Microsoft Valuation
| MSFT Stock | USD 415.57 0.00 0.00% |
At this time, the firm appears to be overvalued. Microsoft secures a last-minute Real Value of $355.81 per share. The latest price of the firm is $415.57. Our model forecasts the value of Microsoft from analyzing the firm fundamentals such as Current Valuation of 1.78 T, profit margin of 0.33 %, and Return On Equity of 0.39 as well as examining its technical indicators and probability of bankruptcy.
Overvalued
Today
Please note that Microsoft's price fluctuation is very steady at this time. Calculation of the real value of Microsoft is based on 3 months time horizon. Increasing Microsoft's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Since Microsoft is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Microsoft Stock. However, Microsoft's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value. | Historical | Market 415.57 | Real 355.81 | Hype 415.57 | Naive 443.07 |
The intrinsic value of Microsoft's stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence Microsoft's stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
Estimating the potential upside or downside of Microsoft helps investors to forecast how Microsoft stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Microsoft more accurately as focusing exclusively on Microsoft's fundamentals will not take into account other important factors: Microsoft Total Value Analysis
Microsoft is now estimated to have takeover price of 1.78 T with market capitalization of 2.01 T, debt of 47.03 B, and cash on hands of 133.82 B. Please note that takeover price may be misleading and is a subject to mistakes in financial statements. We encourage investors to thoroughly investigate all of the Microsoft fundamentals before making investing decisions based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
1.78 T | 2.01 T | 47.03 B | 133.82 B |
Microsoft Investor Information
About 74.0% of the company shares are owned by institutional investors. The company has Price/Earnings To Growth (PEG) ratio of 2.03. Microsoft recorded earning per share (EPS) of 9.0. The entity last dividend was issued on the 15th of February 2023. Based on the key indicators related to Microsoft's liquidity, profitability, solvency, and operating efficiency, Microsoft is not in a good financial situation at the moment. It has a very high risk of going through financial straits in December.Microsoft Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Microsoft has an asset utilization ratio of 54.34 percent. This suggests that the Company is making $0.54 for each dollar of assets. An increasing asset utilization means that Microsoft is more efficient with each dollar of assets it utilizes for everyday operations.Microsoft Ownership Allocation
Microsoft maintains a total of 7.44 Billion outstanding shares. The majority of Microsoft outstanding shares are owned by institutional investors. These third-party entities are usually referred to as non-private investors looking to shop for positions in Microsoft to benefit from reduced commissions. Consequently, institutional holders are subject to a different set of regulations than regular investors in Microsoft. Please pay attention to any change in the institutional holdings of Microsoft as this could imply that something significant has changed or is about to change at the company. Please note that no matter how many assets the company has, if the real value of the firm is less than the current market value, you may not be able to make money on it.Microsoft Profitability Analysis
The company reported the revenue of 198.27 B. Net Income was 72.74 B with profit before overhead, payroll, taxes, and interest of 135.62 B.About Microsoft Valuation
We use absolute and relative valuation methodologies to arrive at the intrinsic value of Microsoft. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Microsoft based exclusively on its fundamental and basic technical indicators. By analyzing Microsoft's financials, quarterly and monthly indicators, and their related drivers, we attempt to find the most accurate representation of Microsoft's intrinsic value. As compared to an absolute model, our relative valuation model uses a comparative analysis of Microsoft. We calculate exposure to Microsoft's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of Microsoft's related companies.Microsoft Corporation develops, licenses, and supports software, services, devices, and solutions worldwide. The company was founded in 1975 and is headquartered in Redmond, Washington. MICROSOFT CORP operates under Software - Infrastructure classification in Exotistan and is traded on Commodity Exchange.
8 Steps to conduct Microsoft's Valuation Analysis
Company's valuation is the process of determining the worth of any company in monetary terms. It estimates Microsoft's potential worth based on factors such as financial performance, market conditions, growth prospects, and overall economic environment. The result of company valuation is a single number representing a Company's current market value. This value can be used as a benchmark for various financial transactions such as mergers and acquisitions, initial public offerings (IPOs), or private equity investments. To conduct Microsoft's valuation analysis, follow these 8 steps:- Gather financial information: Obtain Microsoft's financial statements, including balance sheets, income statements, and cash flow statements.
- Determine Microsoft's revenue streams: Identify Microsoft's primary sources of revenue, including products or services offered, target markets, and pricing strategies.
- Analyze market data: Research Microsoft's industry and market trends, including the size of the market, growth rate, and competition.
- Establish Microsoft's growth potential: Evaluate Microsoft's management, business model, and growth potential.
- Determine Microsoft's financial performance: Analyze its financial statements to assess its historical performance and future potential.
- Choose a valuation method: Consider the Company's specific circumstances and choose an appropriate valuation method, such as the discounted cash flow (DCF) or comparable analysis method.
- Calculate the value: Apply the chosen valuation method to the financial information and market data to calculate Microsoft's estimated value.
- Review and adjust: Review the results and make necessary adjustments, considering any relevant factors that may have been missed or overlooked.
Additional Information and Resources on Investing in Microsoft Stock
When determining whether Microsoft is a good investment, qualitative aspects like company management, corporate governance, and ethical practices play a significant role. A comparison with peer companies also provides context and helps to understand if Microsoft Stock is undervalued or overvalued. This multi-faceted approach, blending both quantitative and qualitative analysis, forms a solid foundation for making an informed investment decision about Microsoft Stock. Highlighted below are key reports to facilitate an investment decision about Microsoft Stock:Check out Correlation Analysis to better understand how to build diversified portfolios. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in board of governors. You can also try the Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.