-6.18%
-2.32%
-4.06%
-1.88%
1.57%
33.45%
140.18%
AI Spotlight on MSFT
Company Description
Microsoft Corporation develops, licenses, and supports software, services, devices, and solutions worldwide.The company operates in three segments: Productivity and Business Processes, Intelligent Cloud, and More Personal Computing.The Productivity and Business Processes segment offers Office, Exchange, SharePoint, Microsoft Teams, Office 365 Security and Compliance, Microsoft Viva, and Skype for Business; Skype, Outlook.com, OneDrive, and LinkedIn; and Dynamics 365, a set of cloud-based and on-premises business solutions for organizations and enterprise divisions.
The Intelligent Cloud segment licenses SQL, Windows Servers, Visual Studio, System Center, and related Client Access Licenses; GitHub that provides a collaboration platform and code hosting service for developers; Nuance provides healthcare and enterprise AI solutions; and Azure, a cloud platform.It also offers enterprise support, Microsoft consulting, and nuance professional services to assist customers in developing, deploying, and managing Microsoft server and desktop solutions; and training and certification on Microsoft products.The More Personal Computing segment provides Windows original equipment manufacturer (OEM) licensing and other non-volume licensing of the Windows operating system; Windows Commercial, such as volume licensing of the Windows operating system, Windows cloud services, and other Windows commercial offerings; patent licensing; and Windows Internet of Things.
It also offers Surface, PC accessories, PCs, tablets, gaming and entertainment consoles, and other devices; Gaming, including Xbox hardware, and Xbox content and services; video games and third-party video game royalties; and Search, including Bing and Microsoft advertising.The company sells its products through OEMs, distributors, and resellers; and directly through digital marketplaces, online stores, and retail stores.Microsoft Corporation was founded in 1975 and is headquartered in Redmond, Washington.
Market Data
| Last Price | 414.99 |
| Change Percentage | -6.18% |
| Open | 418.48 |
| Previous Close | 442.33 |
| Market Cap ( Millions) | 3085401 |
| Volume | 54218011 |
| Year High | 468.35 |
| Year Low | 385.58 |
| M A 50 | 431.59 |
| M A 200 | 425.75 |
Financial Ratios
| FCF Yield | 2.27% |
| Dividend Yield | 0.74% |
| ROE | 33.36% |
| Debt / Equity | 20.56% |
| Net Debt / EBIDTA | 32.47% |
| Price To Book | 10.19 |
| Price Earnings Ratio | 33.27 |
| Price To FCF | 44.06 |
| Price To sales | 11.79 |
| EV / EBITDA | 22.72 |
News
- Jan -30 - Trade Tracker: Kevin Simpson sells covered calls on Microsoft
- Jan -30 - Microsoft Q2: Focus On Commercial Cloud Booking Growth
- Jan -30 - I Avoided Dividend Stocks for Years, But These 2 Trends Have Changed My Mind
- Jan -30 - Amazon AI-Powered AWS Boom: Can It Outshine Microsoft Azure?
- Jan -30 - Microsoft signs massive carbon credit deal with reforestation startup Chestnut Carbon
- Jan -30 - Microsoft and Meta Have a DeepSeek Strategy: Copy and Surpass
- Jan -30 - Buy Meta, skip Microsoft, Paul Meeks discusses
- Jan -30 - SoftBank in Talks to Invest Up to $25 Billion in OpenAI
- Jan -30 - Microsoft's Q2 AI Business Soars but Cloud, Guidance Disappoint
- Jan -30 - SoftBank reportedly in talks to invest up to $25B in OpenAI
- Jan -30 - Tech stocks mixed as Meta, Microsoft affirm big AI spending plans after DeepSeek turmoil
- Jan -30 - Microsoft Stock Is Now in a Correction -- Is This a Buying Opportunity?
- Jan -30 - S&P 500: Tech Stocks Struggle as Microsoft Drops, Meta and Tesla Shine
- Jan -30 - Microsoft's Azure cloud growth slows due to traditional cloud business weakness
- Jan -30 - SoftBank to invest as much as $25B into OpenAI to become firm's largest backer: report
- Jan -30 - Microsoft Q2 Earnings & Revenues Beat on Surging AI Business
- Jan -30 - Meta Vs. Microsoft: Can Their AI Infrastructure Plans Hold Up Against DeepSeek?
- Jan -30 - Microsoft stock slumps 5% on disappointing revenue outlook
- Jan -30 - Microsoft's Q2 Earnings Beat Fails to Impress: ETFs to Watch
- Jan -30 - TSLA, MSFT and META Forecast – Major Technology Stocks React to Earnings
Business Breakdown
Expected Mid-Term Growth
Segment n°1 -> Intelligent Cloud
Expected Growth : 25.46 %
What the company do ?
Microsoft's Intelligent Cloud is a suite of cloud-based services, including Azure, Dynamics 365, and Microsoft 365, that leverage AI, machine learning, and data analytics to drive business innovation and transformation.
Why we expect these perspectives ?
Microsoft's Intelligent Cloud segment growth of 25.46% is driven by increasing adoption of Azure cloud services, strong demand for hybrid cloud solutions, and growing traction of AI and machine learning-based offerings. Additionally, the company's strategic partnerships, expanding global footprint, and continued innovation in cloud computing are contributing to its rapid growth.
Segment n°2 -> Productivity and Business Processes
Expected Growth : 10.55 %
What the company do ?
