What Are the Fundamentals of Microsoft (MSFT)?

Large-cap technology company Microsoft has moved 0.2% this afternoon, reaching $338.56 per share. In contrast, the average analyst target price for the stock is $343.51.

Microsoft Corporation develops, licenses, and supports software, services, devices, and solutions worldwide. The company is based in the United States. Microsoft currently returns an annual dividend yield of 0.8%.

Make Sure to Consider the Following Before Buying Microsoft:

  • MSFT has a forward P/E ratio of 30.9 based on its EPS guidance of 10.95.

  • Over the last 3 years, earnings per share (EPS) have been growing at a compounded average rate of 17.3%.

  • The company has a price to earnings growth (PEG) ratio of 2.89.

  • Its Price to Book (P/B) ratio is 12.93

Microsoft Has a Steady Stream of Strong Cash Flows

Date Reported Cash Flow from Operations ($ k) Capital expenditures ($ k) Free Cashflow ($ k) YoY Growth (%)
2022-06-30 89,035,000 -23,886,000 65,149,000 16.09
2021-06-30 76,740,000 -20,622,000 56,118,000 24.06
2020-06-30 60,675,000 -15,441,000 45,234,000 n/a

Averaging $55.5 Billion over the last 3 years, Microsoft has strong free cash flows. With a compounded average growth rate of 12.9% and coefficient of variability of 18.0%, investors who focus on cash flow stability will want to take a closer look at this company.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.