Microsoft Stock Analysis, Valuation (NASDAQ:MSFT)

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$109.56 $1.35 (1.25%) MSFT stock closing price Aug 14, 2018 (Closing)

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 4/5

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 Year Over Year (YoY) revenue growth for Microsoft was 29% in 2018-06.
  • The TTM operating margin was good at 31.77 for Microsoft.
  • Net margins stood at a healthy 15% (average) for Microsoft in the Trailing Twelve Months.
  • Microsoft's return on invested capital of 26.5 is good.
  • The LTM ROE of 20.6 for Microsoft is attractive.
  • The company has a healthy free cash flow margin of 24.7.

Should you sell MSFT stock?

  • With a debt/equity ratio of 0.99, Microsoft is highly leveraged in comparison to Computer and Technology peers.
  • The company is trading at a price to sales multiple of 7.6, which is higher in comparison to the Computer and Technology sector average of 3, 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.