Microsoft Corp
NASDAQ:MSFT
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%.
Valuation Backtest
Microsoft Corp
Run backtest to discover the historical profit from buying and selling MSFT stocks based on their intrinsic value.
Analyze the historical link between intrinsic value and market price to make more informed investment decisions.
Fundamental Analysis
Revenue Growth Pertains Amid Cost Gains
2024-Q2 Earnings Call
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.
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 |
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
What is Free Cash Flow?
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.
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.
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
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.
Ownership
MSFT Insider Trading
Buy and sell transactions by insiders
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Shareholder Return
MSFT Price
Microsoft Corp
Average Annual Return | 25.56% |
Standard Deviation of Annual Returns | 36.5% |
Max Drawdown | -3% |
Market Capitalization | 3.1T USD |
Shares Outstanding | 7 430 440 000 |
Percentage of Shares Shorted | 0.65% |
MSFT News
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.
Sentiment Analysis
Microsoft Corp
Company Profile
Country
Industry
Market Cap
Dividend Yield
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
IPO
Employees
Officers
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%.