(MSFT) Microsoft - Overview
Exchange: NASDAQ •
Country: United States •
Currency: USD •
Type: Common Stock •
ISIN: US5949181045
Stock: Operating System, Cloud Services, Office Suite, Gaming Platform, Search Engine
Total Rating 53
Risk 85
Buy Signal -0.96
EPS (Earnings per Share)
Revenue
Dividends
| Dividend Yield | 0.73% |
| Yield on Cost 5y | 1.85% |
| Yield CAGR 5y | 10.27% |
| Payout Consistency | 94.2% |
| Payout Ratio | 18.1% |
| Risk 5d forecast | |
|---|---|
| Volatility | 38.6% |
| Relative Tail Risk | -2.88% |
| Reward TTM | |
|---|---|
| Sharpe Ratio | -0.14 |
| Alpha | -16.48 |
| Character TTM | |
|---|---|
| Beta | 0.880 |
| Beta Downside | 0.706 |
| Drawdowns 3y | |
|---|---|
| Max DD | 27.24% |
| CAGR/Max DD | 0.59 |
Description: MSFT Microsoft January 28, 2026
Microsoft Corporation (NASDAQ: MSFT) is a diversified technology firm that builds and supports software, cloud services, devices, and integrated solutions worldwide. Its three operating segments are Productivity & Business Processes (Microsoft 365, Teams, LinkedIn, Dynamics 365), Intelligent Cloud (Azure, GitHub, server products, enterprise services) and Personal Computing (Windows OEM licensing, Surface hardware, Xbox gaming, Bing/Edge advertising). The company distributes its offerings through OEMs, distributors, retail and online channels.
Key recent metrics (FY 2025, released July 2025): total revenue $226.3 billion (+8% YoY), operating income $84.3 billion, Azure revenue grew ~30% YoY, Microsoft 365 commercial seats reached ≈ 345 million, LinkedIn revenue $12.3 billion (+11% YoY), and Gaming revenue $9.2 billion (+5% YoY). Sector-wide drivers include a 6% annual increase in corporate IT spend and a 35% YoY rise in AI-enabled cloud services, both of which underpin Microsoft’s strong AI-Copilot rollout across its product suite.
For a deeper quantitative dive, consider checking ValueRay’s sector-level valuation models.
Piotroski VR‑10 (Strict, 0-10) 6.5
| Net Income: 119.26b TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.12 > 0.02 and ΔFCF/TA -1.48 > 1.0 |
| NWC/Revenue: 16.43% < 20% (prev 14.59%; Δ 1.84% < -1%) |
| CFO/TA 0.24 > 3% & CFO 160.51b > Net Income 119.26b |
| Net Debt (33.31b) to EBITDA (191.38b): 0.17 < 3 |
| Current Ratio: 1.39 > 1.5 & < 3 |
| Outstanding Shares: last quarter (7.46b) vs 12m ago -0.11% < -2% |
| Gross Margin: 68.59% > 18% (prev 0.69%; Δ 6789 % > 0.5%) |
| Asset Turnover: 50.94% > 50% (prev 49.04%; Δ 1.91% > 0%) |
| Interest Coverage Ratio: 56.44 > 6 (EBITDA TTM 191.38b / Interest Expense TTM 2.64b) |
Altman Z'' 5.04
| A: 0.08 (Total Current Assets 180.19b - Total Current Liabilities 130.00b) / Total Assets 665.30b |
| B: 0.42 (Retained Earnings 280.79b / Total Assets 665.30b) |
| C: 0.25 (EBIT TTM 149.18b / Avg Total Assets 599.60b) |
| D: 1.42 (Book Value of Equity 390.88b / Total Liabilities 274.43b) |
| Altman-Z'' Score: 5.04 = AAA |
Beneish M -3.07
| DSRI: 1.01 (Receivables 56.53b/48.19b, Revenue 305.45b/261.80b) |
| GMI: 1.01 (GM 68.59% / 69.41%) |
| AQI: 0.81 (AQ_t 0.30 / AQ_t-1 0.37) |
| SGI: 1.17 (Revenue 305.45b / 261.80b) |
| TATA: -0.06 (NI 119.26b - CFO 160.51b) / TA 665.30b) |
| Beneish M-Score: -3.07 (Cap -4..+1) = AA |
What is the price of MSFT shares?
As of February 07, 2026, the stock is trading at USD 401.14 with a total of 53,515,311 shares traded.
