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Microsoft Corp
NASDAQ:MSFT

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Microsoft Corp Logo
Microsoft Corp
NASDAQ:MSFT
Watchlist
Price: 417.32 USD 0.22% Market Closed
Updated: Mar 19, 2024

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 273.24 USD. Compared to the current market price of 417.32 USD, Microsoft Corp is Overvalued by 35%.

Key Points:
MSFT Intrinsic Value
Base Case
273.24 USD
Overvaluation 35%
Intrinsic Value
Price
Worst Case
Base Case
Best Case

Valuation Backtest
Microsoft Corp

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Fundamental Analysis

Revenue Growth Pertains Amid Cost Gains
2024-Q2 Earnings Call

Revenue Growth Pertains Amid Cost Gains

The outlook for Q3 anticipates revenue growth across various segments: 10-12% for 'Productivity and Business Processes', and 18-19% for 'Intelligent Cloud', driven by stable Azure growth. 'More Personal Computing' is expected to grow by 11-14%, even as device revenues decline. Demand for Microsoft Cloud and Microsoft 365 remains strong. Investments in AI and cloud infrastructure are increasing costs, with capital expenditures to rise and Microsoft Cloud's gross margin to reduce by about 1 point. Overall, operating margins are projected to improve by 1-2 points year-over-year, suggestive of efficient growth and prudent expense management.

Financials

Balance Sheet Decomposition
Microsoft Corp

Current Assets 147.4B
Cash & Short-Term Investments 81B
Receivables 42.8B
Other Current Assets 23.5B
Non-Current Assets 323.2B
Long-Term Investments 13.4B
PP&E 128.7B
Intangibles 148.8B
Other Non-Current Assets 32.3B
Current Liabilities 121B
Accounts Payable 17.7B
Accrued Liabilities 11.6B
Short-Term Debt 27B
Other Current Liabilities 64.7B
Non-Current Liabilities 111.3B
Long-Term Debt 63.4B
Other Non-Current Liabilities 47.8B
Efficiency

Earnings Waterfall
Microsoft Corp

Revenue
227.6B USD
Cost of Revenue
-68.8B USD
Gross Profit
158.7B USD
Operating Expenses
-58.2B USD
Operating Income
100.5B USD
Other Expenses
-18B USD
Net Income
82.5B USD

Free Cash Flow Analysis
Microsoft Corp

Last Value
3-Years Average
FCF Margin
Conversion Rate
History
Components
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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 68/100. The higher the solvency score, the more solvent the company is.

High Altman Z-Score
Low D/E
Long-Term Solvency
Positive Net Debt
68/100
Solvency
Score

Microsoft Corp's solvency score is 68/100. The higher the solvency score, the more solvent the company is.

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 465.95 USD with a low forecast of 301.08 USD and a high forecast of 573.76 USD.

Lowest
Price Target
301.08 USD
28% Downside
Average
Price Target
465.95 USD
12% Upside
Highest
Price Target
573.76 USD
37% Upside
View Analyst Estimates
View Analyst Estimates

Competitive Landscape

Ownership

MSFT Insider Trading
Buy and sell transactions by insiders

Cumulative Transactions Amount
Period Sold Bought Net
3 Months
6 Months
9 Months
12 Months
Why is insider trading important?

Shareholder Return

MSFT Price
Microsoft Corp

1M 1M
+4%
6M 6M
+27%
1Y 1Y
+54%
3Y 3Y
+85%
5Y 5Y
+270%
10Y 10Y
+1 148%
Annual Price Range
417.32
52w Low
271.64
52w High
425.22
Price Metrics
Average Annual Return 25.56%
Standard Deviation of Annual Returns 36.5%
Max Drawdown -3%
Shares Statistics
Market Capitalization 3.1T USD
Shares Outstanding 7 430 440 000
Percentage of Shares Shorted 0.65%

MSFT Return Decomposition
Main factors of price return

What is price return decomposition?

MSFT News

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Last Important Events
Microsoft Corp

Significant happenings or occurrences that are of interest to investors. These could be company-specific developments or market-wide shifts.

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Sentiment Analysis
Microsoft Corp

Today
Last 7 Days 7D
Last 30 Days 30D
Last 90 Days 90D

Company Profile

Microsoft Corp Logo
Microsoft Corp

Country

United States of America

Industry

Technology

Market Cap

3.1T USD

Dividend Yield

0.72%

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
President & Vice Chairman
Mr. Bradford L. Smith LCA
Executive VP & CFO
Ms. Amy E. Hood
Executive Vice President of Business Development, Strategy & Ventures
Mr. Christopher David Young
Corporate VP & Chief Accounting Officer
Ms. Alice L. Jolla
Executive VP of AI & CTO
Mr. James Kevin Scott
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Vice President of Investor Relations
Brett Iversen
Chief Legal Officer
Mr. Hossein Nowbar
Chief Communications Officer
Mr. Frank X. Shaw
Executive VP & Chief Marketing Officer
Mr. Takeshi Numoto
Show Less

See Also

Discover More
What is the Intrinsic Value of one MSFT stock?

The intrinsic value of one MSFT stock under the Base Case scenario is 273.24 USD.

Is MSFT stock undervalued or overvalued?

Compared to the current market price of 417.32 USD, Microsoft Corp is Overvalued by 35%.