First Time Loading...
Search stocks here...
Dashboard Stock Screener Intrinsic Value Calculator DCF Value Calculator Discount Rate Calculator
Pricing About Contact Us
Sign Up Log in

Microsoft Corp
NASDAQ:MSFT

Watchlist Manager
Microsoft Corp Logo
Microsoft Corp
NASDAQ:MSFT
Watchlist
Price: 331.21 USD -0.5% Market Closed
Updated: May 31, 2023
Section:
 

Intrinsic Value

Microsoft Corp. engages in the development and support of software, services, devices, and solutions. [ Read More ]

The intrinsic value of one MSFT stock under the Base Case scenario is 212.65 USD. Compared to the current market price of 331.21 USD, Microsoft Corp is Overvalued by 36%.

Key Points:
MSFT Intrinsic Value
Base Case
212.65 USD
Overvaluation 36%
Intrinsic Value
Price
Worst Case
Base Case
Best Case
What is intrinsic value?

Fundamental Analysis

Financials
208B
+2%
Revenue
Growth Rates:
1 Year
+8%
3 Years
+50%
5 Years
+96%
7 Years
+139%
10 Years
+173%
86B
+2%
Operating Income
Growth Rates:
1 Year
+5%
3 Years
+65%
5 Years
+148%
7 Years
+266%
10 Years
+218%
69B
+2%
Net Income
Growth Rates:
1 Year
-5%
3 Years
+49%
5 Years
+338%
7 Years
+559%
10 Years
+321%
83.4B
-1%
Operating Cash Flow
Growth Rates:
1 Year
-4%
3 Years
+44%
5 Years
+92%
7 Years
+168%
10 Years
+173%
-26B
+5%
Capital Expenditures
Growth Rates:
1 Year
+11%
3 Years
+77%
5 Years
+162%
7 Years
+249%
10 Years
+744%
57.4B
-4%
Free Cash Flow
Growth Rates:
1 Year
-10%
3 Years
+32%
5 Years
+71%
7 Years
+143%
10 Years
+109%

Balance Sheet Decomposition
Microsoft Corp

380B
Assets
185B
Liabilities
380B
Assets
185B
Liabilities
Current Assets 164B
Cash & Short-Term Investments 104B
Receivables 37.4B
Other Current Assets 22B
Non-Current Assets 216B
Long-Term Investments 9.4B
PP&E 102B
Intangibles 77.8B
Other Non-Current Assets 27B
Current Liabilities 85.7B
Accounts Payable 15.3B
Accrued Liabilities 12.7B
Other Current Liabilities 57.6B
Non-Current Liabilities 99.7B
Long-Term Debt 57.3B
Other Non-Current Liabilities 42.4B
Efficiency
68%
Gross Margin
Average:
3 Years
68%
5 Years
67%
41%
Operating Margin
Average:
3 Years
41%
5 Years
38%
33%
Net Margin
Average:
3 Years
35%
5 Years
31%
28%
FCF Margin
Average:
3 Years
32%
5 Years
31%
39%
ROE
Average:
3 Years
44%
5 Years
40%
19%
ROA
Average:
3 Years
19%
5 Years
16%
29%
ROIC
Average:
3 Years
34%
5 Years
33%
31%
ROCE
Average:
3 Years
29%
5 Years
26%
Fundamental Scores

MSFT Profitability Score
Profitability Due Diligence

Microsoft Corp's profitability score is 79/100. The higher the profitability score, the more profitable the company is.

Exceptional 3-Year Average ROE
Positive Free Cash Flow
Exceptional 3-Year Average ROIC
Positive Gross Profit
79/100
Profitability
Score

Microsoft Corp's profitability score is 79/100. The higher the profitability score, the more profitable the company is.

MSFT Solvency Score
Solvency Due Diligence

Microsoft Corp's solvency score is 84/100. The higher the solvency score, the more solvent the company is.

High Interest Coverage
High Altman Z-Score
Low D/E
Negative Net Debt
84/100
Solvency
Score

Microsoft Corp's solvency score is 84/100. The higher the solvency score, the more solvent the company is.

