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How to buy Microsoft Corporation stock | 219.66

Own Microsoft Corporation stock in just a few minutes.

Fact checked

Microsoft Corporation is a software—infrastructure business based in the US. Microsoft Corporation shares (MSFT) are listed on the NASDAQ and all prices are listed in US Dollars. Microsoft Corporation employs 163,000 staff and has a trailing 12-month revenue of around USD$147.1 billion.

How to buy shares in Microsoft Corporation

  1. Compare share trading platforms. If you're a beginner, look for a platform with low commissions, expert ratings and investment tools to track your portfolio. Narrow down top brands with our comparison table.
  2. Open and fund your brokerage account. Complete an application with your personal and financial details, like your ID and bank information. Fund your account with a bank transfer, credit card or debit card.
  3. Search for Microsoft Corporation. Find the stock by name or ticker symbol: MSFT. Research its history to confirm it's a solid investment against your financial goals.
  4. Purchase now or later. Buy today with a market order or use a limit order to delay your purchase until Microsoft Corporation reaches your desired price. To spread out your purchase, look into dollar-cost averaging, which smooths out buying at consistent intervals and amounts.
  5. Decide on how many to buy. At last close price of USD$219.66, weigh your budget against a diversified portfolio that can minimize risk through the market's ups and downs. You may be able to buy a fractional share of Microsoft Corporation, depending on your broker.
  6. Check in on your investment. Congratulations, you own a part of Microsoft Corporation. Optimize your portfolio by tracking how your stock — and even the business — performs with an eye on the long term. You may be eligible for dividends and shareholder voting rights on directors and management that can affect your stock.

How has coronavirus impacted Microsoft Corporation's share price?

Since the stock market crash in March caused by coronavirus, Microsoft Corporation's share price has had significant positive movement.

Its last market close was USD$219.66, which is 18.70% up on its pre-crash value of USD$178.59 and 65.76% up on the lowest point reached during the March crash when the shares fell as low as USD$132.52.

If you had bought USD$1,000 worth of Microsoft Corporation shares at the start of February 2020, those shares would have been worth USD$779.17 at the bottom of the March crash, and if you held on to them, then as of the last market close they'd be worth USD$1,258.65.

Microsoft Corporation share price

Use our graph to track the performance of MSFT stocks over time.

Microsoft Corporation shares at a glance

Information last updated 2020-11-24.
Latest market close USD$219.66
52-week range USD$131.489 - USD$232.2519
50-day moving average USD$213.6303
200-day moving average USD$205.3051
Wall St. target price USD$239.71
PE ratio 33.9339
Dividend yield USD$2.24 (1.07%)
Earnings per share (TTM) USD$6.199

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The value of any investment can go up or down depending on news, trends and market conditions. We are not investment advisers, so do your own due diligence to understand the risks before you invest.

Is it a good time to buy Microsoft Corporation stock?

The technical analysis gauge below displays real-time ratings for the timeframes you select. This is not a recommendation, however. It represents a technical analysis based on the most popular technical indicators: Moving Averages, Oscillators and Pivots. Finder might not concur and takes no responsibility.

This chart is not advice or a guarantee of success. Rather, it gauges the real-time recommendations of three popular technical indicators: moving averages, oscillators and pivots. Finder is not responsible for how your stock performs.

Microsoft Corporation price performance over time

Historical closes compared with the close of $219.66 from 2020-10-16

1 week (2020-11-19) 3.41%
1 month (2020-10-29) 7.30%
3 months (2020-08-28) -4.04%
6 months (2020-05-29) 19.87%
1 year (2019-11-29) 45.11%
2 years (2018-11-29) 99.35%
3 years (2017-11-29) 163.57%
5 years (2015-11-27) 307.31%

Is Microsoft Corporation under- or over-valued?

Valuing Microsoft Corporation stock is incredibly difficult, and any metric has to be viewed as part of a bigger picture of Microsoft Corporation's overall performance. However, analysts commonly use some key metrics to help gauge the value of a stock.

