Stock Analysis
Microsoft CorpMSFT
P/E 31.37×· 5Y range 21.01–45.30×· 38th percentile of history
Sector: Technology · Industry: Software—Application
AnalystsStrong Buy69 analystsP/E 31.4× sits at the 38th percentile of its 5.0978781656399725-year history.
Cash covers 60% of debt · FY 2026.
PMP Verdict
High quality, fairly valued
Strengths
- Profitability95
- Financial Health82
Strong fundamentals at a reasonable valuation.
Market context
-1.9% today· Z 2.1σ
Bull Case
- ✓Altman Z 9.2 — safe-zone balance sheet
- ✓ROE 28.3% — efficient capital deployment
- ✓Revenue CAGR 13.7% — durable top-line growth
- ✓Interest coverage 891.8× — debt well covered
What's happening with MSFT
Profile
Strong moat, profitability, financial health, growth and earnings quality; valuation lags behind.
How is each axis scored?
- Valuation35/100 · Weak
- P/E vs own history (38th pct)20/25
- FCF yield (1.9%)5/25
- P/S (12.3x)5/25
- EV/EBIT (26.6x)5/25
- Growth80/100 · Strong
- Revenue CAGR (13.7%)20/25
- Net income CAGR (16.4%)20/25
- EPS CAGR 5Y (16.8%)20/25
- Fwd implied growth (29.2%)20/25
- Profitability95/100 · Strong
- ROIC (23.8%)20/25
- ROE (28.3%)25/25
- Net margin (39.3%)25/25
- Operating margin (46.8%)25/25
- Financial Health82/100 · Strong
- Altman Z (9.24)25/25
- Current ratio (1.23)12/25
- Interest coverage (891.8x)25/25
- Net cash / debt (D/A 7%)20/25
- Quality75/100 · Strong
- Piotroski F (6/9)15/25
- Beneish M (-3.29)25/25
- FCF conversion (58%)15/25
- Margin stability (σ 7.7%)20/25
- Moat100/100 · Strong
- ROIC >12% years (10/10 yrs)25/25
- Median gross margin (68.2%)25/25
- FCF-positive years (10/10 yrs)25/25
- Worst-year net margin (worst 15.0%)25/25
About Microsoft Corp
Microsoft develops and licenses consumer and enterprise software. Show more
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).
Headquarters: REDMOND, WA · Employees: 223,000 · Website ↗
Price History
Weekly Candlestick Chart — up to 5Y
Key Metrics
Financial snapshot · Tap any metric for its definition and grade
TTM Snapshot
trailing twelve months · YoYValuation
35DP/E (TTM)31.3xC
Grade C: ExpensivePrice / TTM EPS (own statements) — vs own 5Y history: 21.0x–45.3x · 38th pct
P/FCF59.4xD
Grade D: ExpensivePrice / Free Cash Flow per share (Finnhub). Inverse of FCF yield — negative when FCF is negative · Elevated investment — CapEx = 57% of operating cash flow, weighing on reported FCF
FCF Yield1.9%C
Grade C: LowTTM (OCF − CapEx) / Market Cap — vs own 5Y history: 1.8%–3.9% · 2nd pct · Elevated investment — CapEx = 57% of operating cash flow, weighing on reported FCF
P/S (TTM)12.30xD
Grade D: ExpensivePrice / TTM Revenue (own statements) — vs own 5Y history: 7.9x–16.0x · 56th pct
EV/EBIT26.6xD
Grade D: ExpensiveEnterprise value / TTM EBIT (D&A not in our data) — capital-structure neutral — vs own 5Y history: 17.3x–36.9x · 45th pct
EV/Sales12.3xD
Grade D: Very expensiveEnterprise Value / TTM Revenue (Finnhub) — capital-structure neutral sales multiple
Forward P/E24.2xB
Grade B: FairPrice / next-year EPS estimate — shows whether the TTM multiple is rich or just front-loading growth
P/B Ratio8.85xD
Grade D: Very expensivePrice to Book Value. Neg. equity = heavy buybacks
PEG Ratio1.67B
Grade B: FairFinnhub PEG — their P/E basis ÷ expected EPS growth. Suppressed when their P/E diverges >2× from our TTM P/E (different basis)
Dividend Yield0.66%A
Grade A: PaysTTM dividend yield (Finnhub) — annual dividends / price. None = no dividend; very high yield can signal distress
Payout Ratio19.8%A
Grade A: SafeDividends / Net Income (Finnhub) — share of earnings paid out; >90% or negative = unsustainable
Elevated investment: Elevated investment — CapEx = 57% of operating cash flow, weighing on reported FCF
Profitability
95A+ROIC23.8%A
Grade A: MoatNOPAT (EBIT less ~21% tax) / invested capital (equity + debt − cash). Flagship quality metric — durable >15% signals a moat
ROE28.3%A
Grade A: StrongReturn on Equity. Neg. equity = heavy buybacks
ROA19.4%A
Grade A: StrongReturn on Assets (Finnhub) — Net Income / Total Assets; how efficiently assets produce profit
Net Margin39.3%A
Grade A: HighNet Income / Revenue
Operating Margin46.8%A
Grade A: HighTTM EBIT / TTM Revenue
Gross Margin68.3%A
Grade A: PremiumGross Profit / Revenue
FCF Margin22.9%A
Grade A: HighFCF / Revenue · Elevated investment — CapEx = 57% of operating cash flow, weighing on reported FCF
True FCF Margin19.0%A
Grade A: HighTTM (OCF − CapEx − SBC) / TTM Revenue — SBC treated as a real cost · Elevated investment — CapEx = 57% of operating cash flow, weighing on reported FCF
Growth
80ARevenue CAGR13.7%C