See Also
Fundamental Analysis
Profitability Analysis Solvency Analysis Revenue Breakdown Earnings Call Transcripts
Profitability Analysis Solvency Analysis Revenue Breakdown Earnings Call Transcripts

Wall St
Price Targets

MSFT Price Targets Summary
Microsoft Corp

Wall Street analysts forecast MSFT stock price to rise over the next 12 months.

According to Wall Street analysts, the average 1-year price target for MSFT is 337.73 USD with a low forecast of 234.32 USD and a high forecast of 420 USD.

MSFT Lowest Forecast
Wall Street Target
234.32 USD
29% Downside
MSFT Average Forecast
Wall Street Target
337.73 USD
2% Upside
MSFT Highest Forecast
Wall Street Target
420 USD
27% Upside
Lowest
Price Target
234.32 USD
29% Downside
Average
Price Target
337.73 USD
2% Upside
Highest
Price Target
420 USD
27% Upside
View Analyst Estimates
View Analyst Estimates

Competitive Landscape

MSFT Competitors
Microsoft Corp

MSFT Suppliers & Customers
Microsoft Corp

Suppliers
552
Customers
500
Suppliers Map
Customers Map

Ownership

MSFT Insider Trading
Buy and sell transactions by insiders

Microsoft Corp insiders have only sold shares in the past 12 months.

During the last 12 months Microsoft Corp insiders have not bought any shares, and sold 45.5M USD worth of shares. The last transaction was made on May 18, 2023 by Capossela Christopher C (EVP, Chief Marketing Officer), who sold 1.6M USD worth of MSFT shares.

Summary Transactions
Sold
0-3
months
16.8M USD
2
3-6
months
1.7M USD
2
6-9
months
27M USD
4
9-12
months
0 USD
0
Bought
0-3
months
0
0 USD
3-6
months
0
0 USD
6-9
months
0
0 USD
9-12
months
No Insider Transactions
0
0 USD
Cumulative Transactions Amount
Period Sold Bought Net
3 Months
16.8M USD
N/A
-16.8M
6 Months
18.5M USD
N/A
-18.5M
9 Months
45.5M USD
N/A
-45.5M
12 Months
45.5M USD
N/A
-45.5M
Why is insider trading important?

Shareholder Return

MSFT Return Decomposition
Main factors of price return

Market capitalization of MSFT shares increased by 242.65% over the past 5 years. The primary factor behind the change was an increase in earnings growth from 16.6B to 69B, leading to a growth in the market capitalization of Microsoft Corp by 281.11%.

Period
5 Years
1 Year 2 Years 3 Years 5 Years 7 Years 10 Years

Market capitalization of MSFT shares increased by 242.65% over the past 5 years. The primary factor behind the change was an increase in earnings growth from 16.6B to 69B, leading to a growth in the market capitalization of Microsoft Corp by 281.11%.

+242.65%
719B 2.5T
Market Cap Growth
-38.46%
43.4 35.7
P/E Change
+281.11%
16.6B 69B
Earnings Growth
Market Cap Growth
+242.65%
P/E Change
-38.46%
Earnings Growth
+281.11%
What is price return decomposition?

MSFT Price
Microsoft Corp

1M 1M
+9%
6M 6M
+31%
1Y 1Y
+23%
3Y 3Y
+86%
5Y 5Y
+254%
10Y 10Y
+1 039%
Annual Price Range
331.21
52w Low
212.65
52w High
332.89
Price Metrics
Average Annual Return 39.09%
Standard Deviation of Annual Returns 26.07%
Max Drawdown -37%
Shares Statistics
Market Capitalization 2.5T USD
Shares Outstanding 7 435 489 792
Percentage of Shares Shorted 0.57%