Microsoft Corporation's P/E ratio

Microsoft Corporation's current share price divided by its per-share earnings (EPS) over a 12-month period gives a "trailing price/earnings ratio" of roughly 34x. In other words, Microsoft Corporation shares trade at around 34x recent earnings.

That's relatively high compared to, say, the trailing 12-month P/E ratio for the NASDAQ 100 at the end of 2019 (27.29). The high P/E ratio could mean that investors are optimistic about the outlook for the shares or simply that they're over-valued.

Microsoft Corporation's PEG ratio

Microsoft Corporation's "price/earnings-to-growth ratio" can be calculated by dividing its P/E ratio by its growth – to give 2.4622. A low ratio can be interpreted as meaning the shares offer better value, while a higher ratio can be interpreted as meaning the shares offer worse value.

The PEG ratio provides a broader view than just the P/E ratio, as it gives more insight into Microsoft Corporation's future profitability. By accounting for growth, it could also help you if you're comparing the share prices of multiple high-growth companies.

Microsoft Corporation's EBITDA

Microsoft Corporation's EBITDA (earnings before interest, taxes, depreciation and amortisation) is USD$68.1 billion.

The EBITDA is a measure of a Microsoft Corporation's overall financial performance and is widely used to measure a its profitability.

Microsoft Corporation financials

Revenue TTM USD$147.1 billion
Operating margin TTM 38.17%
Gross profit TTM USD$96.9 billion
Return on assets TTM 12.1%
Return on equity TTM 41.4%
Profit margin 32.29%
Book value $16.313
Market capitalisation USD$1.6 trillion

TTM: trailing 12 months

Shorting Microsoft Corporation shares

There are currently 36.8 million Microsoft Corporation shares held short by investors – that's known as Microsoft Corporation's "short interest". This figure is 5% up from 35.0 million last month.

There are a few different ways that this level of interest in shorting Microsoft Corporation shares can be evaluated.

Microsoft Corporation's "short interest ratio" (SIR)

Microsoft Corporation's "short interest ratio" (SIR) is the quantity of Microsoft Corporation shares currently shorted divided by the average quantity of Microsoft Corporation shares traded daily (recently around 29.0 million). Microsoft Corporation's SIR currently stands at 1.27. In other words for every 100,000 Microsoft Corporation shares traded daily on the market, roughly 1270 shares are currently held short.

However Microsoft Corporation's short interest can also be evaluated against the total number of Microsoft Corporation shares, or, against the total number of tradable Microsoft Corporation shares (the shares that aren't held by "insiders" or major long-term shareholders – also known as the "float"). In this case Microsoft Corporation's short interest could be expressed as 0% of the outstanding shares (for every 100,000 Microsoft Corporation shares in existence, roughly 0 shares are currently held short) or 0.0049% of the tradable shares (for every 100,000 tradable Microsoft Corporation shares, roughly 5 shares are currently held short).

Such a low SIR usually points to an optimistic outlook for the share price, with fewer people currently willing to bet against Microsoft Corporation.

Find out more about how you can short Microsoft Corporation stock.

Microsoft Corporation's environmental, social and governance track record

Environmental, social and governance (known as ESG) criteria are a set of three factors used to measure the sustainability and social impact of companies like Microsoft Corporation.

When it comes to ESG scores, lower is better, and lower scores are generally associated with lower risk for would-be investors.

Microsoft Corporation's total ESG risk score

Total ESG risk: 18.94

Socially conscious investors use ESG scores to screen how an investment aligns with their worldview, and Microsoft Corporation's overall score of 18.94 (as at 01/01/2019) is excellent – landing it in it in the 11st percentile of companies rated in the same sector.

ESG scores are increasingly used to estimate the level of risk a company like Microsoft Corporation is exposed to within the areas of "environmental" (carbon footprint, resource use etc.), "social" (health and safety, human rights etc.), and "governance" (anti-corruption, tax transparency etc.).