Over the past week, the price has changed by -6.77%, over one month by -16.17%, over three months by -19.15% and over the past year by -2.82%.
Over the past week, the price has changed by -6.77%, over one month by -16.17%, over three months by -19.15% and over the past year by -2.82%.
Is MSFT a buy, sell or hold?
Microsoft has received a consensus analysts rating of 4.59.
Therefore, it is recommended to buy MSFT.
- StrongBuy: 41
- Buy: 15
- Hold: 5
- Sell: 0
- StrongSell: 0
What are the forecasts/targets for the MSFT price?
| Issuer | Target | Up/Down from current |
|---|---|---|
| Wallstreet Target Price | 605.5 | 50.9% |
| Analysts Target Price | 605.5 | 50.9% |
| ValueRay Target Price | 415.4 | 3.6% |
MSFT Fundamental Data Overview January 31, 2026
P/E Trailing = 27.0938
P/E Forward = 26.9542
P/S = 10.5385
P/B = 8.2354
P/EG = 1.7545
Revenue TTM = 305.45b USD
EBIT TTM = 149.18b USD
EBITDA TTM = 191.38b USD
Long Term Debt = 35.42b USD (from longTermDebt, last quarter)
Short Term Debt = 4.84b USD (from shortTermDebt, last quarter)
Debt = 57.61b USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 33.31b USD (from netDebt column, last quarter)
Enterprise Value = 3187.16b USD (3219.01b + Debt 57.61b - CCE 89.46b)
Interest Coverage Ratio = 56.44 (Ebit TTM 149.18b / Interest Expense TTM 2.64b)
EV/FCF = 41.17x (Enterprise Value 3187.16b / FCF TTM 77.41b)
FCF Yield = 2.43% (FCF TTM 77.41b / Enterprise Value 3187.16b)
FCF Margin = 25.34% (FCF TTM 77.41b / Revenue TTM 305.45b)
Net Margin = 39.04% (Net Income TTM 119.26b / Revenue TTM 305.45b)
Gross Margin = 68.59% ((Revenue TTM 305.45b - Cost of Revenue TTM 95.95b) / Revenue TTM)
Gross Margin QoQ = 68.04% (prev 69.05%)
Tobins Q-Ratio = 4.79 (Enterprise Value 3187.16b / Total Assets 665.30b)
Interest Expense / Debt = 1.28% (Interest Expense 736.0m / Debt 57.61b)
Taxrate = 20.29% (9.79b / 48.25b)
NOPAT = 118.92b (EBIT 149.18b * (1 - 20.29%))
Current Ratio = 1.39 (Total Current Assets 180.19b / Total Current Liabilities 130.00b)
Debt / Equity = 0.15 (Debt 57.61b / totalStockholderEquity, last quarter 390.88b)
Debt / EBITDA = 0.17 (Net Debt 33.31b / EBITDA 191.38b)
Debt / FCF = 0.43 (Net Debt 33.31b / FCF TTM 77.41b)
Total Stockholder Equity = 354.83b (last 4 quarters mean from totalStockholderEquity)
RoA = 19.89% (Net Income 119.26b / Total Assets 665.30b)
RoE = 33.61% (Net Income TTM 119.26b / Total Stockholder Equity 354.83b)
RoCE = 38.23% (EBIT 149.18b / Capital Employed (Equity 354.83b + L.T.Debt 35.42b))
RoIC = 29.94% (NOPAT 118.92b / Invested Capital 397.21b)
WACC = 9.02% (E(3219.01b)/V(3276.62b) * Re(9.16%) + D(57.61b)/V(3276.62b) * Rd(1.28%) * (1-Tc(0.20)))
Discount Rate = 9.16% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: -81.65 | Cagr: -0.05%
[DCF Debug] Terminal Value 75.27% ; FCFF base≈74.46b ; Y1≈78.29b ; Y5≈91.65b
Fair Price DCF = 174.7 (EV 1330.33b - Net Debt 33.31b = Equity 1297.01b / Shares 7.43b; r=9.02% [WACC]; 5y FCF grow 5.60% → 2.90% )
EPS Correlation: 96.80 | EPS CAGR: 25.22% | SUE: 4.0 | # QB: 1
