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Microsoft Corp
XETRA:MSF

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Microsoft Corp
XETRA:MSF
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Price: 343.4 EUR -5.49% Market Closed
Market Cap: €2.6T

EV/IC

5.3
Current
29%
Cheaper
vs 3-y average of 7.5

Enterprise Value to Invested Capital (EV/IC) ratio compares a company`s total enterprise value to the capital invested in its business. It shows how efficiently the company`s market value reflects the funds used to generate returns.

EV/IC
5.3
=
Enterprise Value
€3T
/
Invested Capital
$578.4B

Enterprise Value to Invested Capital (EV/IC) ratio compares a company`s total enterprise value to the capital invested in its business. It shows how efficiently the company`s market value reflects the funds used to generate returns.

EV/IC
5.3
=
Enterprise Value
€3T
/
Invested Capital
$578.4B

Valuation Scenarios

Microsoft Corp is trading below its 3-year average

If EV/IC returns to its 3-Year Average (7.5), the stock would be worth €483.46 (41% upside from current price).

Statistics
Positive Scenarios
2/4
Maximum Downside
-72%
Maximum Upside
+45%
Average Downside
8%
Scenario EV/IC Value Implied Price Upside/Downside
Current Multiple 5.3 €343.4
0%
3-Year Average 7.5 €483.46
+41%
5-Year Average 7.8 €499.62
+45%
Industry Average 2.9 €185.82
-46%
Country Average 1.5 €95.64
-72%

Forward EV/IC
Today’s price vs future invested capital

Not enough data available to calculate forward EV/IC

Peer Comparison

All Multiples
EV/IC
P/E
All Countries
Close
Market Cap EV/IC P/E
US
Microsoft Corp
XETRA:MSF
3.1T EUR 5.3 24.6
US
Oracle Corp
NYSE:ORCL
494B USD 3 30.5
US
Palo Alto Networks Inc
NASDAQ:PANW
147.8B USD 7.2 99.3
US
CrowdStrike Holdings Inc
NASDAQ:CRWD
115.4B USD 19.3 -710.4
US
ServiceNow Inc
NYSE:NOW
94.5B USD 4.8 53.8
US
VMware Inc
XETRA:BZF1
58B EUR 2.8 47.9
US
Fortinet Inc
NASDAQ:FTNT
64.1B USD 9.3 34.6
US
Xperi Holding Corp
LSE:0M2A
54.6B USD 61.1 491.7
CN
Knowledge Atlas Technology JSC Ltd
HKEX:2513
382.1B HKD 182.6 -70.8
CN
MiniMax Group Inc
HKEX:100
217.8B HKD 430.2 -14.8
US
Zscaler Inc
NASDAQ:ZS
22.4B USD 6.4 -331.9
P/E Multiple
Earnings Growth PEG
US
Microsoft Corp
XETRA:MSF
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 80% of companies in the United States of America
Percentile
80th
Based on 11 657 companies
80th percentile
4.4
Low
0 — 0.9
Typical Range
0.9 — 2.9
High
2.9 —
Distribution Statistics
the United States of America
Min 0
30th Percentile 0.9
Median 1.5
70th Percentile 2.9
Max 566 432.7

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.

MSF Intrinsic Value
355.33 EUR
Undervaluation 3%
Intrinsic Value
Price €343.4
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