Microsoft Corporation's environmental score

Environmental score: 2.97/100

Microsoft Corporation's environmental score of 2.97 puts it squarely in the 6th percentile of companies rated in the same sector. This could suggest that Microsoft Corporation is a leader in its sector terms of its environmental impact, and exposed to a lower level of risk.

Microsoft Corporation's social score

Social score: 11.87/100

Microsoft Corporation's social score of 11.87 puts it squarely in the 6th percentile of companies rated in the same sector. This could suggest that Microsoft Corporation is a leader in its sector when it comes to taking good care of its workforce and the communities it impacts.

Microsoft Corporation's governance score

Governance score: 6.59/100

Microsoft Corporation's governance score puts it squarely in the 6th percentile of companies rated in the same sector. That could suggest that Microsoft Corporation is a leader in its sector when it comes to responsible management and strategy, and exposed to a lower level of risk.

Microsoft Corporation's controversy score

Controversy score: 3/5

ESG scores also evaluate any incidences of controversy that a company has been involved in. Microsoft Corporation scored a 3 out of 5 for controversy – a middle-of-the-table result reflecting that Microsoft Corporation hasn't always managed to keep its nose clean.

Environmental, social, and governance (ESG) summary

Microsoft Corporation was last rated for ESG on: 2019-01-01.

Total ESG score 18.94
Total ESG percentile 11.18
Environmental score 2.97
Environmental score percentile 6
Social score 11.87
Social score percentile 6
Governance score 6.59
Governance score percentile 6
Level of controversy 3

Microsoft Corporation share dividends

34%

Dividend payout ratio: 33.76% of net profits

Recently Microsoft Corporation has paid out, on average, around 33.76% of net profits as dividends. That has enabled analysts to estimate a "forward annual dividend yield" of 1.07% of the current stock value. This means that over a year, based on recent payouts (which are sadly no guarantee of future payouts), Microsoft Corporation shareholders could enjoy a 1.07% return on their shares, in the form of dividend payments. In Microsoft Corporation's case, that would currently equate to about $2.24 per share.

While Microsoft Corporation's payout ratio might seem fairly standard, it's worth remembering that Microsoft Corporation may be investing much of the rest of its net profits in future growth.

Microsoft Corporation's most recent dividend payout was on 10 December 2020. The latest dividend was paid out to all shareholders who bought their shares by 18 November 2020 (the "ex-dividend date").

Have Microsoft Corporation's shares ever split?

Microsoft Corporation's shares were split on a 2:1 basis on 18 February 2003. So if you had owned 1 share the day before before the split, the next day you'd have owned 2 shares. This wouldn't directly have changed the overall worth of your Microsoft Corporation shares – just the quantity. However, indirectly, the new 50% lower share price could have impacted the market appetite for Microsoft Corporation shares which in turn could have impacted Microsoft Corporation's share price.

Microsoft Corporation share price volatility

Over the last 12 months, Microsoft Corporation's shares have ranged in value from as little as $131.489 up to $232.2519. A popular way to gauge a stock's volatility is its "beta".

MSFT.US volatility(beta: 0.87)Avg. volatility(beta: 1.00)LowHigh

Beta is a measure of a share's volatility in relation to the market. The market (NASDAQ average) beta is 1, while Microsoft Corporation's is 0.8681. This would suggest that Microsoft Corporation's shares are less volatile than average (for this exchange).

Microsoft Corporation overview

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, and OneDrive; LinkedIn that includes Talent, Learning, Sales, and Marketing solutions, as well as premium subscriptions; and Dynamics 365, a set of cloud-based and on-premises business solutions for small and medium businesses, large organizations, and divisions of enterprises. Its Intelligent Cloud segment licenses SQL and 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 to developers and IT professionals on various 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 intelligent 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. The company was founded in 1975 and is headquartered in Redmond, Washington.

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