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Microsoft

Nasdaq:MSFT
Snowflake Description

High growth potential with adequate balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
MSFT
Nasdaq
$708B
Market Cap
  1. Home
  2. US
  3. Software
2018/02/18
Company description

Microsoft Corporation develops, licenses, and supports software products, services, and devices worldwide. More info.


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3 Month History
MSFT
Industry
5yr Volatility vs Market

Value

 Is Microsoft undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Microsoft to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.

How is this discounted cash flow calculated?

  • The current share price of Microsoft is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Microsoft's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Microsoft's earnings available for a low price, and how does this compare to other companies in the same industry?
  • Microsoft is overvalued based on earnings compared to the US Software industry average.
  • Microsoft is overvalued based on earnings compared to the US market.
Price based on expected Growth
Does Microsoft's expected growth come at a high price?
  • Microsoft is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Microsoft's assets?
  • Microsoft is overvalued based on assets compared to the US Software industry average.
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Value checks
We assess Microsoft's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Software industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Software industry average (and greater than 0)? (1 check)
  5. Microsoft has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.
    Note 2: PEG ratio is based on analysts EPS growth expectations in 1 year (137.25%).

    Full details on the Value part of the Simply Wall St company analysis model.
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Discounted cash flow (2 Stage Free Cash Flow to Equity)

The calculations below outline how an intrinsic value for Microsoft is arrived at by discounting future cash flows to their present value. We use analyst's estimates of cash flows going forward 5 years.

See our documentation to learn about this calculation.

5 year cash flow forecast

Present value of next 5 years cash flows:
$137,573

Terminal Value

Terminal Value = FCF2022 × (1 + g) ÷ (Discount Rate – g)

Terminal Value = $38,768 × (1 + 2.47%) ÷ (10.16% – 2.47%)

Terminal value based on the Perpetuity Method where growth (g) = 2.47%:
$516,629

Present value of terminal value:
$318,472

Equity Value

Equity Value (Total value) = Present value of next 5 years cash flows + terminal value
$456,044 = $137,573 + $318,472

Value = Total value / Shares Outstanding ($456,044 / 7,700)

Discount to Share Price

Value per share:
$59.23

Current discount (share price of $92): -55.33%



Estimate of Discount Rate

The discount rate, or required rate of return, is estimated by calculating the Cost of Equity.

Discount rate = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)

Discount rate = 10.16% = 2.47% + (1.021 * 7.53%)



Estimate of Bottom Up Beta

The Levered Beta is the Unlevered Beta adjusted for financial leverage. It is limited to 0.8 to 2.0 (practical range for a stable firm). Note the market value of equity is used not the book value ($708,380,942,384).

Levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))

1.021 = 0.946 (1 + (1- 40%) (13.16%))

Levered Beta used in calculation = 1.021



Assumptions
  1. The risk free rate of 2.47% is from the 10 year government bond rate in USD.
  2. The bottom-up beta is estimated by analysing other companies in the same industry.
  3. The Equity Risk Premium is calculated by subtracting the risk free rate from the market return premium (7.53%) (source: Buffet).
  4. The dividend discount model is automatically used for companies in the following industries: Banks, Insurance, Real Estate Investment Trusts (REITs), Diversified Financial Services and Capital Markets.

Future Performance

 How is Microsoft expected to perform in the next 1 to 3 years based on estimates from 31 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
31%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Microsoft expected to grow at an attractive rate?
  • Microsoft's earnings growth is expected to exceed the low risk savings rate of 4.5%.
Growth vs Market Checks
  • Microsoft's earnings growth is expected to exceed the US market average.
  • Microsoft's revenue growth is expected to exceed the US market average.
Annual Growth Rates Comparison
Analysts growth expectations
Super high growth metrics
High Growth Checks
  • Microsoft's earnings are expected to grow significantly at over 20% yearly.
  • Microsoft's revenue is expected to grow by 8.2% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Microsoft is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
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Future performance checks
We assess Microsoft's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the US market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the US market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Microsoft has a total score of 5/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Microsoft performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Microsoft's growth in the last year to its industry (Software).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Microsoft's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.
  • Microsoft's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Microsoft's 1-year earnings growth is negative, it can't be compared to the US Software industry average.
Earnings and Revenue History
Microsoft's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Microsoft has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Microsoft used its assets less efficiently than the US Software industry average last year based on Return on Assets.
  • Microsoft's use of capital has not improved over the past 3 years (Return on Capital Employed).
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Past performance checks
We assess Microsoft's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Software industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Microsoft has a total score of 0/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Microsoft's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Microsoft's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Microsoft is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Microsoft's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Microsoft's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 1.8x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
  • Microsoft's level of debt (118.9%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (19.6% vs 118.9% today).
  • Debt is well covered by operating cash flow (45%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 28.8x coverage).
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Financial health checks
We assess Microsoft's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by short term assets? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Microsoft has a total score of 4/6, see the detailed checks below.


