Is Microsoft an Undervalued Growth Stock to Buy?
Tech giant Microsoft (NASDAQ:MSFT) has been one of the biggest…
Buy
54
MSFT Quote, Financials, Valuation and Earnings
Last price:
$424.00
Seasonality move
:
25.35%
Day range:
$426.35 - $435.22
52-week range:
$366.50 - $468.35
Dividend yield:
0.72%
P/E ratio:
35.52x
P/S ratio:
12.65x
P/B ratio:
11.13x
Volume:
17.9M
Avg. volume:
22.2M
1-year change:
15.09%
Market cap:
$3.2T
Revenue:
$245.1B
EPS (TTM):
$12.12
Analysts' Opinion
-
Consensus RatingMicrosoft has received a consensus rating of Buy. The company's average rating is a Buy based on 37 Buy ratings, 5 Hold ratings, and 0 Sell ratings.
-
Price Target UpsideAccording to analysts' consensus price target of $508.55, Microsoft has an estimated upside of 18.12% from its current price of $430.53.
-
Price Target DownsideAccording to analysts, the lowest downside price target is $420.00 representing 100% downside risk from its current price of $430.53.
Fair Value
-
According to the consensus of 42 analysts, Microsoft has 18.12% upside to fair value with a price target of $508.55 per share.
MSFT vs. S&P 500
-
Over the past 5 trading days, Microsoft has underperformed the S&P 500 by -2.15% suggesting its relative strength compared to the major market average is weak at this time.
Share Buyback
-
Microsoft does have a share repurchase program in place at this time. The scale of a buyback program can materially affect share price and usually results in a higher earnings per share, all else being equal, when the share count drops.
Revenue Growth
-
Microsoft has grown year-over-year revenues for 29 quarters straight. In the most recent quarter Microsoft reported revenues of $65.6B.
Earnings Growth
-
Microsoft has grown year-over-year earnings for 7 quarters straight. In the most recent quarter Microsoft reported earnings per share of $3.30.
Enterprise value:
3.2T
EV / Invested capital:
9.52x
Price / LTM sales:
12.65x
EV / EBIT:
27.84x
EV / Revenue:
12.46x
PEG ratio (5yr expected):
2.05x
EV / Free cash flow:
43.59x
Price / Operating cash flow:
44.27x
Enterprise value / EBITDA:
22.70x
Gross Profit (TTM):
$176.3B
Return On Assets:
18.58%
Net Income Margin (TTM):
35.61%
Return On Equity:
35.68%
Return On Invested Capital:
28.71%
Operating Margin:
46.58%
| Trailing 12 Months | Fiscal Quarters | |||||
|---|---|---|---|---|---|---|
| Period Ending | 2022-09-30 | 2023-09-30 | 2024-09-30 | 2023-09-30 | 2024-09-30 | |
| Income Statement | ||||||
| Revenue | $203.1B | $218.3B | $254.2B | $56.5B | $65.6B | |
| Gross Profit | $138.6B | $151.6B | $176.3B | $40.2B | $45.5B | |
| Operating Income | $84.7B | $93.9B | $113.1B | $26.9B | $30.6B | |
| EBITDA | $100.8B | $112B | $139.5B | $31.7B | $38.2B | |
| Diluted EPS | $9.28 | $10.33 | $12.12 | $2.99 | $3.30 | |
| Period Ending | 2020-09-30 | 2021-09-30 | 2022-09-30 | 2023-09-30 | 2024-09-30 | |
|---|---|---|---|---|---|---|
| Balance Sheet | ||||||
| Current Assets | $177.1B | $174.3B | $160.8B | $207.6B | $149.9B | |
| Total Assets | $301B | $335.4B | $359.8B | $445.8B | $523B | |
| Current Liabilities | $70.1B | $80.5B | $87.4B | $124.8B | $115.2B | |
| Total Liabilities | $177.6B | $183.4B | $186.2B | $225.1B | $235.3B | |
| Total Equity | $123.4B | $152B | $173.6B | $220.7B | $287.7B | |
| Total Debt | $63.6B | $53.3B | $48.6B | $71.5B | $45.1B | |
| Trailing 12 Months | Fiscal Quarters | |||||
|---|---|---|---|---|---|---|
| Period Ending | 2022-09-30 | 2023-09-30 | 2024-09-30 | 2023-09-30 | 2024-09-30 | |
| Cash Flow Statement | ||||||
| Cash Flow Operations | $87.7B | $95B | $122.1B | $30.6B | $34.2B | |
| Cash From Investing | -$30.2B | -$19B | -$112.7B | $503M | -$15.2B | |
