Consider This Before Taking a Position in Microsoft (MSFT)

Large-cap technology company Microsoft has moved 0.2% this evening, reaching $373.26 per share. In contrast, the average analyst target price for the stock is $373.57.

Microsoft Corporation develops and supports software, services, devices and solutions worldwide. The company is based in the United States. Microsoft currently returns an annual dividend yield of 0.7%.

What to Consider if You Are Thinking of Buying Microsoft:

  • Microsoft has moved 54.1% over the last year.

  • MSFT has a forward P/E ratio of 31.4 based on its EPS guidance of 11.88.

  • Over the last 6 years, earnings per share (EPS) have been growing at a compounded average rate of 28.7%.

  • The company has a price to earnings growth (PEG) ratio of 2.55.

  • Its Price to Book (P/B) ratio is 12.57

Microsoft Has Irregular Cash Flows

Date Reported Cash Flow from Operations ($ k) Capital expenditures ($ k) Free Cash Flow ($ k) YoY Growth (%)
2023 87,582,000 28,107,000 59,475,000 -8.71
2022 89,035,000 23,886,000 65,149,000 16.09
2021 76,740,000 20,622,000 56,118,000 24.06
2020 60,675,000 15,441,000 45,234,000 18.23
2019 52,185,000 13,925,000 38,260,000 18.63
2018 43,884,000 11,632,000 32,252,000

The firm's free cash flows have a decent average of $49.41 Billion over the last 6 years. The compounded average growth rate over this period is 12.1%, with a year-on-year growth variability coefficient of 112.85%.

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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