Key Facts About Microsoft – A Must-Read for Investors

By Blake Campbell • Sunday, December 03 16:50 • Permanent Link

More and more people are talking about Microsoft over the last few weeks. Is it worth buying the Software stock at a price of $374.51? Only time will tell. The information below will give you a basic idea of what this investment may entail:

Microsoft has moved 47.0% over the last year, and the S&P 500 logged a change of 14.0%
MSFT has an average analyst rating of buy and is -7.14% away from its mean target price of $403.31 per share
Its trailing earnings per share (EPS) is $10.34
Microsoft has a trailing 12 month Price to Earnings (P/E) ratio of 36.2 while the S&P 500 average is 15.97
Its forward earnings per share (EPS) is $12.95 and its forward P/E ratio is 28.9
The company has a Price to Book (P/B) ratio of 12.61 in contrast to the S&P 500's average ratio of 2.95
Microsoft is part of the Technology sector, which has an average P/E ratio of 35.0 and an average P/B of 7.92
MSFT has reported YOY quarterly earnings growth of 27.2% and gross profit margins of 0.7%
The company has a free cash flow of $50.42 Billion, which refers to the total sum of all its inflows and outflows of cash over the last quarter
Microsoft Corporation develops and supports software, services, devices and solutions worldwide. The Productivity and Business Processes segment offers office, exchange, SharePoint, Microsoft Teams, office 365 Security and Compliance, Microsoft viva, and Microsoft 365 copilot; and office consumer services, such as Microsoft 365 consumer subscriptions, Office licensed on-premises, and other office services. This segment also provides LinkedIn; and dynamics business solutions, including Dynamics 365, a set of intelligent, cloud-based applications across ERP, CRM, power apps, and power automate; and on-premises ERP and CRM applications. The Intelligent Cloud segment provides server products and cloud services, such as azure and other cloud services; SQL and windows server, visual studio, system center, and related client access licenses, as well as nuance and GitHub; and enterprise services including enterprise support services, industry solutions, and nuance professional services. The More Personal Computing segment offers Windows, including windows OEM licensing and other non-volume licensing of the Windows operating system; Windows commercial comprising volume licensing of the Windows operating system, windows cloud services, and other Windows commercial offerings; patent licensing; and windows Internet of Things; and devices, such as surface, HoloLens, and PC accessories. Additionally, this segment provides gaming, which includes Xbox hardware and content, and first- and third-party content; Xbox game pass and other subscriptions, cloud gaming, advertising, third-party disc royalties, and other cloud services; and search and news advertising, which includes Bing, Microsoft News and Edge, and third-party affiliates. The company sells its products through OEMs, distributors, and resellers; and directly through digital marketplaces, online, and retail stores. The company was founded in 1975 and is headquartered in Redmond, Washington.

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.