Here's What You May Have Missed About Microsoft (MSFT)

After moving -3.6% during today's afternoon session, Microsoft is now trading at a price of $328.25 per share. On average, analysts give it a target price of $370.22.

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

Potential Microsoft Investors Should Analyze the Following:

  • Microsoft has moved 46.0% over the last year.

  • The company has a price to earnings growth (PEG) ratio of 2.21. 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 11.05

  • Microsoft currently returns an annual dividend yield of 0.8%.

Understanding Microsoft's Operating Margins

Date Reported Total Revenue ($ k) Operating Expenses ($ k) Operating Margins (%) YoY Growth (%)
2023 211,915,000 7,575,000 42 0.0
2022 198,270,000 5,900,000 42 0.0
2021 168,088,000 5,107,000 42 13.51
2020 143,015,000 5,111,000 37 5.71
2019 125,843,000 4,885,000 35 6.06
2018 110,360,000 4,754,000 33

Microsoft's operating margins have averaged 38.5% over the last 6 years, which is significantly higher than the Software industry average of 21.81%. The firm's margins exhibit a relatively stable growth trend of 4.2%.

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.

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