What Should You know About Microsoft (MSFT) Before Investing?

Shares of Large-cap technology company Microsoft moved 0.1 this evening, and are now trading at $319.36 per share. On the other hand, the average analyst target price for the stock is $391.14.

Microsoft Corporation develops and supports software, services, devices and solutions worldwide.

Microsoft Investors Should Consider This:

  • Microsoft has moved 30.0% over the last year.

  • The company has a price to earnings growth (PEG) ratio of 2.01. A number between 0 and 1 could mean that the market is undervaluing Microsoft's estimated growth potential

  • Its Price to Book (P/B) ratio is 11.51

  • Microsoft currently returns an annual dividend yield of 0.9%.

Understanding Microsoft's Operating Margins

Date Reported Total Revenue ($ k) Operating Expenses ($ k) Operating Margins (%) YoY Growth (%)
2022-07-28 198,270,000 -52,237,000 42 0.0
2021-07-29 168,088,000 -45,940,000 42 13.51
2020-07-30 143,015,000 -43,978,000 37 8.82
2019-08-01 125,843,000 -39,974,000 34 6.25
2018-08-03 110,360,000 -36,949,000 32 6.67
2017-08-02 96,571,000 -32,979,000 30

Microsoft's operating margins have averaged 36.2% over the last 6 years, which is significantly higher than the Software industry average of 21.81%. In addition, the firm's margins benefit from a 5.8% yearly growth rate.

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.