Microsoft CorporationMSFT
NMS • Technology
$390.49
P/E
23.17
PEG
1.00
FCF Yield
2.5%
Rev Growth YoY
+18.3% YoY
Gross Margin
67.6%
Health Score
9/10
D/E Ratio
0.10
Confidence
MEDIUM
Business Snapshot
Microsoft Corporation is a dominant player in the software-infrastructure industry, generating revenue primarily from cloud services (Azure), productivity software (Office 365, LinkedIn), and operating systems (Windows). As a large-cap company with a market capitalisation of $2.90 trillion, it possesses an unparalleled scale and installed base across enterprise and consumer markets. Its TTM revenue of $318.27 billion underscores its position as one of the world's largest technology companies. A defining characteristic is its powerful ecosystem and recurring subscription revenue model, which creates significant customer switching costs and provides a durable competitive moat.
Financial Health
Microsoft's financial health is robust, anchored by a gross margin of 67.6% and a net margin of 39.3%, though the gross margin has slightly slipped from 68.0% in the prior year. The balance sheet is fortress-like, with a minimal debt-to-equity ratio of 0.1x and a current ratio of 1.28x, indicating ample liquidity and very low leverage...
Risk Assessment
- TECHNICALS — Price of $390.49 is below its 200-day moving average of $445.44, and the 50-day MA of $407.60 has crossed below the 200-day, forming a "death cross" that signals an established downtrend.
- 52-WEEK POSITION — The current price of $390.49 is 29.7% below the 52-week high of $555.45 and well below the midpoint of the yearly range of $452.33, indicating significant downward momentum from recent highs.
- DCF VALUATION — The current price of $390.49 represents a 28.1% premium to the Python-derived DCF estimate of $304.80, suggesting the stock may be pricing in an optimistic growth scenario relative to a conservative intrinsic value calculation.
- VALUATION — While the P/E of 23.17x is below the sector average of 35x, the Price/Sales ratio of 9.11x remains elevated, reflecting rich expectations for future revenue growth....
Microsoft's financial health is robust, anchored by a gross margin of 67.6% and a net margin of 39.3%, though the gross margin has slightly slipped from 68.0% in the prior year. The balance sheet is fortress-like, with a minimal debt-to-equity ratio of 0.1x and a current ratio of 1.28x, indicating ample liquidity and very low leverage. The company generates prodigious free cash flow of $71.61 billion, translating to a free cash flow yield of 2.5%. This extraordinary cash generation provides immense capacity for reinvestment in the business, strategic acquisitions, and returning capital to shareholders through dividends and buybacks.
- TECHNICALS — Price of $390.49 is below its 200-day moving average of $445.44, and the 50-day MA of $407.60 has crossed below the 200-day, forming a "death cross" that signals an established downtrend. - 52-WEEK POSITION — The current price of $390.49 is 29.7% below the 52-week high of $555.45 and well below the midpoint of the yearly range of $452.33, indicating significant downward momentum from recent highs. - DCF VALUATION — The current price of $390.49 represents a 28.1% premium to the Python-derived DCF estimate of $304.80, suggesting the stock may be pricing in an optimistic growth scenario relative to a conservative intrinsic value calculation. - VALUATION — While the P/E of 23.17x is below the sector average of 35x, the Price/Sales ratio of 9.11x remains elevated, reflecting rich expectations for future revenue growth.
Unlock the full AI report
Full 8-section analysis includes:
Metric deep-dives