Microsoft Stock Current Valuation
| MSFT Stock | USD 415.57 0.00 0.00% |
Valuation analysis of Microsoft helps investors to measure Microsoft's intrinsic value by examining its available valuation indicators, including the cash flow records, the balance sheet account changes and income statement patterns.
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 |
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 Company Current Valuation Analysis
Microsoft's Enterprise Value is a firm valuation proxy that approximates the current market value of a company. It is typically used to determine the takeover or merger price of a firm. Unlike Market Cap, this measure takes into account the entire liquid asset, outstanding debt, and exotic equity instruments that the company has on its balance sheet. When a takeover occurs, the parent company will have to assume the target company's liabilities but will take possession of all cash and cash equivalents.
Current Microsoft Current Valuation | 1.78 T |
Most of Microsoft's fundamental indicators, such as Current Valuation, are part of a valuation analysis module that helps investors searching for stocks that are currently trading at higher or lower prices than their real value. If the real value is higher than the market price, Microsoft is considered to be undervalued, and we provide a buy recommendation. Otherwise, we render a sell signal.
Enterprise Value can be a useful tool to compare companies with different capital structures. Long term liability and current cash or cash equivalents can have a huge impact on market valuation of a given company.
CompetitionIn accordance with the recently published financial statements, Microsoft has a Current Valuation of 1.78 T. This is much higher than that of the Technology sector and significantly higher than that of the Software - Infrastructure industry. The current valuation for all Chile stocks is significantly lower than that of the firm.
Microsoft Current Valuation Peer Comparison
Stock peer comparison is one of the most widely used and accepted methods of equity analyses. It analyses Microsoft's direct or indirect competition against its Current Valuation to detect undervalued stocks with similar characteristics or determine the stocks which would be a good addition to a portfolio. Peer analysis of Microsoft could also be used in its relative valuation, which is a method of valuing Microsoft by comparing valuation metrics of similar companies.Microsoft is currently under evaluation in current valuation category among its peers.
Microsoft Fundamentals
| Return On Equity | 0.39 | |||
| Return On Asset | 0.15 | |||
| Profit Margin | 0.33 % | |||
| Operating Margin | 0.41 % | |||
| Current Valuation | 1.78 T | |||
| Shares Outstanding | 7.44 B | |||
| Shares Owned By Insiders | 0.06 % | |||
| Shares Owned By Institutions | 73.54 % | |||
| Price To Earning | 27.85 X | |||
| Price To Book | 9.85 X | |||
| Price To Sales | 9.44 X | |||
| Revenue | 198.27 B | |||
| Gross Profit | 135.62 B | |||
| EBITDA | 97.84 B | |||
| Net Income | 72.74 B | |||
| Cash And Equivalents | 133.82 B | |||
| Cash Per Share | 17.51 X | |||
| Total Debt | 47.03 B | |||
| Debt To Equity | 83.90 % | |||
| Current Ratio | 2.53 X | |||
| Book Value Per Share | 24.59 X | |||
| Cash Flow From Operations | 89.03 B | |||
| Earnings Per Share | 9.00 X | |||
| Price To Earnings To Growth | 2.03 X | |||
| Number Of Employees | 221 K | |||
| Beta | 0.92 | |||
| Market Capitalization | 2.01 T | |||
| Total Asset | 364.84 B | |||
| Z Score | 25.2 | |||
| Annual Yield | 0.01 % | |||
| Net Asset | 364.84 B | |||
| Last Dividend Paid | 2.6 |
About Microsoft Fundamental Analysis
The Macroaxis Fundamental Analysis modules help investors analyze Microsoft's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Microsoft using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Microsoft based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.
Pair Trading with Microsoft
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Microsoft position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Microsoft will appreciate offsetting losses from the drop in the long position's value.Moving against Microsoft Stock
The ability to find closely correlated positions to Microsoft could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Microsoft when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Microsoft - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Microsoft to buy it.
The correlation of Microsoft is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Microsoft moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Microsoft moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Microsoft can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.