MICROSOFT CORP
$523.88
+0.88 (+0.17%) · delayed · Nov 13, 2026
Five-year price
52w $349.20 to $559.15
- Market cap
- $3.89T
- Enterprise value
- $3.91T
- P/E
- 29.2×
- 36.2× on 3y avg EPS
- EV / EBIT
- 25.2×
- FCF yield
- 1.7%
- ROIC
- 27.1%
- Debt / equity
- 0.09
- Piotroski F
- 6/9
Value scorecard · FY2026
Does it pass the value tests?
Quality
83
- ●ROIC > 12% (5y avg)5y avg ROIC 31.1%
- ●ROE > 15% (5y avg)5y avg ROE 34.3%
- ●Stable operating marginsMargin volatility 2.0% (σ, 5y)
- ○Earnings convert to cashFCF / net income 75% (5y avg)
- ●Growing revenueRevenue CAGR 5y 14.6%
- ●Shrinking share countDiluted shares -2.0% over 5y
Value
0
- ○P/E below 15P/E 29.2
- ○EV/EBIT below 12EV/EBIT 25.2
- ○FCF yield above 6%FCF yield 1.7%
- ○Price below Graham NumberGraham Number $155.11
- ○P/B below 3P/B 8.8
Safety
80
- ●Debt / equity below 0.5D/E 0.09
- ●Debt payable in < 4 yrs of earningsNet debt $19.4B
- ●Interest coverage > 8xCoverage 50.9x
- ○Current ratio > 1.5Current ratio 1.23
- ●Piotroski F-score ≥ 6F-score 6/9
Graham Defensive
57
- ●Adequate size (revenue > $2B)Revenue $331.8B
- ○Strong condition (current ratio ≥ 2)Current ratio 1.23
- ●Earnings stability (no loss, 10y)10 years of data
- ●Uninterrupted dividendsDividends paid every year on record
- ●Earnings growth ≥ 33% (10y, 3y avgs)EPS growth 316%
- ○Moderate P/E (≤ 15 on 3y avg EPS)P/E (3y avg) 36.2
- ○P/E × P/B ≤ 22.5Product 318.5
Valuation lab
What do you have to believe?
At $523.88, the market is pricing in about 19.9% annual free-cash-flow growth for the next decade (9% discount rate, 2.5% terminal growth).
Starting cash flow
Net debt $19.4B · 7426M shares · 5y revenue CAGR 14.6%
Intrinsic value
$363.03
Price
$523.88
Premium paid
44%
What the price implies
The market is paying for 19.9% annual cash-flow growth for 10 years at a 9.0% discount rate.
Terminal value share
66% of the value sits beyond year 10.
Financial statements
A decade of the record.
USD millions · fiscal years · source: SEC 10-K XBRL
| Line item | FY17 | FY18 | FY19 | FY20 | FY21 | FY22 | FY23 | FY24 | FY25 | FY26 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | 96,571 | 110,360 | 125,843 | 143,015 | 168,088 | 198,270 | 211,915 | 245,122 | 281,724 | 331,839 |
| Gross profit | 62,310 | 72,007 | 82,933 | 96,937 | 115,856 | 135,620 | 146,052 | 171,008 | 193,893 | 225,465 |
| Operating income | 29,025 | 35,058 | 42,959 | 52,959 | 69,916 | 83,383 | 88,523 | 109,433 | 128,528 | 155,237 |
| Operating margin | 30.1% | 31.8% | 34.1% | 37.0% | 41.6% | 42.1% | 41.8% | 44.6% | 45.6% | 46.8% |
| Pre-tax income | 29,901 | 36,474 | 43,688 | 53,036 | 71,102 | 83,716 | 89,311 | 107,787 | 123,627 | 165,934 |
| Income tax | 4,412 | 19,903 | 4,448 | 8,755 | 9,831 | 10,978 | 16,950 | 19,651 | 21,795 | 32,185 |
| Net income | 25,489 | 16,571 | 39,240 | 44,281 | 61,271 | 72,738 | 72,361 | 88,136 | 101,832 | 133,749 |
| EPS (diluted) | 3.25 | 2.13 | 5.06 | 5.76 | 8.05 | 9.65 | 9.68 | 11.80 | 13.64 | 17.95 |
| Diluted shares | 7,832 | 7,794 | 7,753 | 7,683 | 7,608 | 7,540 | 7,472 | 7,469 | 7,465 | 7,453 |
Who owns it
Superinvestors
Filings wire