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Microsoft's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
1.83%
Current annual income from Microsoft dividends. Estimated to be 1.96% next year.
If you bought $2,000 of Microsoft shares you are expected to receive $37 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Microsoft's dividend is below the low risk savings rate (2.25%).
  • Microsoft's dividend is below the markets top dividend payers (3.18%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
  • Dividends per share have been stable in the past 10 years.
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Microsoft's earnings are paid to the shareholders as a dividend.
  • Dividends paid are not well covered by net profit (0.8x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by net profit (2.7x coverage).
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Income/ dividend checks
We assess Microsoft's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.5%) - if not then the rest of the checks are ignored.
  2. Current dividend yield, is there one at all, is it higher than the low risk savings rate, and is it above the top 25% of dividend payers? (2 checks)
  3. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  4. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  5. How sustainable is the dividend, can Microsoft afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  6. Microsoft has a total score of 3/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Microsoft's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Satya Nadella, image provided by Google.
Satya Nadella
COMPENSATION $20,014,152
AGE 50
TENURE AS CEO 4 years
CEO Bio

Mr. Satya Nadella is Chief Executive Officer and Director of Microsoft Corporation since February 2014. Before being named CEO in February 2014, he held leadership roles in both enterprise and consumer businesses across the Company. He has held various leadership positions at Microsoft since joining Microsoft in 1992, including Executive Vice President of Cloud and Enterprise from July 2013 to February 2014; President of Server and Tools from 2011 to 2013; Senior Vice President of Online Services Division from 2009 to 2011; and Senior Vice President of Search, Portal, and Advertising from 2008 to 2009. Mr. Nadella’s roles also included Vice President of the Microsoft Business Division. He has been a Director of Starbucks Corp since March 22, 2017. Before joining Microsoft, he was a Member of the Technology Staff at Sun Microsystems. He earned a bachelor’s degree in electrical engineering from Mangalore University, a master’s degree in computer science from the University of Wisconsin – Milwaukee and a master’s degree in business administration from the University of Chicago. He serves on the Board of Trustees to Fred Hutchinson Cancer Research Center. Mr. Nadella was on the Board of Directors of Riverbed Technology, Inc.

CEO Compensation
  • Satya's compensation has been consistent with company performance over the past year.
  • Satya's compensation appears reasonable for a company of this size and profit level.
Management Team Tenure

Average tenure and age of the Microsoft management team in years:

3
Average Tenure
55.4
Average Age
  • The tenure for the Microsoft management team is about average.
Management Team

Satya Nadella

TITLE
Chief Executive Officer & Director
COMPENSATION
$20M
AGE
50
TENURE
4 yrs

Brad Smith

TITLE
President
COMPENSATION
$10M
AGE
58
TENURE
2.4 yrs

Bill Gates

TITLE
Co-Founder
AGE
62
TENURE
4 yrs

Amy Hood

TITLE
Executive VP & CFO
COMPENSATION
$12M
AGE
45
TENURE
4.8 yrs

Jean-Philippe Courtois

TITLE
Executive VP and President of Microsoft Global Sales
COMPENSATION
$18M
AGE
56
TENURE
1.6 yrs

Peggy Johnson

TITLE
Executive Vice President of Business Development
COMPENSATION
$7M
AGE
55
TENURE
3.5 yrs

Michael Beal

TITLE
GM and President of Belgium & Luxemburg

Frank Brod

TITLE
Corporate VP of Finance & Administration and Chief Accounting Officer
AGE
62

