Obermatt

Microsoft

NSQ:MSFT · US5949181045
SoftwareXX-Large

360

74
EV / EBIT58
Price / Owner Earnings24
Owner Earnings Yield59
Dividend Yield93
Price/Sales18
EV / Gross Profit39
Price/Book33
Return on Capital89
Cash Return on Capital60
Return on Equity81
EBIT Margin96
Gross Profitability43
Cash Conversion26
Accruals24
Owner Earnings Margin68
Sales growth70
Profit Growth100
Long-Term EPS Growth58
Owner Earnings Growth16
Reinvestment95
Price momentum50
Debt load62
Refinancing56
Debt Payback38
Liquidity87
Analyst ratings71
Opinion Changes54
Price Target Upside65
Market mood77
Value Creation14/20strong value creator
  • Creates more value than its capital costs
  • Owner earnings growing
  • Owner earnings per share growing
  • Reinvests at strong returns
  • Solid earnings base

What this means

Microsoft generates returns well above its cost of capital, the foundation of durable shareholder value.

Profile

CountryUSA
IndustrySoftware
SizeXX-Large
TypePublic Company
ExchangeNASDAQGS
Founded1993
Employees287,411
ISINUS5949181045
Last UpdateApr 2, 2026
Themes
PaaSVirtual DesktopChatbotMachine LearningCloud ManagementGenAISoftware DevelopmentCloud Data ServicesArtificial IntelligenceCloud StorageCloud InfrastructureData Centers and FacilitiesBusiness DevelopmentEnterprise SoftwareFinancial ServicesVenture Capital

Description

Microsoft Corporation (Microsoft) is a technology company committed to making digital technology and artificial intelligence (‘AI’) available broadly and doing so responsibly. The company creates platforms and tools, powered by AI, that deliver inno…

Analysis

Middle-of-the-road

Microsoft Corporation is a middle-of-the-road business: neither the economics nor the price stand out from the peer group. One caution: reported profits have recently run ahead of actual cash, which we track closely.

The price is expensive. You pay 45.5× its owner earnings: the cash an owner could take out each year, which is in the historically expensive zone. At today's price, the market is assuming roughly 17% yearly growth; analysts expect 16%. The price, in other words, assumes less than the experts do.

The trajectory is moderate and the balance sheet is sturdy. The company scores 14/20 on our value-creation score: strong value creator.

What to watch: Reported profits have run ahead of actual cash for several periods. As always: this describes the company's numbers; it is not a recommendation.

360° rank · history

1007550250
100
2023202420252026

All-time high

100

Jun 2026

All-time low

82

Aug 2024

Average rank

96

across all years

Detailed & Historical Ranks

Deep dive into 15 detailed ranks and 3 years of history.

Current202520242023
Price/Sales
18
19
12
13
Price/Earnings
39
59
45
50
Price/Book
33
34
34
31
Dividend Yield
93
86
84
83
Value (overall)
64
72
47
43

Cells are coloured by rank band (red weak → green strong). Sentiment & 360° history begins 2023.

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Make Sense of the Ranks

Every rank runs 1–100 against true peers. Higher is always better.

360° View
1 · Watch OutGood· 100
Value
1 · ExpensiveGood Value· 100
Quality
1 · Weak FundamentalsHigh Quality· 100
Growth
1 · Tough TimesHigh Growth· 100
Safety
1 · High LeverageWell-Financed· 100
Sentiment
1 · SkepticismPositive· 100
Learn More →