Microsoft Valuation

MSFT Stock  USD 422.99  5.00  1.17%   
At this time, the firm appears to be fairly valued. Microsoft secures a last-minute Real Value of $406.79 per share. The latest price of the firm is $422.99. Our model forecasts the value of Microsoft from analyzing the firm fundamentals such as Current Valuation of 3.1 T, return on equity of 0.36, and Profit Margin of 0.36 % as well as examining its technical indicators and probability of bankruptcy. Key fundamental drivers impacting Microsoft's valuation include:
Price Book
10.8217
Enterprise Value
3.1 T
Enterprise Value Ebitda
22.1965
Price Sales
12.5184
Forward PE
31.746
Fairly Valued
Today
422.99
Please note that Microsoft's price fluctuation is very steady at this time. Calculation of the real value of Microsoft is based on 3 months time horizon. Increasing Microsoft's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Microsoft's intrinsic value may or may not be the same as its current market price of 422.99, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value.
Historical Market  422.99 Real  406.79 Target  392.34 Hype  423.23 Naive  427.52
The intrinsic value of Microsoft's stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence Microsoft's stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
405.47
Downside
406.79
Real Value
465.29
Upside
Estimating the potential upside or downside of Microsoft helps investors to forecast how Microsoft stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Microsoft more accurately as focusing exclusively on Microsoft's fundamentals will not take into account other important factors:
Earnings
Estimates (0)
LowProjectedHigh
3.083.143.25
Details
Hype
Prediction
LowEstimatedHigh
421.91423.23424.55
Details
Potential
Annual Dividend
LowForecastedHigh
1.901.911.92
Details
54 Analysts
Consensus
LowTarget PriceHigh
357.03392.34435.50
Details
Traditionally, analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Microsoft's intrinsic value based on its ongoing forecasts of Microsoft's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Microsoft's closest peers.

Microsoft Cash

19.23 Billion

Microsoft Valuation Trend

Microsoft's real value is important for investors to make better decisions and a more accurate overall view of Microsoft's financial worth over time. Using both Microsoft's enterprise value as well as its market capitalization is the best way to gauge the value of the company and is usually enough for investors to make market timing conclusions.

Microsoft Revenue by Product

Microsoft Total Value Analysis

Microsoft is now forecasted to have valuation of 3.1 T with market capitalization of 3.18 T, debt of 97.85 B, and cash on hands of 34.7 B. Please note that valuation may be misleading and is a subject to auditing or accounting errors. We encourage investors to vigilantly validate all of the Microsoft fundamentals before making equity appraisal based on enterprise value of the company
  Takeover PriceMarket CapDebt ObligationsCash
3.1 T
3.18 T
97.85 B
34.7 B

Microsoft Investor Information

About 74.0% of the company shares are owned by institutional investors. The company has Price/Earnings To Growth (PEG) ratio of 2.21. Microsoft recorded earning per share (EPS) of 12.11. The entity last dividend was issued on the 21st of November 2024. The firm had 2:1 split on the 18th of February 2003. Based on the key indicators related to Microsoft's liquidity, profitability, solvency, and operating efficiency, Microsoft may be sliding down financialy. It has an above-average chance of going through some form of financial crunch next quarter.
Current ValueLast YearChange From Last Year 10 Year Trend
Operating Profit Margin0.290.4464
Way Down
Slightly volatile
Total Cash From Operating Activities124.5 B118.5 B
Sufficiently Up
Slightly volatile
Operating Income114.9 B109.4 B
Sufficiently Up
Slightly volatile

Microsoft Asset Utilization

The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Microsoft has an asset utilization ratio of 47.86 percent. This implies that the Company is making $0.48 for each dollar of assets. An increasing asset utilization means that Microsoft is more efficient with each dollar of assets it utilizes for everyday operations.
 
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Covid

Microsoft Ownership Allocation

Microsoft maintains a total of 7.43 Billion outstanding shares. The majority of Microsoft outstanding shares are owned by institutional investors. These third-party entities are usually referred to as non-private investors looking to shop for positions in Microsoft to benefit from reduced commissions. Consequently, institutional holders are subject to a different set of regulations than regular investors in Microsoft. Please pay attention to any change in the institutional holdings of Microsoft as this could imply that something significant has changed or is about to change at the company. On November 15, 2024, Senator Tommy Tuberville of US Senate acquired $15k to $50k worth of Microsoft's common stock.

Microsoft Profitability Analysis

The company reported the previous year's revenue of 245.12 B. Net Income was 88.14 B with profit before overhead, payroll, taxes, and interest of 165.36 B.

Microsoft Past Distributions to stockholders

About Microsoft Valuation

The stock valuation mechanism determines Microsoft's current worth on a daily basis. In general, an absolute valuation approach attempts to find the value of Microsoft based exclusively on its fundamental and basic technical indicators. As compared to an absolute model, our relative valuation model uses a comparative analysis of Microsoft. We calculate exposure to Microsoft's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of Microsoft's related companies.
Last ReportedProjected for Next Year
Gross Profit171 B179.6 B
Pretax Profit Margin 0.44  0.42 
Operating Profit Margin 0.45  0.29 
Net Profit Margin 0.36  0.22 
Gross Profit Margin 0.70  0.87 
Microsoft's stock price is the clearest measure of market expectations about its performance. Without stock valuation, investors cannot independently discern whether Microsoft's value is low or high relative to the company's performance and growth projections. Determining the market value of Microsoft can be done in different ways, such as multiplying its stock price by its outstanding shares.
A single share of Microsoft represents a small ownership stake in the entity. As a stockholder of Microsoft, your percentage of company ownership is determined by dividing the number of shares you own by the total number of shares outstanding and then multiplying that amount by 100. Owning stock in a company generally confers both corporate voting rights and income from any dividends paid to the stock owner.

Microsoft Dividends Analysis For Valuation

At this time, Microsoft's Dividends Paid is comparatively stable compared to the past year. Dividend Payout Ratio is likely to gain to 0.32 in 2024, whereas Dividend Yield is likely to drop 0.01 in 2024. . At this time, Microsoft's Retained Earnings are comparatively stable compared to the past year. Retained Earnings Total Equity is likely to gain to about 101.8 B in 2024, whereas Price Earnings Ratio is likely to drop 32.12 in 2024.
Last ReportedProjected for Next Year
Dividends Paid21.8 B22.9 B
Dividend Yield 0.01  0.01 
Dividend Payout Ratio 0.25  0.32 
Dividend Paid And Capex Coverage Ratio 1.79  1.70 
There are various types of dividends Microsoft can pay to its shareholders, and the actual value of the dividend is determined on a per-share basis. It is to be paid equally to all of Microsoft shareholders on a specific date, known as the payable date. The cash dividend is the most common type of dividend payment - it is the payment of actual cash from Microsoft directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Microsoft pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Microsoft by the value of the dividends paid out.

Microsoft Growth Indicators

Investing in growth stocks can be very risky. If the company such as Microsoft does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
Common Stock Shares Outstanding7.5 B
Quarterly Earnings Growth Y O Y0.104
Forward Price Earnings31.746

Microsoft Current Valuation Indicators

Microsoft's valuation analysis is a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final Microsoft's valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Microsoft, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Microsoft's valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Microsoft's worth.

Additional Tools for Microsoft Stock Analysis

When running Microsoft's price analysis, check to measure Microsoft's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Microsoft is operating at the current time. Most of Microsoft's value examination focuses on studying past and present price action to predict the probability of Microsoft's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Microsoft's price. Additionally, you may evaluate how the addition of Microsoft to your portfolios can decrease your overall portfolio volatility.