Revenue Correlation: 98.83 | Revenue CAGR: 14.22% | SUE: 0.58 | # QB: 0
EPS next Quarter (2026-03-31): EPS=4.07 | Chg30d=+0.155 | Revisions Net=-1 | Analysts=30
EPS current Year (2026-06-30): EPS=17.12 | Chg30d=+1.419 | Revisions Net=+3 | Growth EPS=+25.5% | Growth Revenue=+16.4%
EPS next Year (2027-06-30): EPS=19.04 | Chg30d=+0.445 | Revisions Net=+1 | Growth EPS=+11.3% | Growth Revenue=+15.2%
P/E Forward = 26.9542
P/S = 10.5385
P/B = 8.2354
P/EG = 1.7545
Revenue TTM = 305.45b USD
EBIT TTM = 149.18b USD
EBITDA TTM = 191.38b USD
Long Term Debt = 35.42b USD (from longTermDebt, last quarter)
Short Term Debt = 4.84b USD (from shortTermDebt, last quarter)
Debt = 57.61b USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 33.31b USD (from netDebt column, last quarter)
Enterprise Value = 3187.16b USD (3219.01b + Debt 57.61b - CCE 89.46b)
Interest Coverage Ratio = 56.44 (Ebit TTM 149.18b / Interest Expense TTM 2.64b)
EV/FCF = 41.17x (Enterprise Value 3187.16b / FCF TTM 77.41b)
FCF Yield = 2.43% (FCF TTM 77.41b / Enterprise Value 3187.16b)
FCF Margin = 25.34% (FCF TTM 77.41b / Revenue TTM 305.45b)
Net Margin = 39.04% (Net Income TTM 119.26b / Revenue TTM 305.45b)
Gross Margin = 68.59% ((Revenue TTM 305.45b - Cost of Revenue TTM 95.95b) / Revenue TTM)
Gross Margin QoQ = 68.04% (prev 69.05%)
Tobins Q-Ratio = 4.79 (Enterprise Value 3187.16b / Total Assets 665.30b)
Interest Expense / Debt = 1.28% (Interest Expense 736.0m / Debt 57.61b)
Taxrate = 20.29% (9.79b / 48.25b)
NOPAT = 118.92b (EBIT 149.18b * (1 - 20.29%))
Current Ratio = 1.39 (Total Current Assets 180.19b / Total Current Liabilities 130.00b)
Debt / Equity = 0.15 (Debt 57.61b / totalStockholderEquity, last quarter 390.88b)
Debt / EBITDA = 0.17 (Net Debt 33.31b / EBITDA 191.38b)
Debt / FCF = 0.43 (Net Debt 33.31b / FCF TTM 77.41b)
Total Stockholder Equity = 354.83b (last 4 quarters mean from totalStockholderEquity)
RoA = 19.89% (Net Income 119.26b / Total Assets 665.30b)
RoE = 33.61% (Net Income TTM 119.26b / Total Stockholder Equity 354.83b)
RoCE = 38.23% (EBIT 149.18b / Capital Employed (Equity 354.83b + L.T.Debt 35.42b))
RoIC = 29.94% (NOPAT 118.92b / Invested Capital 397.21b)
WACC = 9.02% (E(3219.01b)/V(3276.62b) * Re(9.16%) + D(57.61b)/V(3276.62b) * Rd(1.28%) * (1-Tc(0.20)))
Discount Rate = 9.16% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: -81.65 | Cagr: -0.05%
[DCF Debug] Terminal Value 75.27% ; FCFF base≈74.46b ; Y1≈78.29b ; Y5≈91.65b
Fair Price DCF = 174.7 (EV 1330.33b - Net Debt 33.31b = Equity 1297.01b / Shares 7.43b; r=9.02% [WACC]; 5y FCF grow 5.60% → 2.90% )
EPS Correlation: 96.80 | EPS CAGR: 25.22% | SUE: 4.0 | # QB: 1
Revenue Correlation: 98.83 | Revenue CAGR: 14.22% | SUE: 0.58 | # QB: 0
EPS next Quarter (2026-03-31): EPS=4.07 | Chg30d=+0.155 | Revisions Net=-1 | Analysts=30
EPS current Year (2026-06-30): EPS=17.12 | Chg30d=+1.419 | Revisions Net=+3 | Growth EPS=+25.5% | Growth Revenue=+16.4%
EPS next Year (2027-06-30): EPS=19.04 | Chg30d=+0.445 | Revisions Net=+1 | Growth EPS=+11.3% | Growth Revenue=+15.2%