Productivity and Business Processes from Microsoft Corporation refers to the segment that includes Office, Dynamics, and LinkedIn, offering software and services for productivity, communication, and business operations.
Why we expect these perspectives ?
Microsoft's 10.55% growth in Productivity and Business Processes is driven by increasing adoption of cloud-based productivity tools like Office 365, growing demand for Microsoft Teams, and expanding customer base in Dynamics 365. Additionally, strategic acquisitions and investments in AI, machine learning, and cybersecurity have enhanced the company's offerings, leading to increased revenue.
Segment n°3 -> More Personal Computing
Expected Growth : 4.8 %
What the company do ?
More Personal Computing is Microsoft's vision for a future where devices, including Windows PCs, tablets, and smartphones, are more personal, intuitive, and connected.
Why we expect these perspectives ?
The 4.8% growth in More Personal Computing segment is driven by increasing demand for Windows 10, strong sales of Surface laptops and tablets, and a growing gaming market led by Xbox. Additionally, the shift to remote work and learn-from-home trends have boosted PC sales, contributing to the segment's growth.
Microsoft Corporation Products
| Product Range | What is it ? |
|---|---|
| Azure | Microsoft Azure is a cloud computing platform and set of services that enables users to build, deploy, and manage applications and services through Microsoft-managed data centers across the globe. |
| Microsoft 365 | Microsoft 365 is a bundle of software and services that includes Windows 10, Office 365, and Enterprise Mobility + Security, designed to provide a secure and productive computing environment. |
| Dynamics 365 | Dynamics 365 is a line of enterprise resource planning (ERP) and customer relationship management (CRM) software applications, designed to help businesses manage their financial, supply chain, and customer relationships. |
| Visual Studio | Visual Studio is a suite of integrated development environment (IDE) products that provide a comprehensive set of tools for software development, testing, and debugging. |
| Xbox | Xbox is a line of video game consoles, including the Xbox One, Xbox Series X, and Xbox Series S, designed to provide an immersive gaming experience. |
| LinkedIn Learning (formerly Lynda.com) | LinkedIn Learning is an online learning platform that provides video courses and tutorials on a wide range of topics, including business, technology, and creative skills. |
| Microsoft Office | Microsoft Office is a suite of productivity software applications, including Word, Excel, PowerPoint, and Outlook, designed to help users create, edit, and manage documents, spreadsheets, and presentations. |
| Power Platform | Power Platform is a low-code development environment that enables users to create custom business applications, including Power Apps, Power Automate (formerly Microsoft Flow), and Power BI. |
| Windows | Windows is a family of operating systems, including Windows 10, Windows Server, and Windows IoT, designed to provide a secure and reliable computing environment. |
Microsoft Corporation's Porter Forces
Threat Of Substitutes
Microsoft's products and services have a high degree of differentiation, making it difficult for substitutes to emerge. Additionally, the company's strong brand recognition and customer loyalty also reduce the threat of substitutes.
Bargaining Power Of Customers
Microsoft's customers have some bargaining power due to the availability of alternative products and services. However, the company's strong brand recognition and customer loyalty, as well as its ability to offer a wide range of products and services, reduce the bargaining power of customers.
Bargaining Power Of Suppliers
Microsoft has a diverse supplier base, which reduces the bargaining power of individual suppliers. Additionally, the company's strong financial position and ability to negotiate contracts also reduce the bargaining power of suppliers.
Threat Of New Entrants
The threat of new entrants is low due to the high barriers to entry in the technology industry. Microsoft's strong brand recognition, customer loyalty, and significant investments in research and development make it difficult for new entrants to compete.
Intensity Of Rivalry
The technology industry is highly competitive, and Microsoft faces intense rivalry from established players such as Apple, Google, and Amazon. The company must continually innovate and invest in research and development to maintain its competitive position.
Capital Structure
| Value | |
|---|---|
| Debt Weight | 22.53% |
| Debt Cost | 4.28% |
| Equity Weight | 77.47% |
| Equity Cost | 8.50% |
| WACC | 7.55% |
| Leverage | 29.08% |
Microsoft Corporation : Quality Control
Microsoft Corporation passed 7 out of 9 key points:
Historical Valuation
Price/Earnings Ratio
Margin Valuation
Peers Valuation
Competitors
| Company | Rational |
|---|---|
| ORCL | Oracle Corporation offers products and services that address enterprise information technology environments worldwide. Its Oracle cloud software as a service offering include various cloud software applications, including Oracle Fusion cloud … |
| SNPS | Synopsys, Inc. provides electronic design automation software products used to design and test integrated circuits. The company offers Fusion Design Platform that provides digital design implementation solutions; Verification Continuum Platform … |
| FTNT | Fortinet, Inc. provides broad, integrated, and automated cybersecurity solutions in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. It offers FortiGate hardware and software licenses that provide … |
| ADBE | Adobe Inc. operates as a diversified software company worldwide. It operates through three segments: Digital Media, Digital Experience, and Publishing and Advertising. The Digital Media segment offers products, services, and … |
| CRWD | CrowdStrike Holdings, Inc. provides cloud-delivered protection across endpoints and cloud workloads, identity, and data. It offers threat intelligence, managed security services, IT operations management, threat hunting, Zero Trust identity protection, … |
Peers Metrics
DCF BETA
Expected Cash-Flows
Scoring Insights
Peers Group Analysis
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Microsoft
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Oracle
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Adobe
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