Microsoft Stock Alpha and Beta Analysis

MSFT Stock  USD 317.01  2.52  0.79%   
This module allows you to check different measures of market premium (i.e., alpha and beta) for all equities such as Microsoft. It also helps investors analyze the systematic and unsystematic risks associated with investing in Microsoft over a specified time horizon. Remember, high Microsoft's alpha is almost always a sign of good performance; however, a high beta will depend on investors' risk tolerance level and may signal increased volatility and potential future overvaluation.
Sharpe Ratio
Expected Return
Please note that although Microsoft alpha is a measure of relative return and represented here as a single number, it indicates the percentage above or below your selected benchmark (i.e., NYSE Composite index.) So in this particular case, Microsoft did 0.06  worse than the index. Remember, a high alpha is always good. Beta, on the other hand, measures the volatility (or risk) of an investment. It is an indication of Microsoft stock's relative risk over its benchmark. Microsoft has a beta of 0.86  . Microsoft returns are very sensitive to returns on the market. As the market goes up or down, Microsoft is expected to follow. Enterprise Value is likely to gain to about 2684.6 B in 2023, whereas Book Value per Share is likely to drop 22.93 in 2023.

Microsoft Quarterly Book Value per Share


Alpha is a measure of relative performance on a risk-adjusted basis, while beta measures volatility against the benchmark. The goal is to know if an investor is being compensated for the volatility risk taken. The return on investment might be better than its reference but still not compensate for the assumption of the risk.
Check out Microsoft Backtesting, Microsoft Valuation, Microsoft Correlation, Microsoft Hype Analysis, Microsoft Volatility, Microsoft History and analyze Microsoft Performance. For more information on how to buy Microsoft Stock please use our How to Invest in Microsoft guide.

Microsoft Market Premiums

Investors always prefer to have the highest possible return on investment, coupled with the lowest possible volatility. Microsoft market risk premium is the additional return an investor will receive from holding Microsoft long position in a well-diversified portfolio. The market premium is part of the Capital Asset Pricing Model (CAPM), which most analysts and investors use to calculate the acceptable rate of return on investment in Microsoft. At the center of the CAPM is the concept of risk and reward, which is usually communicated by investors using alpha and beta measures. Alpha and beta are two of the key measurements used to evaluate Microsoft's performance over market.
α-0.06   β0.86

Microsoft expected buy-and-hold returns

Although buy-and-hold investment strategy may not appeal to all investors, it may be used as a good measure of Microsoft's Buy-and-hold return. Our buy-and-hold chart shows how Microsoft performed over your current time horizon against a typical interest-earning bank account and a selected benchmark.

Microsoft Market Price Analysis

Market price analysis indicators help investors to evaluate how Microsoft stock reacts to ongoing and evolving market conditions. The investors can use it to make informed decisions about market timing, and determine when trading Microsoft shares will generate the highest return on investment. By understating and applying Microsoft stock market price indicators, traders can identify Microsoft position entry and exit signals to maximize returns.

Microsoft Return and Market Media

The median price of Microsoft for the period between Tue, Jun 27, 2023 and Mon, Sep 25, 2023 is 331.77 with a coefficient of variation of 2.73. The daily time series for the period is distributed with a sample standard deviation of 9.06, arithmetic mean of 331.84, and mean deviation of 7.21. The Stock received substential amount of media coverage during this period.
 Price Growth (%)  
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About Microsoft Beta and Alpha

For many years both, Alpha and Beta indicators are used by professional money managers as critical performance measurement tools across virtually all financial instruments including Microsoft or other stocks. Alpha measures the amount that position in Microsoft has returned in comparison to a selected market index or another relevant benchmark. In other words, Alpha is the excess return on an investment relative to the performance of your selected benchmark. Beta, on the other hand, measures the relative risk of your investment.
 2018 2022 (projected)
Long Term Debt to Equity0.650.2
Interest Coverage325.19373.97

Microsoft Upcoming Company Events

As portrayed in its financial statements, the presentation of Microsoft's financial position is often influenced by management's estimates, judgments, and sometimes even manipulations. In the best case, Microsoft's leadership is honest, while the outside auditors are strict and uncompromising. Whatever the case, investors should always follow all of Microsoft's public filing events to personally review all filings and be reasonable and skeptical to interpret all of the financial statements of Microsoft. Please utilize our Beneish M Score to check the likelihood of Microsoft's management manipulating its earnings.
24th of October 2023
Upcoming Quarterly Report
23rd of January 2024
Next Financial Report
30th of September 2023
Next Fiscal Quarter End
23rd of July 2024
Next Fiscal Year End
30th of June 2023
Last Quarter Report
30th of June 2023
Last Financial Announcement

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Check out Microsoft Backtesting, Microsoft Valuation, Microsoft Correlation, Microsoft Hype Analysis, Microsoft Volatility, Microsoft History and analyze Microsoft Performance. 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 Focused Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.

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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Microsoft technical stock analysis exercises models and trading practices based on price and volume transformations, such as the moving averages, relative strength index, regressions, price and return correlations, business cycles, stock market cycles, or different charting patterns.
A focus of Microsoft technical analysis is to determine if market prices reflect all relevant information impacting that market. A technical analyst looks at the history of Microsoft trading pattern rather than external drivers such as economic, fundamental, or social events. It is believed that price action tends to repeat itself due to investors' collective, patterned behavior. Hence technical analysis focuses on identifiable price trends and conditions. More Info...