Microsoft Stock Analysis, Valuation (NASDAQ:MSFT)

Add to My Stocks
$95.35 $0.35 (0.37%) MSFT stock closing price Apr 23, 2018 (Closing)
Watch Robo Advisor Video of MSFT Stock Analysis
Updated on : Apr 23, 2018
previous close
MSFT 95.4 (0%)
NASDAQ 7128.6 (0%)
Closing Price On: Apr 23, 2018
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Sector :
Computer and Technology
5 Quarter Revenue
Revenue Growth
Compared to the industry
Operating Profit
Operating Margin:
Sector Average:
5 Quarter Net Profit
Net Margins
LTM Margin
Compared to the industry
Debt/Equity Ratio
Debt/Equity Ratio:
Compared to the industry
Cash Flow
Operating cash flow:
Net Income:
Dividend Yield
MSFT dividend yield:
Operating Margins
Net Margins
FCF Margin
High Debt Burden
PS Valuation
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
Industry PS :
Sector:   Computer and Technology.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
Return on Equity:
Free Cash Flow Margin:
Double Tap To Exit Full Screen

Microsoft Stock Analysis

16764 11 7

Take a look at Amigobulls Microsoft stock analysis video. Our analyst opinion covering the buy and sell arguments for MSFT stock is shown in the video.

Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.

Microsoft Corporation Stock Rating 3.9/5

We at Amigobulls use various financial measures including profit margins, revenue growth and dividends for MSFT stock analysis. Microsoft valuation forms a crucial part of our stock analysis. Based on a company's historical fundamentals we arrive at Microsoft stock rating which is indicative of the company's financial performance.

Should you buy MSFT stock?

  • The TTM operating margin was good at 27.6% for Microsoft.
  • Net margins came in at average 11.7% for Microsoft over the last twelve months.
  • Microsoft has an attractive ROIC (Return on Invested Capital) of 21.2%
  • The LTM ROE of 15.3% for Microsoft is attractive.
  • Microsoft has a healthy FCF (Free Cash Flow) margin of 18.3%.

Should you sell MSFT stock?

  • With a debt/equity ratio of  1.21, Microsoft is highly leveraged in comparison to Computer and Technology peers.
  • The company is trading at a price to sales multiple of 7.4, which is higher in comparison to the Computer-Software industry average of 2.8, making MSFT stock expensive.

Comments on this video and Microsoft stock

Investors can make use of the Amigobulls Microsoft stock analysis to ascertain how MSFT stock fares in fundamental analysis investment criteria. Company's fundamentals remain one of the key driver of MSFT stock and helps investors in making good buy and sell decision.

While doing a study of the company financials, Microsoft revenue growth and profit or net income are two main metrics which help in identifying whether MSFT stock is overvalued or undervalued. Investors could make use of MSFT technical analysis to check whether the fundamental story is reflected in the market sentiment.