Company Profile

Microsoft Corp Logo
Microsoft Corp

Country

United States of America

Industry

Technology

Market Cap

2.5T USD

Dividend Yield

0.77%

Description

Microsoft Corp. engages in the development and support of software, services, devices, and solutions. The company is headquartered in Redmond, Washington and currently employs 181,000 full-time employees. The firm develops and supports a range of software products, services, devices, and solutions. The firm's segments include Productivity and Business Processes, Intelligent Cloud, and More Personal Computing. The firm's products include operating systems; cross-device productivity applications; server applications; business solution applications; desktop and server management tools; software development tools; and video games. The company also designs, manufactures, and sells devices, including personal computers (PCs), tablets, gaming and entertainment consoles, other intelligent devices, and related accessories. The company offers an array of services, including cloud-based solutions that provide customers with software, services, platforms, and content, and it provides solution support and consulting services. The company markets and distributes its products and services through original equipment manufacturers, direct, and distributors and resellers.

Contact

WASHINGTON
Redmond
1 Microsoft Way
+14258828080.0
https://www.microsoft.com/en-us

IPO

1986-03-13

Employees

181 000

Officers

Chairman & CEO
Mr. Satya Nadella
Pres & Vice Chairman
Mr. Bradford L. Smith LCA
Exec. VP & CFO
Ms. Amy E. Hood
Exec. VP & Chief Commercial Officer
Mr. Judson Althoff
Exec. VP of Bus. Devel., Strategy & Ventures
Mr. Christopher David Young
Corp. VP & Chief Accounting Officer
Ms. Alice L. Jolla
Show More
Gen. Mang. of Investor Relations
Brett Iversen
Corp. VP for Corp. Communications
Mr. Frank X. Shaw
Exec. VP & Chief Marketing Officer
Mr. Christopher C. Capossela
VP, Deputy Gen. Counsel of Corp., External & Legal Affairs and Assistant Sec.
Mr. Keith Ranger Dolliver Esq.
Show Less

See Also

Summary
MSFT intrinsic value, competitors valuation, and company profile.
DCF Valuation
MSFT stock valuation using Discount Cash Flow valuation method.
Relative Valuation
MSFT stock valuation using valuation multiples.
Wall Street Estimates
MSFT price targets and financial estimates made by Wall st analysts.
Profitability Analysis
Detailed analysis of the company's profitability.
Solvency Analysis
Analysis of the financial position and solvency of the company.
Financials
Income Statement, Balance Sheet, Cash Flow Statement.
Discount Rate
MSFT stock discount rate: cost of equity and WACC.
Summary
DCF Valuation
Relative Valuation
Wall Street Estimates
Profitability Analysis
Solvency Analysis
Financials
Discount Rate
Similar Stocks
What is the Intrinsic Value of one MSFT stock?

The intrinsic value of one MSFT stock under the Base Case scenario is 212.65 USD.

Is MSFT stock undervalued or overvalued?

Compared to the current market price of 331.21 USD, Microsoft Corp is Overvalued by 36%.

ALPHA SPREAD
Join more than 54,100+ value investors using Alpha Spread
Create a free account
or see our plans & pricing

Company

About Us Pricing Terms of Service Privacy Policy Affiliate Program

Help

What is Intrinsic Value? Help Center Contact Us

Tools

Stock Screener Intrinsic Value Calculator DCF Value Calculator Discount Rate Calculator

Stocks

Most Undervalued Stocks High Profitability Stocks High Solvency Stocks Most Popular Stocks

© 2023 Alpha Spread Limited. All Rights Reserved.

www.alphaspread.com is not operated by a broker, a dealer, or a registered investment adviser. Under no circumstances does any information posted on www.alphaspread.com represent a recommendation to buy or sell a security. The information on this site, and in its related newsletters, is not intended to be, nor does it constitute, investment advice or recommendations. The information on this site is in no way guaranteed for completeness, accuracy or in any other way. In no event shall Alpha Spread Limited be liable to any member, guest or third party for any damages of any kind arising out of the use of any content or other material published or available on www.alphaspread.com, or relating to the use of, or inability to use, www.alphaspread.com or any content, including, without limitation, any investment losses, lost profits, lost opportunity, special, incidental, indirect, consequential or punitive damages. Past performance is a poor indicator of future performance.