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Microsoft (MSFT): financial analysis & fundamentals

Information Technology Β· price $505 Β· market cap $3.75 T
In short β€” Microsoft trades at 28.1Γ— earnings (P/E), 21.4Γ— expected earnings, for a PEG of 0.89 and a net margin of 40%. Revenue growth 18%. Quick verdict: rather cheap given growth.

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πŸ”— Related pages on Microsoft β€” Are analysts right?  Β·  If I had invested  Β·  Dividend

Valuation & profitability

MetricValueWhat it means
P/E (price / earnings)28.1The higher, the more growth the market expects.
Forward P/E21.4On next year's expected earnings. Lower than current P/E = rising earnings.
PEG (P/E Γ· growth)0.89Below 1 = cheap given growth; above 2 = expensive.
Net margin40%Share of revenue that ends up as profit.
Revenue growth18%Pace of revenue growth.
Price-to-book8.5Price relative to book value.
Market cap$3.75 TTotal market value of the company.
Dividend yield0.93%Annual dividend ~$3.56/share relative to price.

Income statement (by year)

YearRevenueNet incomeNet margin
2023$211.9 B$72.4 B34%
2024$245.1 B$88.1 B36%
2025$281.7 B$101.8 B36%
2026$331.8 B$133.7 B40%

πŸ“Š Open the interactive Microsoft page (charts, live news) β†’

Frequently asked questions

Is Microsoft stock expensive?

Microsoft has a P/E of 28.1 (forward P/E 21.4) and a PEG of 0.89. A PEG below 1 is rather cheap given growth, above 2 is expensive. Verdict: rather cheap given growth.

What is Microsoft's net margin?

Microsoft's net margin is about 40% β€” the share of revenue that ends up as net profit.

What is Microsoft's revenue?

Latest known revenue: $331.8 B for net income of $133.7 B. The year-by-year breakdown is in the income statement above.

What is Microsoft's market cap?

Microsoft (MSFT) has a market cap of about $3.75 T.

Does Microsoft pay a dividend?

Yes: Microsoft pays about $3.56/share per year, i.e. roughly a 0.93% yield at the current price.

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⚠️ Educational information, not investment advice. Data: Yahoo Finance, recomputed by JPI Invest. A stock can be « cheap » for a bad reason.