Kevin Scott

TITLE
Chief Technology Officer
TENURE
1.1 yrs

Vikas Mehta

TITLE
Director of Investor Relations
Board of Directors Tenure

Average tenure and age of the Microsoft board of directors in years:

8.8
Average Tenure
59.7
Average Age
  • The tenure for the Microsoft board of directors is about average.
Board of Directors

John Thompson

TITLE
Chairman of the Board
COMPENSATION
$690K
AGE
68
TENURE
4 yrs

Satya Nadella

TITLE
Chief Executive Officer & Director
COMPENSATION
$20M
AGE
50
TENURE
4 yrs

Bill Gates

TITLE
Co-Founder
AGE
62
TENURE
37.1 yrs

Chuck Noski

TITLE
Independent Director
COMPENSATION
$370K
AGE
64
TENURE
14.3 yrs

Helmut Panke

TITLE
Independent Director
COMPENSATION
$360K
AGE
71
TENURE
14.3 yrs

John Stanton

TITLE
Independent Director
COMPENSATION
$340K
AGE
62
TENURE
3.6 yrs

Teri List-Stoll

TITLE
Independent Director
COMPENSATION
$355K
AGE
54
TENURE
3.3 yrs

Charlie Scharf

TITLE
Director
COMPENSATION
$325K
AGE
52
TENURE
3.3 yrs

Sandi Peterson

TITLE
Independent Director
COMPENSATION
$340K
AGE
58
TENURE
2.2 yrs

Padmasree Warrior

TITLE
Director
COMPENSATION
$325K
AGE
56
TENURE
2.2 yrs
Recent Insider Trading
  • Microsoft insiders have only sold shares in the past 3 months.
Who owns this company?
X
Management checks
We assess Microsoft's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap and profit (greater than 0.5% of the company's profit + 0.03% of market cap)? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Microsoft has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

Company News

External News
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Simply Wall St News

Interested In Microsoft Corporation (NASDAQ:MSFT)’s Upcoming $0.42 Dividend? You Have 3 Days Left

See our latest analysis for Microsoft Here's how I find good dividend stocks When assessing a stock as a potential addition to my dividend Portfolio, I look at these five areas: Is it paying an annual yield above 75% of dividend payers? … Compared to its peers, Microsoft has a yield of 1.91%, which is high for Software stocks but still below the low risk savings rate. … Next Steps: Whilst there are few things you may like about Microsoft from a dividend stock perspective, the truth is that overall it probably is not the best choice for a dividend investor.

Simply Wall St -

What Should You Know Before Buying Microsoft Corporation (NASDAQ:MSFT) For Its Dividend

Does Microsoft tick all the boxes of a great dividend stock? … Check out our latest analysis for Microsoft How I analyze a dividend stock Whenever I am looking at a potential dividend stock investment, I always check these five metrics: Is it the top 25% annual dividend yield payer? … Relative to peers, Microsoft generates a yield of 1.81%, which is high for Software stocks but still below the low risk savings rate.Next Steps: With this in mind, I definitely rank Microsoft as a strong dividend stock, and makes it worth further research for anyone who likes steady income generation from their portfolio.

Simply Wall St -

How Did Microsoft Corporation's (NASDAQ:MSFT) 27.64% ROE Fare Against The Industry?

Check out our latest analysis for Microsoft Peeling the layers of ROE – trisecting a company’s profitability Return on Equity (ROE) weighs Microsoft’s profit against the level of its shareholders’ equity. … Return on Equity = Net Profit ÷ Shareholders Equity ROE is measured against cost of equity in order to determine the efficiency of Microsoft’s equity capital deployed. … This is called the Dupont Formula: Dupont Formula ROE = profit margin × asset turnover × financial leverage ROE = (annual net profit ÷ sales) × (sales ÷ assets) × (assets ÷ shareholders’ equity) ROE = annual net profit ÷ shareholders’ equity NasdaqGS:MSFT Last Perf Jan 29th 18 The first component is profit margin, which measures how much of sales is retained after the company pays for all its expenses.

Simply Wall St -

What Do Current Expectations Tell Us About Microsoft Corporation's (NASDAQ:MSFT) Margins In The Future?

