` Comparison: SWG vs MSFT - Alpha Spread

SWG
vs
MSFT

Over the past 12 months, SWG has significantly outperformed MSFT, delivering a return of +23% compared to the MSFT's 5% drop.

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SWG
MSFT
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Valuation Comparison

SWG Intrinsic Value
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MSFT Intrinsic Value
393.04 USD
Undervaluation 6%
Intrinsic Value
Price $370.35
Company Last Price Intrinsic Value DCF Value Multiples-Based Value Wall St Target
Shearwater Group PLC
LSE:SWG
39.5 GBX
Microsoft Corp
NASDAQ:MSFT
370.35 USD
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Valuation Scenario:
Bear Case
Base Case
Bull Case

Growth Comparison

Growth Over Time
SWG, MSFT

SWG
MSFT
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Revenue
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Company LTM Historical Growth Growth Streak % Positive Years Max Drawdown Volatility Forecasted Growth
3 Years 5 Years 10 Years 1 Year 3 Years
Shearwater Group PLC
Revenue
Microsoft Corp
Revenue

All metrics are calculated based on data from the last 10 years.

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Profitability Comparison

Free Cash Flow
SWG, MSFT

SWG
MSFT
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Free Cash Flow
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Company LTM Average Historical Growth FCF Margin Conversion
3 Years 5 Years 3 Years 5 Years 10 Years
Shearwater Group PLC
LSE:SWG
Microsoft Corp
NASDAQ:MSFT
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What is Free Cash Flow?

Gross Margin

SWG
23.6%
MSFT
68.6%

Operating Margin

SWG
-30.3%
MSFT
46.7%

Net Margin

SWG
-26.9%
MSFT
39%

FCF Margin

SWG
-1.7%
MSFT
25.3%

ROE

SWG
-29.5%
MSFT
34.4%

ROA

SWG
-21.1%
MSFT
19.9%

ROIC

SWG
-23.3%
MSFT
23.7%

ROCE

SWG
-30.6%
MSFT
29.7%

Solvency Comparison

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Balance Sheet Comparison
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Stocks Performance

Stocks Performance
SWG, MSFT

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Performance Gap
SWG, MSFT

Performance Gap Between SWG and MSFT
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Performance By Year
SWG, MSFT

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SWG
MSFT
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Intrinsic Value is all-important and is the only logical way to evaluate the relative attractiveness of investments and businesses.

Warren Buffett