Grade C: OkCompound annual revenue growth (up to 5Y depending on data availability)
Net Income CAGR16.4%A
Grade A: HighCompound annual net income growth (up to 5Y depending on data availability)
EPS CAGR (5Y)16.8%A
Grade A: HighCompound annual EPS growth over up to 5Y of per-share earnings (own statements). Null when either endpoint EPS ≤ 0
Implied EPS Growth29.2%C
Grade C: MedAnalyst forward EPS (normalized basis) vs our GAAP TTM EPS — different bases, so extreme values usually mark cyclically depressed TTM earnings, not real growth
Dilution (5Y)-2.4%A
Grade A: BuybacksShare count change over 5Y
SBC / Net Income9.9%A
Grade A: LowStock-based comp/Net income. >30% = dilution risk
SBC / Revenue3.9%C
Grade C: MedTTM stock-based comp / TTM Revenue
Financial Health
82AAltman Z-Score9.24A
Grade A: SafeBankruptcy risk. >3 Safe, <1.8 Distress
Current Ratio1.23xC
Grade C: OkCurrent Assets/Liabilities
Quick Ratio1.22xA
Grade A: High(Current Assets − Inventory) / Current Liabilities (Finnhub) — stricter liquidity test, excludes inventory
Interest Coverage891.8xA
Grade A: StrongEBIT/Interest. >10 Strong
Debt Repayment0.7yA
Grade A: FastYears to repay net debt via FCF · Elevated investment — CapEx = 57% of operating cash flow, weighing on reported FCF
Net Debt/EBIT0.3xA
Grade A: LowLeverage. <2x Low, >4x High
Debt/Equity0.29xA
Grade A: LowDebt / Equity: <1 Conservative, >2 Risky. Not meaningful with non-positive equity; shown as unavailable rather than low debt.
Cash / Debt0.60xC
Grade C: PartialCash covers how much of total debt. >1 = could repay all debt from cash
Quality
75B+Piotroski F-Score6/9C
Grade C: AverageFinancial strength 0–9. >7 Strong
Beneish M-Score-3.29A
Grade A: SafeEarnings manipulation risk. < -2.22 Safe
FCF Conversion58.2%C
Grade C: AverageFCF / Net Income · Elevated investment — CapEx = 57% of operating cash flow, weighing on reported FCF
Margin Stability7.7%A
Grade A: StableEBIT margin std deviation. Lower = stable
Capex / Revenue30.5%D
Grade D: HeavyTTM CapEx / TTM Revenue — high % = capital-hungry business
Asset Turnover0.48xD
Grade D: LowRevenue / Total Assets (Finnhub) — how efficiently the asset base generates sales
Insider Transactions
SEC Form 4 · 8 recordsP/S codes are the directional signal; grants, option exercises and tax withholding carry none. Form 4 doesn't flag 10b5-1 plans — scheduled sales may appear within open-market sells.
| Trade date | Insider | Transaction | Shares | Filed |
|---|---|---|---|---|
Hood Amy Filed | Hood Amy | SellOpen market sale | -991 | |
Hood Amy Filed | Hood Amy | SellOpen market sale | -2927 | |
Hood Amy Filed | Hood Amy | SellOpen market sale | -3387 | |
Coleman Amy Filed | Coleman Amy | Grant / award | +6.5K | |
Coleman Amy Filed | Coleman Amy | Tax withholding | -36 |
Show 3 more filingsShow fewer filings
| Trade date | Insider | Transaction | Shares | Filed |
|---|---|---|---|---|
Numoto Takeshi Filed | Numoto Takeshi | Grant / award | +11.6K | |
Althoff Judson Filed | Althoff Judson | Grant / award | +29.1K | |
Jolla Alice L. Filed | Jolla Alice L. | Tax withholding | -123 |
More metrics — Moat, Per Share, Balance Sheet, MarketHide additional metrics
Moat
100A+ROIC >12% Years10/10 yrsA
Grade A: DurableShare of completed fiscal years with ROIC > 12% — measures multi-year capital-return durability
Gross Margin (Med.)68.2%A
Grade A: DurableMedian annual gross margin across available fiscal years — pricing-power durability
FCF-Positive Years10/10 yrsA
Grade A: DurableShare of completed fiscal years with positive free cash flow
Net Margin Floor15.0%A
Grade A: DurableWeakest annual net margin across completed fiscal years — recession/downcycle resilience
Per Share
EPS (TTM)$16.86
Own TTM net income / shares — same earnings basis as P/E
Cash / Share$10.35
Cash & short-term investments per share (Finnhub)
Book Value / Share$59.56
Shareholders' equity per share (Finnhub). Negative = accumulated losses / heavy buybacks
Balance Sheet
Total Debt$128.81B
Total debt obligations (short + long term)
Cash & Equiv.$76.84B
Cash and short-term investments
Net Debt$51.97B
Total Debt minus Cash. Negative = Net Cash position
Total Equity$442.39B
Shareholders' equity (book value)
Asset / Liability2.40xA
Grade A: SolidTotal Assets / Total Liabilities
Market
Market Cap$3.91T
Current Market Capitalization
Beta1.06B
Grade B: MarketPrice sensitivity vs the market (Finnhub) — 1.0 moves with market, >1.2 amplifies swings
How grades work: each metric is graded A–D against fixed thresholds (tap a row for the meaning). Card grades map the pillar score to A+–E — a card grade is that pillar's own score, not an average of the rows shown.
