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Microsoft is a software-infrastructure business based in the US. Microsoft stocks (MSFT.US) are listed on the NASDAQ and all prices are listed in US Dollars. Its last market close was $264.6 – an increase of 4.11% over the previous week. Microsoft employs 221,000 staff and has a trailing 12-month revenue of around $204.1 billion.
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| Latest market close | $258.35 |
|---|---|
| 52-week range | $212.83 - $313.66 |
| 50-day moving average | $241.99 |
| 200-day moving average | $254.91 |
| Wall St. target price | $286.93 |
| PE ratio | 26.9678 |
| Dividend yield | $2.6 (1.12%) |
| Earnings per share (TTM) | $9.00 |
Note: The dollar amounts in the table below are in Canadian dollars.
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.
Historical closes compared with the close of $258.35 from 2023-02-03
| 1 week (2023-01-27) | 4.11% |
|---|---|
| 1 month (2023-01-05) | 16.21% |
| 3 months (2022-11-04) | 16.69% |
| 6 months (2022-08-05) | -8.68% |
| 1 year (2022-02-04) | -15.56% |
|---|---|
| 2 years (2021-02-05) | 6.67% |
| 3 years (2020-02-05) | 43.61% |
| 5 years (2018-02-02) | 181.49% |
Valuing Microsoft stock is incredibly difficult, and any metric has to be viewed as part of a bigger picture of Microsoft's overall performance. However, analysts commonly use some key metrics to help gauge the value of a stock.
Microsoft's current share price divided by its per-share earnings (EPS) over a 12-month period gives a "trailing price/earnings ratio" of roughly 27x. In other words, Microsoft shares trade at around 27x recent earnings.
That's comparable to, say, the trailing 12-month P/E ratio for the NASDAQ 100 at the end of 2019 (27.29).
Microsoft's "price/earnings-to-growth ratio" can be calculated by dividing its P/E ratio by its growth – to give 2.2748. 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'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's EBITDA (earnings before interest, taxes, depreciation and amortisation) is $97.9 billion.
The EBITDA is a measure of a Microsoft's overall financial performance and is widely used to measure a its profitability.
| Revenue TTM | $204.1 billion |
|---|---|
| Operating margin TTM | 40.97% |
| Gross profit TTM | $135.6 billion |
| Return on assets TTM | 14.83% |
| Return on equity TTM | 39.31% |
| Profit margin | 33.05% |
| Book value | $24.59 |
| Market capitalisation | $1.8 trillion |
TTM: trailing 12 months
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.
When it comes to ESG scores, lower is better, and lower scores are generally associated with lower risk for would-be investors.
Total ESG risk: 18.94
Socially conscious investors use ESG scores to screen how an investment aligns with their worldview, and Microsoft'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 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.).
Environmental score: 2.97/100
Microsoft'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 is a leader in its sector terms of its environmental impact, and exposed to a lower level of risk.
Social score: 11.87/100
Microsoft'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 is a leader in its sector when it comes to taking good care of its workforce and the communities it impacts.
Governance score: 6.59/100
Microsoft's governance score puts it squarely in the 6th percentile of companies rated in the same sector. That could suggest that Microsoft is a leader in its sector when it comes to responsible management and strategy, and exposed to a lower level of risk.
Controversy score: 3/5
ESG scores also evaluate any incidences of controversy that a company has been involved in. Microsoft scored a 3 out of 5 for controversy – a middle-of-the-table result reflecting that Microsoft hasn't always managed to keep its nose clean.
Dividend payout ratio: 28.51% of net profits
Recently Microsoft has paid out, on average, around 28.51% of net profits as dividends. That has enabled analysts to estimate a "forward annual dividend yield" of 1.12% of the current stock value. This means that over a year, based on recent payouts (which are sadly no guarantee of future payouts), Microsoft shareholders could enjoy a 1.12% return on their shares, in the form of dividend payments. In Microsoft's case, that would currently equate to about $2.6 per share.
While Microsoft's payout ratio might seem fairly standard, it's worth remembering that Microsoft may be investing much of the rest of its net profits in future growth.
Microsoft's most recent dividend payout was on 9 March 2023. The latest dividend was paid out to all shareholders who bought their shares by 15 February 2023 (the "ex-dividend date").
Microsoft'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 shares – just the quantity. However, indirectly, the new 50% lower share price could have impacted the market appetite for Microsoft shares which in turn could have impacted Microsoft's share price.
Over the last 12 months, Microsoft's shares have ranged in value from as little as $212.8312 up to $313.6642. A popular way to gauge a stock's volatility is its "beta".
Beta is a measure of a share's volatility in relation to the market. The market (NASDAQ average) beta is 1, while Microsoft's is 0.9264. This would suggest that Microsoft's shares are less volatile than average (for this exchange).
Microsoft Corporation develops, licenses, and supports software, services, devices, and solutions worldwide. The company operates in three segments: Productivity and Business Processes, Intelligent Cloud, and More Personal Computing. The Productivity and Business Processes segment offers Office, Exchange, SharePoint, Microsoft Teams, Office 365 Security and Compliance, Microsoft Viva, and Skype for Business; Skype, Outlook. com, OneDrive, and LinkedIn; and Dynamics 365, a set of cloud-based and on-premises business solutions for organizations and enterprise divisions. The Intelligent Cloud segment licenses SQL, Windows Servers, Visual Studio, System Center, and related Client Access Licenses; GitHub that provides a collaboration platform and code hosting service for developers; Nuance provides healthcare and enterprise AI solutions; and Azure, a cloud platform. It also offers enterprise support, Microsoft consulting, and nuance professional services to assist customers in developing, deploying, and managing Microsoft server and desktop solutions; and training and certification on Microsoft products. The 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; and Windows Internet of Things.
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