk (%)  
Given the investment horizon of 90 days Microsoft is expected to generate 2.05 times more return on investment than the market. However, the company is 2.05 times more volatile than its market benchmark. It trades about 0.13 of its potential returns per unit of risk. The NYSE Composite is currently generating roughly -0.01 per unit of risk.

Microsoft Market Risk Analysis

Today, many novice investors tend to focus exclusively on investment returns with little concern for Microsoft's investment risk. Standard deviation is the most common way to measure market volatility of stocks, such as Microsoft, and traders can use it to determine the average amount a Microsoft's price has deviated from the expected return over a period of time. It is calculated by determining the expected price for the established period and then subtracting this figure from each price point. The differences are then squared, summed, and averaged to produce the variance.

Sharpe Ratio = 0.1318

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Estimated Market Risk

 1.93
  actual daily
 16 
84% of assets are more volatile
1616

Expected Return

 0.25
  actual daily
 
96% of assets have higher returns
44

Risk-Adjusted Return

 0.13
  actual daily
 10 
90% of assets perform better
1010
Based on monthly moving average Microsoft is performing at about 10% of its full potential. If added to a well diversified portfolio the total return can be enhanced and market risk can be reduced. You can increase risk-adjusted return of Microsoft by adding it to a well-diversified portfolio.

Microsoft Fundamentals Growth

Microsoft Stock prices reflect investors' perceptions of the future prospects and financial health of Microsoft, and Microsoft fundamentals are critical determinants of its market performance. Overall, investors pay close attention to revenue and earnings growth, profit margins, and debt levels. These fundamentals can have a significant impact on Microsoft Stock performance.

About Microsoft Performance

To evaluate Microsoft Stock as a possible investment, you need to clearly understand its upside potential, downside risk, and overall future performance outlook. You may be satisfied when Microsoft generates a 15% return over the last few months, but what if the market is generating 25% over the same period? In this case, it makes sense to compare Microsoft Stock's performance with different market indexes, such as the Dow or NASDAQ Composite. These indexes can act as benchmarks that will help you to understand Microsoft market performance in a much more refined way. The Macroaxis performance score is an integer between 0 and 100 that represents Microsoft's market performance from a risk-adjusted return perspective. Generally speaking, the higher the score, the better is overall performance as compared to other investors. The score is normalized against the average investing universe (the best we can interpret from the data available). Within this methodology, scores of individual equity instruments will always be inferior to the scores of portfolios of equities as portfolios typically diversify a lot of unsystematic risks away. The formula to derive the Macroaxis score bases on multiple unequally-weighted factors. For more information, refer to our portfolio performance evaluation section.
Please also refer to our technical analysis and fundamental analysis pages.
Last ReportedProjected for 2023
Effect of Exchange Rate Changes on Cash-126.9 M-130.2 M
Return on Investment 46.05  41.35 
Return on Average Assets 0.24  0.21 
Return on Average Equity 0.52  0.46 
Return on Invested Capital 0.55  0.55 
Return on Sales 0.50  0.47 

Things to note about Microsoft performance evaluation

Checking the ongoing alerts about Microsoft for important developments is a great way to find new opportunities for your next move. Stock alerts and notifications screener for Microsoft help investors to be notified of important events, changes in technical or fundamental conditions, and significant headlines that can affect investment decisions.
Microsoft is unlikely to experience financial distress in the next 2 years
Microsoft has a poor financial position based on the latest SEC disclosures
About 74.0% of the company shares are owned by institutional investors
On 9th of March 2023 Microsoft paid $ 0.68 per share dividend to its current shareholders
Latest headline from engadget.com: Google Bard AI hands-on A work in progress with plenty of caveats
Evaluating Microsoft's performance can involve analyzing a variety of financial metrics and factors. Some of the key considerations to evaluate Microsoft's stock performance include:
  • Analyzing Microsoft's financial statements, including its income statement, balance sheet, and cash flow statement, helps in understanding its overall financial health and growth potential.
  • Getting a closer look at valuation ratios like price-to-earnings (P/E) ratio, price-to-sales (P/S) ratio, and price-to-book (P/B) ratio help in understanding whether Microsoft's stock is overvalued or undervalued compared to its peers.
  • Examining Microsoft's industry or sector and how it is performing can give you an idea of its growth potential and how it is positioned relative to its competitors.
  • Evaluating Microsoft's management team can have a significant impact on its success or failure. Reviewing the track record and experience of Microsoft's management team can help you assess the company's leadership.
  • Pay attention to analyst opinions and ratings of Microsoft's stock. These opinions can provide insight into Microsoft's potential for growth and whether the stock is currently undervalued or overvalued.
It's essential to remember that evaluating Microsoft's stock performance is not an exact science, and many factors can impact Microsoft's stock market price. Therefore, it's also important to diversify your portfolio and not rely solely on one company or stock for your investments.
Additionally, see Correlation Analysis. 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..

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When running Microsoft 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 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
(0.11) 
Dividend Share
2.6
Earnings Share
9
Revenue Per Share
27.327
Quarterly Revenue Growth
0.02
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 Microsoft value 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.