Knowing the portion of top line revenue that is turned into net income helps to assess this ability whilst spotting profit drivers, and can be found by calculating MSFT's profit margin. … Margin Calculation for MSFT Profit Margin = Net Income ÷ Revenue ∴ Profit Margin = 22.11 Billion ÷ 92.56 Billion = 23.89% Microsoft's margin has contracted in the past five years, as a result of a positive 4.47% average growth in revenue and decline in net income of -3.99% on average, which means that although revenue has increased, a smaller portion falls in to the bottom line. … Thus, it is essential to run your own analysis on Microsoft's future earnings whilst maintaining a watchful eye over the sustainability of their cost management methods and the runway for top line growth.

Simply Wall St -

What Do Analysts Think About Microsoft Corporation's (NASDAQ:MSFT) Earnings Trajectory?

Below, I've laid out key numbers on how market analysts perceive Microsoft's earnings growth outlook over the next couple of years and whether the future looks even brighter than the past. … NasdaqGS:MSFT Future Profit Jan 12th 18 While it is useful to be aware of the rate of growth year by year relative to today’s level, it may be more beneficial to determine the rate at which the earnings are moving every year, on average. … The slope of this line is the rate of earnings growth, which in this case is 10.50%.

Simply Wall St -

Is Microsoft Corporation (NASDAQ:MSFT) Worth $86.35 Based On Its Intrinsic Value?

In this article I am going to calculate the intrinsic value of Microsoft Corporation (NASDAQ:MSFT) by estimating the company's future cash flows and discounting them to their present value. … 5-year cash flow forecast 2018 2019 2020 2021 2022 Levered FCF ($, Millions) $32,513.63 $35,514.88 $39,112.67 $40,835.67 $39,130.00 Source Analyst x16 Analyst x17 Analyst x6 Analyst x3 Analyst x2 Present Value Discounted @ 9.68% $29,644.22 $29,522.94 $29,644.30 $28,218.76 $24,653.74 Present Value of 5-year Cash Flow (PVCF)= $141,684 We now need to calculate the Terminal Value, which accounts for all the future cash flows after the five years. … Terminal Value (TV) = FCF2022 × (1 + g) ÷ (r – g) = $39,130 × (1 + 2.5%) ÷ (9.7% – 2.5%) = $556,163 Present Value of Terminal Value (PVTV) = TV / (1 + r)5 = $556,163 / ( 1 + 9.7%)5 = $350,409 The total value is the sum of cash flows for the next five years and the discounted terminal value, which results in the Total Equity Value, which in this case is $492,093.

Simply Wall St -

Is Microsoft Corporation's (NASDAQ:MSFT) PE Ratio A Signal To Buy For Investors?

Formula Price-Earnings Ratio = Price per share ÷ Earnings per share P/E Calculation for MSFT Price per share = $85.35 Earnings per share = $2.862 ∴ Price-Earnings Ratio = $85.35 ÷ $2.862 = 29.8x The P/E ratio itself doesn’t tell you a lot; however, it becomes very insightful when you compare it with other similar companies. … For example, if you accidentally compared higher growth firms with MSFT, then MSFT’s P/E would naturally be lower since investors would reward its peers’ higher growth with a higher price. … Alternatively, if you inadvertently compared less risky firms with MSFT, MSFT’s P/E would again be lower since investors would reward its peers’ lower risk with a higher price as well.

Simply Wall St -

Does Microsoft Corporation's (MSFT) Recent Track Record Look Strong?

This shows that, on average, Microsoft has been able to steadily improve its bottom line over the past couple of years as well. … Over the past couple of years, Microsoft top-line expansion has outstripped earnings and the growth rate of expenses. … Eyeballing growth from a sector-level, the US software industry has been growing its average earnings by double-digit 18.12% over the past year, and a more muted 7.70% over the past couple of years.

Simply Wall St -

Microsoft Corporation (MSFT): Ex-Dividend Is Coming In 3 Days, Should You Buy?

