STOCKROUTINES

Microsoft Corporation

Last Updated
Share Price
$274.03
Market Cap
$2.05T
Dividend Yield
N/A
EPS
$9.39
P/E
29.19

Microsoft Corporation develops, licenses, and supports software, services, devices, and solutions worldwide. Its Productivity and Business Processes segment offers Office, Exchange, SharePoint, Microsoft Teams, Office 365 Security and Compliance, and Skype for Business, as well as related Client Access Licenses (CAL); Skype, Outlook.com, OneDrive, and LinkedIn; and Dynamics 365, a set of cloud-based and on-premises business solutions for organizations and enterprise divisions. Its Intelligent Cloud segment licenses SQL, Windows Servers, Visual Studio, System Center, and related CALs; GitHub that provides a collaboration platform and code hosting service for developers; and Azure, a cloud platform. It also offers support services and Microsoft consulting services to assist customers in developing, deploying, and managing Microsoft server and desktop solutions; and training and certification on Microsoft products. Its More Personal Computing segment provides Windows original equipment manufacturer (OEM) licensing and other non-volume licensing of the Windows operating system; Windows Commercial, such as volume licensing of the Windows operating system, Windows cloud services, and other Windows commercial offerings; patent licensing; Windows Internet of Things; and MSN advertising. It also offers Surface, PC accessories, PCs, tablets, gaming and entertainment consoles, and other devices; Gaming, including Xbox hardware, and Xbox content and services; video games and third-party video game royalties; and Search, including Bing and Microsoft advertising. It sells its products through OEMs, distributors, and resellers; and directly through digital marketplaces, online stores, and retail stores. It has collaborations with Dynatrace, Inc., Morgan Stanley, Micro Focus, WPP plc, ACI Worldwide, Inc., and iCIMS, Inc., as well as strategic relationships with Avaya Holdings Corp. and wejo Limited. Microsoft Corporation was founded in 1975 and is based in Redmond, Washington.

