Microsoft Corporation
524.51USD
+3.4300 (+0.66%)
Not enough data yet
A reading needs 5 members, each at least 14 days old with a track record on this site (simulated portfolios and calls), who shared a take in the last 30 days; 2 of them need a strong record.
Sign in to share your take on MSFT.
Microsoft Corporation, a technology company, develops and supports a portfolio of technology solutions for individuals and businesses worldwide. Its products include operating systems, server applications, business solution applications, software development tools, desktop and server management tools, and video games; and devices, such as PCs, tablets, gaming and entertainment consoles, other intelligent devices, and related accessories. The company's Productivity and Business Processes segment offers Microsoft 365 Commercial, Enterprise Mobility + Security, Power BI, Exchange, SharePoint, Microsoft Teams, Microsoft 365 Security and Compliance, Microsoft 365 Copilot, and Windows Commercial on-premises and Office licensed on-premises. This segment also provides Microsoft 365 Consumer products and cloud services; LinkedIn, including talent solutions, marketing solutions, subscriptions, and sales solutions; Dynamics 365, a set of cloud-based applications; and on-premises ERP and CRM applications. Its Intelligent Cloud segment offers server products and cloud services; cloud and AI consumption-based services, GitHub cloud services, health and life sciences cloud services, as well as virtual desktop offerings, and other cloud services; SQL Server, Windows Server, Visual Studio, System Center, and related client access licenses; and enterprise support services, industry solutions, Microsoft partner network, and learning experience. The company's More Personal Computing segment provides Windows OEM licensing and devices comprising Surface and PC accessories; XBOX hardware, and XBOX first- and third-party content and services; XBOX Game Pass and other subscriptions; XBOX Cloud Gaming, advertising, and other cloud services; and search advertising consisting of Bing, Copilot, Microsoft News, Microsoft Edge, and third-party affiliates. It sells its products through partners and retail networks. The company was founded in 1975 and is headquartered in Redmond, Washington.
Price
Reading the stored fundamentals…
Dated 52-week rows are the highest and lowest CLOSE and the day each happened, which sits a little inside the intraday range a vendor quotes. Quotes are refreshed once a night — during a session the price above is the previous close.
Is the price low against peers, cash flow and analyst targets?
Do analysts expect earnings and revenue to keep growing?
1 of 6 checks could not be assessed (there is no analyst coverage stored).
Has the business grown and earned good returns on its filed numbers?
Can the balance sheet carry its debt?
Is the dividend decent, covered and steady?
Each axis asks six plain questions of the stored data. A check that passes counts one. A check the stored data cannot answer is left out of the count, never counted as a fail, and an axis needs four answerable checks to show a result. Axes are never added together: there is no overall score. The thresholds are conventional rules of thumb and are blunt across sectors, so each check is listed with its rule and the figure it used.
P/E below peers
Trailing P/E is positive and below the median of its peers: the companies in its industry if there are at least 5, else its sector if at least 10, else the whole market if at least 30, always in the same currency.
P/E 29.2 against a peer median of 43.0 (33 USD companies in Software - Infrastructure).
Passed
PEG ratio
The PEG ratio is positive and at most 1.5.
PEG 1.70.
Did not pass
EV/EBITDA below peers
EV/EBITDA is positive and below the peer median, with peers chosen as for P/E. Not applied to financial companies.
EV/EBITDA 20.3 against a peer median of 33.3 (37 USD companies in Software - Infrastructure).
Passed
Price/book below peers
Price to book is positive and below the peer median, with peers chosen as for P/E.
Price/book 8.81 against a peer median of 6.06 (42 USD companies in Software - Infrastructure).
Did not pass
Statements: SEC filings, newest period 06/2026.
Peers: P/E against 33 USD companies in Software - Infrastructure; EV/EBITDA against 37 USD companies in Software - Infrastructure; price/book against 42 USD companies in Software - Infrastructure.
Rules of thumb applied to stored filings and quote data. Statements are as of the newest period shown above; multiples, analyst targets, estimates and yield come from a best-effort refresh and can lag by days. A count of plain checks, not a rating, a valuation or investment advice. Terms
Free cash flow yield
Free cash flow is at least 4.5% of market cap, the risk-free rate used across this site. Not applied to financial companies.
Free cash flow yield 1.7% against a 4.5% risk-free rate.
Did not pass
Analyst target above price
The mean analyst target is at least 15% above the last close, from at least 3 analysts. A published consensus, not a fair value.
