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 $343.51.
Microsoft Corporation develops, licenses, and supports software, services, devices, and solutions worldwide. The company is based in the United States. Microsoft currently returns an annual dividend yield of 0.8%.
Make Sure to Consider the Following Before Buying Microsoft:
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MSFT has a forward P/E ratio of 30.9 based on its EPS guidance of 10.95.
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Over the last 3 years, earnings per share (EPS) have been growing at a compounded average rate of 17.3%.
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The company has a price to earnings growth (PEG) ratio of 2.89.
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Its Price to Book (P/B) ratio is 12.93
Microsoft Has a Steady Stream of Strong Cash Flows
| Date Reported | Cash Flow from Operations ($ 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.