Check out our latest analysis for Microsoft Here's how I find good dividend stocks When researching a dividend stock, I always follow the following screening criteria: Is their annual yield among the top 25% of dividend payers? … Compared to its peers, Microsoft produces a yield of 1.90%, which is high for software stocks but still below the low risk savings rate. … There's not much to jump for joy about for Microsoft from a dividend stock perspective.

Simply Wall St -

What Is Microsoft Corporation's (MSFT) Share Price Doing?

Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at MSFT future expectations. … MSFT’s optimistic future growth appears to have been factored into the current share price, with shares trading above its fair value. … If you believe MSFT should trade below its current price, selling high and buying it back up again when its price falls towards its real value can be profitable.

Simply Wall St -

Company Info

Map
Description

Microsoft Corporation develops, licenses, and supports software products, services, and devices worldwide. The company’s Productivity and Business Processes segment offers Office 365 commercial products and services for businesses, including Office, Exchange, SharePoint, Skype for Business, and related Client Access Licenses (CALs); Office 365 consumer services, such as Skype, Outlook.com, and OneDrive; Dynamics business solutions, such as financial management, enterprise resource planning, customer relationship management, supply chain management, and analytics applications for small and mid-size businesses, large organizations, and divisions of enterprises; and LinkedIn online professional network. Its Intelligent Cloud segment licenses server products and cloud services, such as Microsoft SQL Server, Windows Server, Visual Studio, System Center, and related CALs, as well as Azure, a cloud platform; and enterprise services, such as Premier Support and Microsoft Consulting that assist in developing, deploying, and managing Microsoft server and desktop solutions, as well as provide training and certification to developers and IT professionals on Microsoft products. The company’s More Personal Computing segment comprises Windows OEM, volume, and other non-volume licensing of the Windows operating system; patent licensing, Windows Internet of Things, MSN display advertising, and Windows Phone licensing system; devices, including Microsoft Surface, phones, and PC accessories; and search advertising, including Bing and Bing Ads. This segment also provides gaming platforms, including Xbox hardware, Xbox Live, video games, and third-party video games. The company markets and distributes its products through original equipment manufacturers, distributors, and resellers, as well as through online and Microsoft retail stores. Microsoft Corporation has a strategic partnership with CNH Industrial N.V. The company was founded in 1975 and is headquartered in Redmond, Washington.

Details
Name: Microsoft Corporation
MSFT
Exchange: NasdaqGS
Founded: 1975
$708,380,942,384
7,699,792,852
Website: http://www.microsoft.com
Address: Microsoft Corporation
One Microsoft Way,
Redmond,
Washington, 98052,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGS MSFT Common Stock Nasdaq Global Select US USD 13. Mar 1986
DB MSF Common Stock Deutsche Boerse AG DE EUR 13. Mar 1986
XTRA MSF Common Stock XETRA Trading Platform DE EUR 13. Mar 1986
SWX MSFT Common Stock SIX Swiss Exchange CH USD 13. Mar 1986
SWX MSFT Common Stock SIX Swiss Exchange CH CHF 13. Mar 1986
SEHK 4338 Common Stock The Stock Exchange of Hong Kong Ltd. HK HKD 13. Mar 1986
ENXTBR MSF Common Stock Euronext Brussels BE USD 13. Mar 1986
WBAG MSFT Common Stock Wiener Boerse AG AT EUR 13. Mar 1986
SNSE MSFT Common Stock Santiago Stock Exchange CL USD 13. Mar 1986
BVC MSFT Common Stock Bolsa de Valores de Colombia CO COP 13. Mar 1986
BMV MSFT * Common Stock Bolsa Mexicana de Valores MX MXN 13. Mar 1986
BOVESPA MSFT34 BDR EACH REPR 1 COM SHS Bolsa de Valores de Sao Paulo BR BRL 21. Dec 2011
BASE MSFT CEDEARS EACH REP 1/5 ORD USD0.000025 Buenos Aires Stock Exchange AR ARS 22. Dec 1999
Number of employees
Current staff
Staff numbers
124,000
Microsoft employees.
Industry
Systems Software
Software
Company Analysis and Financial Data Status
Area Date
Company Analysis updated: 2018/02/18
Last estimates confirmation: 2018/02/13
Last earnings update: 2017/12/31
Last annual earnings update: 2017/06/30


All dates in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.