Mean analyst target above the last close by 14.7% (53 analysts).
Did not pass
Earnings growth, next year
Consensus EPS for next fiscal year is at least 10% above this year's consensus, from at least 3 analysts.
Next year's EPS: consensus up 20.0% (33 analysts).
Passed
Earnings growth, this year
Consensus EPS for this fiscal year is at least 10% above last year's figure on the same street basis, from at least 3 analysts.
This year's EPS: consensus up 14.4% (34 analysts).
Passed
Revenue growth, next year
Consensus revenue for next fiscal year is at least 5% above this year's consensus, from at least 3 analysts.
Next year's revenue: consensus up 19.7% (52 analysts).
Passed
Revenue growth, this year
Consensus revenue for this fiscal year is at least 5% above last year's reported revenue, from at least 3 analysts.
This year's revenue: consensus up 18.0% (51 analysts).
Passed
Estimates rising
More analysts raised than cut this year's EPS estimate over the last 90 days, with at least 2 revisions in all.
No analyst estimates are stored for this security.
Not assessed
Revenue growth, latest quarter
Revenue in the latest quarter is at least 8% above the same quarter a year earlier.
Latest-quarter revenue up 17.7% on a year earlier.
Passed
Earnings growth, multi-year
Net income grew at least 5% a year over up to 5 fiscal years (at least 3 annual figures, positive at both ends).
Net income grew 16.9% a year, FY2021 to FY2026.
Passed
Earnings growth, last year
Net income over the latest twelve months is above the twelve months before it, and positive.
Net income up 31.3% (FY2026 against FY2025).
Passed
Revenue growth, multi-year
Revenue grew at least 3% a year over up to 5 fiscal years (at least 3 annual figures).
Revenue grew 14.6% a year, FY2021 to FY2026.
Passed
Return on equity
Return on equity is at least 15%: twelve-month net income over average equity. Not meaningful when equity is negative.
Return on equity 34.0%: twelve-month net income over the average equity.
Passed
Return on assets
Return on assets is at least 5%: twelve-month net income over average assets. Not applied to financial companies.
Return on assets 19.4%: twelve-month net income over the average assets.
Passed
Cash earnings
Operating cash flow over the latest twelve months is positive and at least net income. Not applied to financial companies.
Operating cash flow was at or above net income over the last twelve months.
Passed
Current ratio
Current assets are at least 1.0x current liabilities. Not applied to financial companies.
Current ratio 1.2x.
Passed
Short-term assets cover long-term liabilities
Current assets are at least the liabilities that fall due after a year (total liabilities less current liabilities). Not applied to financial companies.
Current assets are 1.4x the liabilities due after a year.
Passed
Debt to equity
Total debt is at most 100% of equity; no debt passes, negative equity with debt does not. Not applied to financial companies.
Total debt is 9% of equity.
Passed
Net debt to EBITDA
Net debt (total debt less cash) is at most 3.0x EBITDA; a net cash position passes. Not applied to financial companies.
Net debt is 0.1x EBITDA.
Passed
Interest cover
Operating income covers interest expense at least 3.0x; no debt passes. Not applied to financial companies.
Operating income covers interest 50.9x.
Passed
Cash flow to debt
Operating cash flow is at least 20% of total debt; no debt passes. Not applied to financial companies.
Operating cash flow is 454.0% of total debt.
Passed
Dividend yield
The dividend yield is at least 2%.
Dividend yield 0.75%.
Did not pass
Payout ratio
Dividends paid are at most 75% of net income. Not applied to real estate companies, whose net income is after depreciation.
Dividends paid were 20% of net income.
Passed
Free cash flow cover
Free cash flow covers the dividends paid at least 1.0x. Not applied to financial companies.
Free cash flow covers dividends 2.5x.
Passed
Paid every year
A dividend was paid in every one of the last 4 to 8 fiscal years stored (consecutive years, all present). A year missing from the filings data is not read as no dividend, so a gap makes this not assessed.
A dividend was paid in all 8 fiscal years, FY2019 to FY2026.
Passed
No cuts
Total dividends paid never fell by more than 20% from one fiscal year to the next in that window.
No fall of more than 20% between fiscal years, FY2019 to FY2026.
Passed
Growing dividend
Total dividends paid grew at least 3% a year across that window. The total, not per share: no per-share dividend history is stored.
Total dividends grew 9.7% a year, FY2019 to FY2026.
Passed