0%
Income
  • Revenue $168.09B
  • Gross Profit $115.86B
  • Net Income $61.27B
  • Gross Margin 68.93%
  • Net Margin 36.45%
Cash Flow
  • Free Cash Flow (FCF) $56.12B
  • Free Cash Flow To Equity (FCFE) $52.37B
  • Dividends Paid $-16.52B
  • Debt Repayment $-3.75B
  • Net Stock Repurchased $25.69B
Balance Sheet
  • Shareholder Equity $141.99B
  • Debt To Equity (D/E) 135.08%
  • Book Value $141.99B
  • Book Value Per Share (BVPS) $0
  • Return On Invested Capital (ROIC) 31.96%
The financial metrics for Microsoft Corporation presented below are for the financial year 2021.
P/E 33.37 Price To Earnings Ratio
P/S 12.16 Price To Sales Ratio
P/B 14.4 Price To Book Ratio
P/CF 26.64 Price To Operating Cash Flow Ratio
P/FCF 36.43 Price To Free Cash Flow Ratio
P/FCFE 39.04 Price To Levered Free Cash Flow Ratio
P/EBT 28.75 Price To Pre-Tax Income
PEG 1 Trailing Price/Earnings To Growth Ratio
EV/Sales 12.5 Enterprise Value To Sales Ratio
EBIT/EV 0.03 EBIT To Enterprise Value Ratio
EV/EBITDA 24.67 Enterprise Value to EBITDA Ratio
D/E 1.35 Debt To Equity Ratio
ROE 47.08% Return On Equity
ROIC 31.96% Return On Invested Capital
DPR 26.96% Dividend Payout Ratio
Current Ratio 2.08 Current Liquidity Ratio
EPS Growth 33.21% Earnings Per Share Growth Rate
Graham Number $58.63 Benjamin Graham's Number
Piotroski Score N/A Piotroski F-Score
Beta N/A Beta Coefficient Value
    2021 2020 2019 2018 2017
Revenue $168.09B$143.01B$125.84B$110.36B$89.95B
Cost of Revenue $52.23B$46.08B$42.91B$38.35B$34.26B
Gross Profit $115.86B$96.94B$82.93B$72.01B$55.69B
Gross Profit Margin 68.93%67.78%65.9%65.25%61.91%
Operating Expenses $45.94B$43.98B$39.97B$36.95B$33.06B
Research & Development Expenses (R&D) $20.72B$19.27B$16.88B$14.73B$13.04B
Selling, General & Administrative Expenses (SG&A) $25.22B$24.71B$23.1B$22.22B$20.02B
Other Expenses $0$0$0$0$0
Net Income $61.27B$44.28B$39.24B$16.57B$21.2B
Net Profit Margin 36.45%30.96%31.18%15.02%23.57%
Operating Income $69.92B$52.96B$42.96B$35.06B$22.33B
Other Income & Expenses (Net) $1.19B$77M$729M$1.42B$823M
Depreciation & Amortization $11.69B$12.8B$11.68B$10.26B$8.78B
Interest Income $2.13B$2.68B$2.76B$0$0
Interest Expense $2.35B$2.59B$2.69B$2.73B$2.22B
Income Tax Expense $9.83B$8.76B$4.45B$19.9B$1.95B
Effective Tax Rate 13.83%16.51%10.18%54.57%8.4%
EBITDA $85.13B$68.42B$58.06B$49.47B$34.15B
EBIT $73.45B$55.63B$46.37B$39.21B$25.37B
EBT N/AN/AN/AN/AN/A
Shares Outstanding 7.55B7.61B7.67B7.7B7.75B
Diluted Shares Outstanding 7.61B7.68B7.75B7.79B7.83B
EPS $8.12$5.82$5.11$2.15$2.74
Diluted EPS $8.05$5.76$5.06$2.13$2.71
    2021 2020 2019 2018 2017
Operating Cash Flow $76.74B$60.67B$52.19B$43.88B$39.51B
Net Income $61.27B$44.28B$39.24B$16.57B$21.2B
Depreciation & Amortization $11.69B$12.8B$11.68B$10.26B$8.78B
Deferred Income Tax $-150M$-3.62B$-3.53B$13.04B$-3.3B
Stock-Based Compensation $6.12B$5.29B$4.65B$3.94B$3.27B
Change In Working Capital $-13.86B$3.47B$-5.04B$15.85B$15.02B
Other Non-Cash Items $11.67B$-1.54B$5.19B$-15.78B$-5.47B
Cash From Investing $-27.58B$-12.22B$-15.77B$-6.06B$-46.78B
Purchases Of Investments $-62.92B$-77.19B$-57.7B$-137.38B$-176.91B
Sales / Maturities of Investments $65.8B$84.17B$58.24B$143.94B$164.39B
Property, Plant & Equipment Investments $-20.62B$-15.44B$-13.93B$-11.63B$-8.13B
Net Acquisitions $-8.91B$-2.52B$-2.39B$-888M$-25.94B
Other Investing Activites $-922M$-1.24B$0$-98M$-197M
Cash From Financing $-48.49B$-46.03B$-36.89B$-33.59B$8.41B
Debt Repayment $-3.75B$-5.52B$-4B$-10.06B$-7.92B
Dividend Payments $-16.52B$-15.14B$-13.81B$-12.7B$-11.85B
Payout Ratio 26.96%34.18%35.2%76.63%55.86%
Net Common Stock Repurchased $25.69B$21.63B$18.4B$9.72B$11.02B
Common Stock Repurchased $-27.39B$-22.97B$-19.54B$-10.72B$-11.79B
Common Stock Issued $25.69B$21.63B$18.4B$9.72B$11.02B
Other Financing Activites $-2.52B$-3.75B$-675M$-1.11B$39.19B
Accounts Receivables $-6.48B$-2.58B$-2.81B$-3.86B$-925M
Accounts Payables $2.8B$3.02B$232M$1.15B$81M
Inventory $-737M$168M$597M$-465M$50M
Other Working Capital $95.75B$109.61B$106.13B$111.17B$95.32B
Capital Expenditure (CAPEX) $-20.62B$-15.44B$-13.93B$-11.63B$-8.13B
Effect Of Foreign Exchange On Cash $-29M$-201M$-115M$50M$19M
Net Change In Cash $648M$2.22B$-590M$4.28B$1.15B
Free Cash Flow (FCF) $56.12B$45.23B$38.26B$32.25B$31.38B
Free Cash Flow To Equity (FCFE) $52.37B$39.72B$34.26B$22.19B$23.46B
    2021 2020 2019 2018 2017
Total Assets $333.78B$301.31B$286.56B$258.85B$241.09B
Total Current Assets $184.41B$181.91B$175.55B$169.66B$159.85B
Cash & Short-Term Investments $130.33B$136.53B$133.82B$133.77B$132.98B
Cash & Cash Equivalents $11.75B$13.58B$11.36B$11.95B$7.66B
Short-Term Investments $118.59B$122.95B$122.46B$121.82B$125.32B
Net Receivables $38.04B$32.01B$29.52B$26.48B$19.79B
Inventory $2.64B$1.9B$2.06B$2.66B$2.18B
Other Current Assets $13.39B$11.48B$10.15B$6.75B$4.9B
Total Non-Current Assets $149.37B$119.4B$111B$89.19B$81.23B
Property, Plant & Equipment (PP&E) $70.8B$52.9B$43.86B$36.15B$23.73B
Goodwill & Intangible Assets $57.51B$50.39B$49.78B$43.74B$45.23B
Goodwill $49.71B$43.35B$42.03B$35.68B$35.12B
Intangible Assets $7.8B$7.04B$7.75B$8.05B$10.11B
Long-Term Investments $5.98B$2.96B$2.65B$1.86B$6.02B
Other Non-Current Assets $15.07B$13.14B$14.72B$7.44B$6.25B
Other Assets $0$0$0$0$0
Total Liabilities $191.79B$183.01B$184.23B$176.13B$168.69B
Total Current Liabilities $88.66B$72.31B$69.42B$58.49B$64.53B
Accounts Payables $15.16B$12.53B$9.38B$8.62B$7.39B
Short-Term Debt $8.07B$3.75B$5.52B$4B$10.12B
Deferred Revenue $41.52B$36B$32.68B$28.91B$34.1B
Other Current Liabilities $23.9B$20.03B$21.85B$16.97B$12.91B
Total Non-Current Liabilities $103.13B$110.7B$114.81B$117.64B$104.17B
Long-Term Debt $59.7B$67.25B$72.85B$77.81B$76.07B
Other Non-Current Liabilities $40.62B$40.06B$37.19B$35.48B$17.18B
Total Debt $67.78B$71B$78.37B$81.81B$86.19B
Total Shareholder Equity $141.99B$118.3B$102.33B$82.72B$72.39B
Common Stock $83.11B$80.55B$78.52B$71.22B$69.31B
Retained Earnings $57.05B$34.57B$24.15B$13.68B$2.65B
Accumulated Other Comprehensive Income Loss (AOCL) $1.82B$3.19B$-340M$-2.19B$431M
Other Shareholder Equity $0$0$0$0$0
Total Investments $124.57B$125.92B$125.11B$123.68B$131.34B
Net Debt $56.03B$57.42B$67.01B$69.86B$78.53B
Book Value $141.99B$118.3B$102.33B$82.72B$72.39B

