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Company Analysis

Microsoft Corporation MSFT

A comprehensive view of key metrics, scores, and financial health for Microsoft Corporation

Overview of Microsoft Corporation

MSFT NMS
Technology Software - Infrastructure Mega Cap
Microsoft Corporation (MSFT), is a Mega Cap company, in the Software - Infrastructure industry, last closed at $395.55, about 54.3% overvalued vs fair value, +1.8% 1Y return, placing in the top 10% of its sector.
$395.55
-1.57%
As of March 13, 2026
Previous close • Vol 90d: 29.2%
52-Week Range
Market Cap
$3.04T
Enterprise Value
$3.04T
Overall Score
View breakdown
Overall
Growth
Fair
Profitability
Good
Health
Fair
Efficiency
Weak
Valuation
Good
Growth
Fair
Profitability
Good
Health
Fair
Efficiency
Weak
Valuation
Good
Completeness: 82%
Confidence: 90%
Updated: Mar 8
Top Beats
No strong beats yet

Quick Facts

Website https://www.microsoft.com
HQ Redmond, WA
Employees 228,000
Fiscal year Jun 30

Next Events

Earnings Apr 29 Estimated

Fair Value Snapshot

Bear Base Bull
$167
$181
$197
Current: $395.55 -54% vs base

Engine Room Money Flow™

Mega Cap

Corporate Free Cash Flow - Where revenue goes and how value is created

Flow Steps
Revenue
$281.7B
14.9%%
Gross Profit
$193.9B
13.4%%
Operating Income
$128.5B
17.4%%
Net Income
$101.8B
15.5%%
Operating Cash Flow
$136.2B
14.9%%
Free Cash Flow
$71.6B
-3.3%%
Financing Activities
$-49.4B
Net Change in Cash
$11.9B
173.3%%
Money Flow Bridge
Flow Direction: Money moves from left to right
Components: Breakdown shows composition of each stage
Industry-Specific: Corporate Free Cash Flow

Quality & Reliability Indicators

Cash Conversion Ratio
70.3%
Fair

FCF / Net Income - measures how well earnings convert to cash

Operating Cash Flow Margin
48.3%
Excellent

OCF / Revenue - cash profitability from operations

Reinvestment Rate
47.4%
Good

CapEx / OCF - how much cash is reinvested

Free Cash Flow Margin
25.4%
Excellent

FCF / Revenue - ultimate cash margin available to owners

Free Cash Flow Yield
2.35%
Poor

FCF / Market Cap - yield for equity holders

Owner's Pocket - Capital Allocation

Total Returned to Shareholders

Combined dividends, buybacks, and debt reduction

$51.5B
71.9% of FCF
Dividends
$24.1B
% of FCF 33.6%
Buybacks
$18.4B
% of FCF 25.7%
Debt Paydown
$9.0B
% of FCF 12.5%

Where It Leaks

Cash Flow Health healthy
Strong cash conversion with minimal leakage across profit-to-cash-to-value chain.
1
Active Leaks
0/1
Improving
0
High Impact
0
Critical
Moat Analysis Corporate Default

Competitive Advantage Assessment

Evaluating Microsoft Corporation's durable competitive advantages across 6 defense dimensions

Overall Moat Strength
82
/100
Strong
Scores based on quantitative metrics and qualitative factors

Click labels to expand details

Pricing Power

Strong
86

Ability to maintain or raise prices without losing volume

KEY SIGNALS
Margin Level Margin Stability
STRENGTHS
  • Margins Stable Across Cycles Operating margin volatility is low (stability score 0.96), demonstrating pricing resilience across cycles.

Trade-Off Ledger™

Where management spends the performance budget - Growth, Profitability, or Safety

Software SaaS vs Industry Peers 100% Coverage
Trade-Off Triangle Visualization A ternary plot showing MSFT's balance between Growth (28.7%), Profitability (45.2%), and Safety (26.2%). Growth 29% Safety 26% Profitability 45%

Click axes to expand details. Marker shows current allocation.

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Growth

52th percentile vs peers
53
Key Signals
Rev Growth YoY 14.9% 56p Revenue CAGR 3Y 12.4% 50p TSR 22.2% 68p EPS Growth YoY 15.6% 40p EPS CAGR 3Y 12.2% 48p
Strengths
  • Operating Margin in top 20% of peers (45.6%, 97th percentile)
  • Net Profit Margin in top 20% of peers (36.1%, 94th percentile)
  • Roic in top 20% of peers (27.3%, 90th percentile)
  • Fcf Margin in top 20% of peers (25.4%, 85th percentile)
Risks

No significant risks identified for this axis.

Two Futures

Scenario-based fair value ranges for Microsoft Corporation.

User assumptions applied -
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Unable to Compute Fair Value

This company cannot be valued using standard models.

What this means: The Scenario Theatre requires financial data (revenue, cash flow, shares outstanding) to calculate fair value estimates. This data may be unavailable for:

  • Recently listed companies (IPOs, SPACs)
  • Shell companies or holding companies
  • Companies that haven't filed recent financials
  • Foreign companies with limited data coverage
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Fair Value Range Current: $-
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