Microsoft Corporation
Microsoft Corporation develops and supports software, services, devices, and solutions worldwide. The Productivity and Business Processes segment offers Microsoft 365 commercial, enterprise mobility + security, windows commercial, power BI, exchange, sharepoint, Microsoft teams, security and complia…
What to know about MSFT
Microsoft Corporation is a Technology company with a solid overall financial profile. It scores well on size and sentiment, but risk is worth keeping an eye on.
Should you consider MSFT?
Based on 31 financial metrics and sector comparison. Not financial advice.
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Microsoft Corporation is a Technology company with a solid overall financial profile — it ranks in the top quarter of its Technology peers (2 of 82).
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The business is both profitable and financially healthy — it keeps a good portion of what it earns and carries its debt comfortably.
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Valuation is in the middle of the pack — neither obviously cheap nor stretched.
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The company is growing at a reasonable pace — not the fastest, but consistently moving in the right direction.
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There is a small dividend (0.01%), but income-focused investors will likely find better yields elsewhere in the market.
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Volatility is close to the S&P 500 average — typical market swings, nothing unusual.
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Analyst sentiment is broadly positive and short interest is low — professionals who cover this stock are mostly optimistic about its near-term prospects.
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On balance the positives outweigh the concerns — worth a closer look if Technology fits your investment goals.
At a glance
How it scores
We look at 31 different financial metrics and group them into categories. Here's how MSFT compares to the other S&P 500 stocks.
Dive deeper — all 31 metrics 9 categories · valuation, growth, health, dividends & more Show all Hide
Valuation
Is the stock cheap or expensive relative to its earnings, sales, and assets? Lower multiples often mean better value.
| Metric | Value | vs S&P 500 |
|---|---|---|
| P/E Ratio (Trailing) | 22.61 | Above avg |
| Forward P/E | 19.61 | Average |
| PEG Ratio | 1.22 | Above avg |
| Price to Sales | 8.86 | Below avg |
| Price to Book | 6.80 | Average |
| EV/EBITDA | 16.12 | Average |
| Earnings Yield | 4.42% | Above avg |
Profitability
How efficiently does the company turn revenue into profit? Higher margins mean more money kept from each dollar earned.
| Metric | Value | vs S&P 500 |
|---|---|---|
| Gross Margin | 68.31% | Top 25% |
| Operating Margin | 46.33% | Top 25% |
| Net Profit Margin | 39.34% | Top 25% |
| Return on Equity | 34.01% | Top 25% |
| Return on Invested Capital | 14.81% | Top 25% |
Growth
How fast is the business expanding? Strong growth in revenue and earnings signals increasing market demand.
| Metric | Value | vs S&P 500 |
|---|---|---|
| Revenue Growth (YoY) | 18.30% | Top 25% |
| Revenue Growth (3Y CAGR) | 12.42% | Top 25% |
| EPS Growth (YoY) | 23.40% | Above avg |
| Free Cash Flow Growth | -3.32% | Average |
Health
Can the company cover its debts and obligations? A healthy balance sheet reduces the risk of financial trouble.
| Metric | Value | vs S&P 500 |
|---|---|---|
| Current Ratio | 1.28 | Above avg |
| Debt to Equity | 0.30 | Top 25% |
| Interest Coverage | 52.84 | Top 25% |
| Altman Z-Score | 7.90 | Top 25% |
Dividends
Does the company pay shareholders, and is that payment growing and sustainable?
| Metric | Value | vs S&P 500 |
|---|---|---|
| Dividend Yield | 0.92% | Below avg |
| Payout Ratio | 20.73% | Above avg |
| Dividend Growth (5Y) | -4.57% | Above avg |
Cash Flow
Is real cash flowing into the business — not just accounting profits? Strong cash flow funds growth and dividends.
| Metric | Value | vs S&P 500 |
|---|---|---|
| Free Cash Flow Yield | 2.59% | Average |
| OCF to Sales | 53.46% | Top 25% |
Risk
How volatile is the stock compared to the broader market? Lower beta and volatility mean a smoother ride.
| Metric | Value | vs S&P 500 |
|---|---|---|
| Beta (1-Year) | 1.10 | Average |
| Volatility (30-Day) | 34.03% | Average |
Sentiment
What do analysts and short-sellers think? High analyst ratings and low short interest signal broad confidence.
| Metric | Value | vs S&P 500 |
|---|---|---|
| Short % of Float | 1.19% | Top 25% |
| Avg. Analyst Rating | 1.34 | Top 25% |
| Target Upside % | 47.97% | Top 25% |
Size
How large is the company by market value? Size affects stability, growth potential, and index inclusion.
| Metric | Value | vs S&P 500 |
|---|---|---|
| Market Capitalization | 2.82T | Top 25% |
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