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How to buy Microsoft Corporation (MSFT) shares

Learn how to easily invest in Microsoft Corporation shares.

Microsoft Corporation (MSFT) is a leading software-infrastructure business based in the US. It opened the day at USD$302.685 after a previous close of USD$301.6. During the day the price has varied from a low of USD$295.61 to a high of USD$304.08. The latest price was USD$296.03 (25 minute delay). Microsoft Corporation is listed on the NASDAQ and employs 181,000 staff. All prices are listed in US Dollars.

How to buy shares in Microsoft Corporation

  1. Compare share trading platforms. Use our comparison table to help you find a platform that fits you.
  2. Open your brokerage account. Complete an application with your details.
  3. Confirm your payment details. Fund your account.
  4. Research the stock. Find the stock by name or ticker symbol – MSFT – and research it before deciding if it's a good investment for you.
  5. Purchase now or later. Buy your desired number of shares with a market order or use a limit order to delay your purchase until the stock reaches a desired price.
  6. Check in on your investment. Optimize your portfolio by tracking your stock.

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Microsoft Corporation shares at a glance

Information last updated 2022-01-21.
Open$302.69
High$304.08
Low$295.61
Close$296.03
Previous close$301.60
Change $-5.57
Change % -1.8468%
Volume 55,120,533
Information last updated 2022-01-22.
52-week range$222.36 - $349.67
50-day moving average $328.15
200-day moving average $292.58
Wall St. target price$370.28
PE ratio 33.1167
Dividend yield $2.3 (0.84%)
Earnings per share (TTM) $8.94

Microsoft Corporation stock price (NASDAQ:MSFT)

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

Microsoft Corporation price performance over time

Historical closes compared with the close of $296.03 from 2022-01-21

1 week (2022-01-13) -2.88%
1 month (2021-12-23) -11.55%
3 months (2021-10-19) N/A
6 months (2021-07-23) 2.20%
1 year (2021-01-22) 31.02%
2 years (2020-01-23) 77.56%
3 years (2019-01-23) 177.42%
5 years (2017-01-23) 370.19%

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 33x. In other words, Microsoft Corporation shares trade at around 33x 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 2.9113. 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 $85.7 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 $176.3 billion
Operating margin TTM 42.14%
Gross profit TTM $115.9 billion
Return on assets TTM 14.59%
Return on equity TTM 49.3%
Profit margin 38.52%
Book value $20.24
Market capitalisation $2.2 trillion

TTM: trailing 12 months

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.

Microsoft Corporation share dividends

28%

Dividend payout ratio: 28.03% of net profits

Recently Microsoft Corporation has paid out, on average, around 28.03% of net profits as dividends. That has enabled analysts to estimate a "forward annual dividend yield" of 0.84% 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 0.84% return on their shares, in the form of dividend payments. In Microsoft Corporation's case, that would currently equate to about $2.3 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 March 2022. The latest dividend was paid out to all shareholders who bought their shares by 16 February 2022 (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 $222.3561 up to $349.67. A popular way to gauge a stock's volatility is its "beta".

MSFT.US volatility(beta: 0.86)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 0.8621. 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, 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.

Frequently asked questions

Disclaimer: This information should not be interpreted as an endorsement of futures, stocks, ETFs, CFDs, options or any specific provider, service or offering. It should not be relied upon as investment advice or construed as providing recommendations of any kind. Futures, stocks, ETFs and options trading involves substantial risk of loss and therefore are not appropriate for all investors. Trading CFDs and forex on leverage comes with a higher risk of losing money rapidly. Past performance is not an indication of future results. Consider your own circumstances, and obtain your own advice, before making any trades.

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