Financials as of Jun 2026 · Ratio snapshot Oct 17, 2026
Key Insights: Microsoft Corp (MSFT)
MSFT is down 1.93% at the last close. Piotroski F-Score of 6/9 indicates mixed fundamentals for Microsoft Corp. Altman Z-Score of 9.24 sits comfortably in the safe zone (≥ 2.99), indicating low bankruptcy risk. Beneish M-Score of -3.29 suggests a low likelihood of earnings manipulation.
- Microsoft Corp converts about 23% of revenue into free cash flow — strong cash generation.
- Takes ~0.7 years to repay net debt from free cash flow.
- Return on equity of 28.3% is well above the market average.
See how MSFT ranks on the Capex Tracker — top 50 capital spenders compared.
Recent Market Moves
See all MSFT moves →| Date | Session | Price | Move | Z-Score |
|---|---|---|---|---|
| Oct 16 | Regular | 525.87 | -2.52% | -2.32 |
| Oct 16 | After-hours | 527.15 | -2.28% | -2.14 |
| Oct 14 | After-hours | 531.96 | -2.11% | -2.17 |
| Sep 25 | Regular | 515.96 | +3.62% | 2.68 |
| Sep 25 | After-hours | 517.82 | +4.00% | 2.95 |
Frequently Asked Questions about MSFT
What is the current Microsoft Corp (MSFT) stock price?
MSFT is trading at $529.05 at the last market close, down 1.93% on the session. PreMarketPrice tracks MSFT pre-market, intraday and after-hours prices.
Is MSFT stock a buy right now?
PreMarketPrice's quantitative model rates Microsoft Corp's financial health at 82/100. This is a data-driven snapshot of fundamentals, not investment advice.
Is MSFT stock overvalued?
Microsoft Corp trades at a trailing P/E of 31.3 and our valuation score rates it 35/100 (higher = cheaper vs. its own history). See the Valuation History and Key Metrics sections for forward P/E, EV/EBITDA and PEG context.
When does Microsoft Corp report earnings?
No confirmed earnings date is currently scheduled for MSFT. The Earnings section lists recent reports and updates as dates are announced.
What sector does Microsoft Corp operate in?
Microsoft Corp operates in the Technology sector, within the Software—Application industry. The Related Stocks section lists sector peers for comparison.
What does Microsoft Corp do?
Microsoft develops and licenses consumer and enterprise software.
About Microsoft Corp (MSFT) Stock
Microsoft Corp (MSFT) is a US-listed stock operating in the Technology sector, specifically the Software—Application industry. As of the latest update, Microsoft Corp is trading at $529.05, down 1.93% on the day with a market capitalization of $3.91 trillion. The financial health score for MSFT is 82/100, which indicates excellent financial strength based on profitability, leverage, liquidity, and growth metrics. This page provides real-time pre-market pricing, earnings calendar, financial health analysis, and valuation metrics for MSFT stock.
MSFT Stock Analysis & Key Metrics
On PreMarketPrice, you can track Microsoft Corp (MSFT) across multiple dimensions:
- Pre-market price & movement: Real-time MSFT stock price with percentage change, updated continuously during pre-market and regular trading hours.
- Valuation & P/E history: Historical P/E, P/S, and P/B ratios for MSFT with trend analysis and normalized valuation multiples.
- Financial statements: Revenue, net income, assets, liabilities, and equity for Microsoft Corp across multiple reporting periods.
- Financial health score: A composite score of 82/100 based on Altman Z-Score, Piotroski F-Score, profitability, and leverage metrics for MSFT.
- Sector peers: Compare MSFT against 6 other technology stocks on key financial metrics.
Is MSFT a Good Stock to Buy?
This page provides data-driven analysis to help you evaluate Microsoft Corp (MSFT) as an investment. The financial health score of 82/100 suggests excellent financial fundamentals. Valuation metrics show whether the stock is trading above or below its historical average.However, this is not financial advice — always do your own research before investing.
Data on this page is sourced from real-time market feeds, Polygon.io, and Finnhub.Microsoft Corp (MSFT) trades on NYSE/NASDAQ. Pre-market trading occurs 4:00 AM – 9:30 AM ET. Regular market hours are 9:30 AM – 4:00 PM ET.