Stocks · Technology

Microsoft Corporation (MSFT)

$534.27

+0.31% last session

Market value

$3.96tn

P/E ratio

29.0

Dividend yield

0.79%

52-week range

$349–$554

What Microsoft Corporation does

Microsoft Corporation is a prominent global technology firm that invents, markets, and provides ongoing assistance for a diverse range of software, digital services, computing devices, and comprehensive solutions. Its operations are organized into three primary divisions: Productivity and Business Processes, Intelligent Cloud, and More Personal Computing. The Productivity and Business Processes segment delivers crucial tools for both enterprises and individual users.

Technology · based in the US · listed since 1986Biggest source of revenue: Server Products And Cloud Services (39%) · breakdownCompany website ↗

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tap a grade for the details

AGrowthGrowing fast

Sales growth, last 12 months17.8% · 89/100

Sales growth a year, 5 years14.6% · 81/100

Earnings per share growth a year, 5 years17.4% · 88/100

AProfitabilityHighly profitable

Net profit margin40.3% · 100/100

Return on equity33% · 98/100

Return on capital, 10-year average56.7% · 100/100

AFinancial strengthRock solid

Net debt ÷ operating profitmore cash than debt · 96/100

Interest cover51× · 100/100

Current ratio (short-term assets ÷ debts)1.23 · 72/100

DValuationLooks expensive

P/E against its own 10-year history45th percentile · 55/100

Free cash flow yield1.7% · 29/100

PEG (P/E ÷ growth)1.7 · 60/100

Our base-case value vs price−53% · 5/100

BMomentumRising

Share price, last 12 months0.8% · 51/100

Share price, last 3 months37.4% · 100/100

Price

+0.5% over 1Y

27 Oct 2026$534.24

Daily closing prices. Source: Twelve Data.

Bull vs bear

The numbers lean bullish (15 vs 8)

The bull case

Very high returns on capital●●●

Averages 57% after tax, a sign of a durable advantage (a 'moat').

A proven grower●●○

Revenue up 13.8% a year for 10 years.

Profit per share compounding●●○

Earnings per share up 21.5% a year.

Margins widening●●○

Operating margin up from 41.8% to 46.8% in three years.

Shareholder-friendly management●●○

Passes 5 of 6 capital-allocation checks.

Cash machine●○○

Turns 20% of revenue into free cash flow.

The bear case

Priced above even our optimistic case●●●

The price is 21% above our bull case.

Heavy share-based pay●●○

$12.4bn in 2026: 3.7% of revenue, 18.5% of free cash flow. It's a real cost even though no cash leaves

A lot has to go right●●○

Today's price implies only about 5.9% a year on our base case.

Recoveries can take years●○○

Took 92 months to recover after the 1999 fall.

Can you answer every bear point? Put your answers in your thesis under risks.

See the full picture on Microsoft Corporation

Ten years of results, revenue by product and region, a management scorecard, bear/base/bull valuations, analyst targets, every SEC filing explained, and a thesis that checks itself after each report. Free.

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Microsoft Corporation (MSFT)

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Bull vs bear iLearn

See the full picture on Microsoft Corporation

Bull vs bear iLearn

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Bull vs bear

Bull vs bear

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