| Cash From Financing | -$53.5B | -$18.3B | -$69.1B | $14.8B | -$16.6B | |
| Free Cash Flow | $63.3B | $63.2B | $72.7B | $20.7B | $19.3B | |
MSFT
Sector
Market Cap
$3.2T
$123.7M
Price % of 52-Week High
91.93%
68.85%
Dividend Yield
0.72%
0%
Shareholder Yield
1.16%
1%
1-Year Price Total Return
15.09%
-7.9%
Beta (5-Year)
0.899
0.944
Dividend yield:
0.72%
Annualized payout:
$2.93
Payout ratio:
24.63%
Growth streak:
18 years
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Technicals
8-day SMA
Sell
Level
$438.59
200-day SMA
Buy
Level
$425.14
Bollinger Bands (100)
Buy
Level
411.68 - 435.4
Chaikin Money Flow
Buy
Level
414.1M
20-day SMA
Sell
Level
$440.24
Relative Strength Index (RSI14)
Sell
Level
45.04
ADX Line
Sell
Level
24.35
Williams %R
Buy
Level
-85.9801
50-day SMA
Buy
Level
$428.32
MACD (12, 26)
Buy
Level
2.55
25-day Aroon Oscillator
Buy
Level
56
On Balance Volume
Neutral
Level
586.5M
Financial Scores
Buy
Altman Z-Score
(Annual)
Level (9.9271)
Buy
CA Score
(Annual)
Level (0.8858)
Buy
Beneish M-Score
(Annual)
Level (-2.4397)
Buy
Momentum Score
Level (7)
Buy
Ohlson Score
Level (-3.5765)
Buy
Piotroski F Score
(Annual)
Level (7)
Buy
Quality Ratio Score
Level (5)
Buy
Fundamental Score
Level (10)
Revenue Forecast
Earnings per Share Forecast
Company Profile
Microsoft develops and licenses consumer and enterprise software. It is known for its Windows operating systems and Office productivity suite. The company is organized into three equally sized broad segments: productivity and business processes (legacy Microsoft Office, cloud-based Office 365, Exchange, SharePoint, Skype, LinkedIn, Dynamics), intelligence cloud (infrastructure- and platform-as-a-service offerings Azure, Windows Server OS, SQL Server), and more personal computing (Windows Client, Xbox, Bing search, display advertising, and Surface laptops, tablets, and desktops).
Stock Forecast FAQ
In the current month, MSFT has received 37 Buy ratings 5 Hold ratings, and 0 Sell ratings. The MSFT average analyst price target in the past 3 months is $508.55.
-
Where Will Microsoft Stock Be In 1 Year?
According to analysts, the consensus estimate is that Microsoft share price will rise to $508.55 per share over the next 12 months.
-
What Do Analysts Say About Microsoft?
Analysts are divided on their view about Microsoft share price and where it will be in the next 12 months. The majority of analysts rate the stock a Buy. However, a smaller subset of analysts suggest that Microsoft is a Sell and believe this share price will drop from its current level to $420.00.
-
What Is Microsoft's Price Target?
The price target for Microsoft over the next 1-year time period is forecast to be $508.55 according to 42 Wall Street analysts, 37 of them rate the stock a Buy, 0 rate the stock a Sell, and 5 analysts rate the stock a Hold.
-
Is MSFT A Buy, Sell Or Hold?
According to Wall Street analysts, the consensus rating for Microsoft is a Buy. 37 of 42 analysts rate the stock a Buy at this time.
-
How Can I Buy Shares Of MSFT?
You can purchase shares of Microsoft via an online brokerage firm such as TD Ameritrade.com, thinkorswim.com, e-trade.com, TastyTrade.com, or Schwab.com. Many other digital online brokerages exist such as RobinHood and Webull where you can purchase Microsoft shares.
-
What Is The Microsoft Share Price Today?
Microsoft was last trading at $424.00 per share. This represents the most recent stock quote for Microsoft. Yesterday, Microsoft closed at $430.53 per share.
-
How To Buy Microsoft Stock Online?
In order to purchase Microsoft stock online, open a brokerage account, deposit funds into the account, and select an order type to purchase shares whether it be market or limit.
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