Discounted Cash Flow

Use the Discounted Cash Flow (DCF) tool to estimate the intrinsic value of Microsoft Corporation stock.

Assumptions
Forecast Period
Required Return
  Low Mid High
Revenue Growth
FCFE Margin
Perpetual Growth
Terminal P/FCFE
Assumptions

The number of assumptions to make for each forecast.

Forecast Period

The number of years to forecast future cash flows. These future cash flows are used to determine the intrinsic present value for the stock.

It is generally recommended to select a longer period for more established companies with stable financial histories.

Forecast Period

The compounding annual rate of return required, according to your investment objectives. This is used to discount back future cash flows.

Revenue Growth

Estimate the annual compounding revenue growth rate. You can use the historical compounding annual growth rates provided below as a guide.

  • 1 Year 16.11%
  • 3 Years 13.89%
  • 5 Years 15.09%
  • 10 Years 15.09%
Levered Free Cash Flow Margin

Estimate levered free cash flow (FCFE) as a percentage of revenue. You can use the historical margins provided below as a guide.

  • 1 Year 31.16%
  • 3 Years 28.72%
  • 5 Years 26.47%
  • 10 Years 26.47%
Perpetual Growth Rate

Estimate the compounding annual growth rate at which revenues will grow in perpetuity after the forecast period. This is the first method used to calculate the terminal value.

Values of between 2% and 5% are generally recommended.

Price To Levered Free Cash Flow

Estimate the price to levered free cash flow (P/FCFE) for the stock after the forecast period. This is the second method used to calculate the terminal value.

This method for calculating the terminal value can be preferred for shorter forecast periods. You can use the historical rations provided below as a guide.

  • 1 Year 39.04
  • 3 Years 36.14
  • 5 Years 33.18
  • 10 Years 33.18
Chief Executive Officer (CEO) Mr. Satya Nadella
Full-Time Employees 181K
Industry Software—Infrastructure
Sector Technology
Country US
Website https://www.microsoft.com

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