MSFT
6/8LiveMicrosoft Corporation
NasdaqGS · Technology · Software — Infrastructure
$491.71
Blended fair value
$303.14
Well above fair value
Margin of safety
-62.21%
against blended fair value
Expected return
+4.07%
per year, mid case
52-week range
Valuation verdict
Based on your current assumptions
Well above fair value
Fair value $303.14 against a market price of $491.71.
- Margin of safety
- -62.21%
- Expected return
- +4.07%/ yr
Company facts
- Market cap
- $3.65T
- P/E (5yr avg)
- 38.9x
- Day range
- $484.30 – $492.44
- 52-week range
- $349.20 – $553.72
- Volume
- 19.1M
- Sector
- Technology
- Industry
- Software — Infrastructure
- Employees
- 228,000
Cloud infrastructure, productivity software, and gaming. Azure and Microsoft 365 supply the majority of operating profit.
Falls short on 2 pillars: p/e ratio, price to free cash flow.
P/E ratio
Fail5yr average P/E below 22.5
Price to free cash flow
Fail5yr average P/FCF below 22.5
Return on invested capital
Pass5yr average ROIC above 9%
Revenue growth
Pass10yr CAGR above 0%
Net income growth
Pass10yr CAGR above 0%
Free cash flow growth
Pass10yr CAGR above 0%
Shares outstanding
PassShare count flat or shrinking over 5 years
Long-term debt to FCF
PassDebt payable from under 5 years of free cash flow
Everything Money is not an investment adviser. The fair-value range on this page is the arithmetic output of assumptions you control, not a forecast or a recommendation. Verify figures against the company's filings before acting. How the method works