Microsoft Corporation

MSFT: NasdaqGS
50Total

Lowest reading is at 11 out of 100. All scores are out of 100.

About The Company

CEO

Mr. Satya Nadella

Market Cap

3.83 Trillion USD

Sector

Technology

Website

https://www.microsoft.com

Last Update

26/09/2026, 10:14:54

Description

Microsoft Corporation, a technology company, develops and supports a portfolio of technology solutions for individuals and businesses worldwide.

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Strongest readings

  • ✔Return on capital employed of 26.33% is above the market average of 10.00%
  • ✔Altman-Z score of 9.06 sits above the distress range
  • ✔Dividend growth averages 9.88% per year
  • ✔Debt is low at 0.09 times equity
  • ✔Financial health is strong (health score 81 out of 100)

Weakest readings

  • ✘Revenue is growing at 15.67% per year while free cashflow is falling
  • ✘Priced well above the cashflow it produces (value score 11 out of 100)
  • ✘The current price sits above estimated fair value (margin of safety -88.46%)
  • ✘Returns on capital have declined over five years (3.10% lower)
  • ✘Price-to-earnings of 28.7 is above the market average of 19.6

Key Figures

StatusMetricValueReadingMarket avg
✘
Price / earnings (TTM)
28.68x
19.60x
✘
Margin of safety (DCF)
-88.46%
17.95%
✔
Revenue growth (5y average)
15.67%
10.97%
✘
Dividend yield (TTM)
0.69%
1.85%
✔
Share count, per year
-0.31%
0.00%
✔Return on capital employed26.33%
10.00%

The bar shows how good a reading is, so a longer bar is always better. The tick marks the benchmark.

Valuation

11 / 100

Priced above the market on most measures.

StatusMetricValueReadingMarket avg
✘
Price / earnings
28.68x
19.60x
✘Free cashflow yield1.75%
4.70%
✔Price / earnings growth0.91x
1.50x
Price / book8.67x
—
✘
Margin of safety
-88.46%
17.95%

The bar shows how good a reading is, so a longer bar is always better. The tick marks the benchmark.

  • ✘Estimated intrinsic value of 59.58 USD is below the current price of 516.17 USD

Desired Margin Of Safety

0%

▼

Tip: Set your desired Margin Of Safety

Free Cash Flow Type

Annual Cashflow Growth

0%

Discount Rate

0%

Estimated Fair Value: 215.1 USD ✘

Current Price: 516.4 USD

How Does This Work?

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This calculator helps investors estimate the Intrinsic Value of a company based on the current value of future cash flows. To use the tool, simply input a desired Margin Of Safety, which is an additional discount applied to the present value of the expected future cash flows. The tool calculates the present value using a discount rate that reflects the risk and time value of money, and provides an estimated fair value for the company based on the selected margin of safety. The calculator defaults to using 5 Year Free Cash Flow Growth % and a discount rate based on the US 10-year treasury bond coupon rate. Use our performance analyser to get a feel for the impact this has on longterm investment returns and find a margin of safety you are comfortable with.

Growth

48 / 100

Growing more slowly than the market on most measures.

StatusMetricValueReadingMarket avg
✔
Revenue growth
15.67%
10.97%
✔Earnings growth19.46%
14.48%
✘Cashflow growth-3.32%
12.35%

The bar shows how good a reading is, so a longer bar is always better. The tick marks the benchmark.

  • ✔Revenue growth has improved this year (17.79% against a five year average of 15.67%)
  • ✔Earnings growth has improved this year (31.48% against a five year average of 19.46%)
  • ✘Free cashflow growth has slowed this year
  • ✘Revenue is growing at 15.67% per year while free cashflow is falling at 3.32% per year

Health

81 / 100

Balance sheet covers its obligations.

Measured on Leverage and capital, Funding and liquidity, Earnings quality.

StatusMetricValueReadingThreshold
✔Altman-Z score9.06
3.00
✔Piotroski score6.00
5.00
✔Debt / equity0.09x
0.80x
✔Current ratio1.23x
1.00x
✔Interest coverage50.88x
2.50x
✔Free cashflow / debt1.66x
0.15x
✔Debt / capital0.08x
1.00x

The bar shows how good a reading is, so a longer bar is always better. The tick marks the benchmark.

    Dividend

    72 / 100

    Covered by both earnings and cashflow.

    StatusMetricValueReadingMarket avg
    ✘
    Dividend yield
    0.69%
    1.85%
    ✔Dividend growth9.81%
    0.00%
    ✔Payout ratio (earnings)19.77%
    40.00%
    ✔Payout ratio (cashflow)39.48%
    65.00%
    ✔Worst year, last 5 years9.87%
    -2.00%

    The bar shows how good a reading is, so a longer bar is always better. The tick marks the benchmark.

    • ✘Dividend growth has been slowing recently

    Management

    58 / 100

    Returns on capital are at or above the market.

    StatusMetricValueReadingMarket avg
    ✔Return on equity30.23%
    15.00%
    ✔Return on capital employed26.33%
    10.00%
    Return on assets17.64%
    —
    Free cashflow return on capital11.36%
    —
    ✘Return on capital, 5y change-3.10%
    0.00%
    ✔
    Share count, per year
    -0.31%
    0.00%
    ✔Share count, recent-0.05%
    0.00%
    ✘Realized buyback return-56.56%
    0.00%
    ✔Goodwill erosion / equity0.00%
    2.00%
    Price volatility, 5 year28.09%
    —

    The bar shows how good a reading is, so a longer bar is always better. The tick marks the benchmark.

    • ✘Shares were repurchased while the value score was only 11 out of 100

    Analysts

    not enough data
    StatusMetricValueReadingNeutral
    Analyst opinion scoreN/A50

    The bar shows how good a reading is, so a longer bar is always better. The tick marks the benchmark.

    Financial History

    Annual figures across the full reporting history we hold.

    Market Peers

    MSFT

    SEC Filings

    Find yearly (10-K), quaterly (10-Q) and disclosure (8-K) report here, on the Securities and Exchange Commission's EDGAR database. If reading through reports isn't your cup of tea, don't worry. We've made it easy for you by summarizing all the important bits.

    See 35+ Years Annual Reports

    Other Information

    Company Name

    Microsoft Corporation

    Currency

    USD

    Beta

    1.108

    Vol Avg

    29973890

    Ceo

    Mr. Satya Nadella

    Cik

    0000789019

    Cusip

    Exchange

    NasdaqGS

    Full Time Employees

    223000

    Industry

    Software - Infrastructure

    Sector

    Technology

    Ipo Date

    Address

    One Microsoft Way

    City

    Redmond

    State

    WA

    Country

    United States

    Zip

    98052-6399

    Phone

    425 882 8080

    Analysis Last Updated

    26/09/2026, 10:14:54

    Financial data compiled from SEC EDGAR filings and Yahoo Finance.

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