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Microsoft Corp
MIL:MSFT

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Microsoft Corp
MIL:MSFT
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Price: 373.45 EUR 0.93% Market Closed
Market Cap: €2.8T

P/FCFE

44
Current
1%
Cheaper
vs 3-y average of 44.5

Price to Free Cash Flow to Equity (P/FCFE) ratio compares a company`s market value to the free cash flow available to its shareholders. It`s similar to the P/OCF ratio but more precise, since it accounts for capital expenditures deducted from operating cash flow.

P/FCFE
44
=
Market Cap
€3T
/
Free Cash Flow to Equity
$69.9B

Price to Free Cash Flow to Equity (P/FCFE) ratio compares a company`s market value to the free cash flow available to its shareholders. It`s similar to the P/OCF ratio but more precise, since it accounts for capital expenditures deducted from operating cash flow.

P/FCFE
44
=
Market Cap
€3T
/
Free Cash Flow to Equity
$69.9B

Valuation Scenarios

Microsoft Corp is trading below its 3-year average

If P/FCFE returns to its 3-Year Average (44.5), the stock would be worth €377.13 (1% upside from current price).

Statistics
Positive Scenarios
1/4
Maximum Downside
-50%
Maximum Upside
+1%
Average Downside
26%
Scenario P/FCFE Value Implied Price Upside/Downside
Current Multiple 44 €373.45
0%
3-Year Average 44.5 €377.13
+1%
5-Year Average 40.9 €347.03
-7%
Industry Average 23.2 €196.83
-47%
Country Average 21.9 €185.39
-50%

Forward P/FCFE
Today’s price vs future free cash flow to equity

Not enough data available to calculate forward P/FCFE

Peer Comparison

All Multiples
P/FCFE
P/E
All Countries
Close
Market Cap P/FCFE P/E
US
Microsoft Corp
MIL:MSFT
3.1T EUR 44 24.6
US
Oracle Corp
NYSE:ORCL
494B USD 30.7 30.5
US
Palo Alto Networks Inc
NASDAQ:PANW
147.8B USD 42 99.3
US
CrowdStrike Holdings Inc
NASDAQ:CRWD
115.4B USD 95.2 -710.4
US
ServiceNow Inc
NYSE:NOW
94.5B USD 20.4 53.8
US
VMware Inc
XETRA:BZF1
58B EUR 18.6 47.9
US
Fortinet Inc
NASDAQ:FTNT
64.1B USD 28.8 34.6
US
Xperi Holding Corp
LSE:0M2A
54.6B USD 869.5 491.7
CN
Knowledge Atlas Technology JSC Ltd
HKEX:2513
382.1B HKD -269.9 -70.8
CN
MiniMax Group Inc
HKEX:100
217.8B HKD 54.3 -14.8
US
Zscaler Inc
NASDAQ:ZS
22.4B USD 18 -331.9
P/E Multiple
Earnings Growth PEG
US
Microsoft Corp
MIL:MSFT
Average P/E: 111.8
24.6
18%
1.4
US
Oracle Corp
NYSE:ORCL
30.5
37%
0.8
US
Palo Alto Networks Inc
NASDAQ:PANW
99.3
50%
2
US
CrowdStrike Holdings Inc
NASDAQ:CRWD
Negative Multiple: -710.4 N/A N/A
US
ServiceNow Inc
NYSE:NOW
53.8
54%
1
US
V
VMware Inc
XETRA:BZF1
47.9
39%
1.2
US
Fortinet Inc
NASDAQ:FTNT
34.6
15%
2.3
US
Xperi Holding Corp
LSE:0M2A
491.7
N/A N/A
CN
K
Knowledge Atlas Technology JSC Ltd
HKEX:2513
Negative Multiple: -70.8 N/A N/A
CN
MiniMax Group Inc
HKEX:100
Negative Multiple: -14.8 N/A N/A
US
Zscaler Inc
NASDAQ:ZS
Negative Multiple: -331.9 N/A N/A

Market Distribution

Higher than 72% of companies in the United States of America
Percentile
72nd
Based on 7 576 companies
72nd percentile
39.7
Low
0 — 13.1
Typical Range
13.1 — 36.5
High
36.5 —
Distribution Statistics
the United States of America
Min 0
30th Percentile 13.1
Median 21.9
70th Percentile 36.5
Max 3 188 432.5

Microsoft Corp
Glance View

In the dynamic world of technology, Microsoft Corp. has consistently positioned itself at the forefront of innovation and enterprise solutions since its founding in 1975 by Bill Gates and Paul Allen. Evolving from its initial foray into personal computing software, Microsoft engineered a transformation in the tech ecosystem with its Windows operating system. Today, it is a behemoth in various facets of the industry, from cloud computing with Azure to productivity software suites like Microsoft Office. Unlike the mythic tales of overnight success, Microsoft's ascent reflects strategic adaptability and foresight, crafting a narrative of calculated pivots and robust diversification. The company’s business model intricately weaves together a mélange of software products, services, and hardware. Its revenue streams are diversified across licensing fees, subscriptions, cloud services, and hardware sales. Azure, Microsoft's cloud platform, stands as a stalwart in the cloud computing arena, offering a multitude of services to enterprises, outpacing competitors through aggressive innovation and enterprise engagement. Meanwhile, the Office suite's transition to a subscription-based model underlines a shift toward a recurring revenue stream, which has fortified its financial stability. Microsoft's success isn’t merely rooted in software; its ventures into gaming with Xbox and acquisitions like LinkedIn signify a robust portfolio, leveraging a vast ecosystem to sustain growth and relevance across an array of markets.

MSFT Intrinsic Value
334.12 EUR
Overvaluation 11%
Intrinsic Value
Price €373.45
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