What is Microsoft Intrinsic Value: Projected FCF?
Since the intrinsic value calculations based on Discounted Cash Flow Intrinsic Value: DCF (FCF Based), or Discounted Earnings Intrinsic Value: DCF (Earnings Based) cannot be applied to companies without consistent revenue and earnings, GuruFocus developed a valuation model based on normalized Free Cash Flow and Book Value of the company. The details of how we calculate the intrinsic value of stocks are described in detail here.
As of today (2024-09-17), Microsoft's Intrinsic Value: Projected FCF is $138.73. The stock price of Microsoft is $435.28. Therefore, Microsoft's Price-to-Intrinsic-Value-Projected-FCF of today is 3.1.
The historical rank and industry rank for Microsoft's Intrinsic Value: Projected FCF or its related term are showing as below:
During the past 13 years, the highest Price-to-Intrinsic-Value-Projected-FCF of Microsoft was 3.42. The lowest was 1.04. And the median was 2.52.
Microsoft Intrinsic Value: Projected FCF Historical Data
The historical data trend for Microsoft's Intrinsic Value: Projected FCF can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
* Premium members only.
Microsoft Intrinsic Value: Projected FCF Chart
| Microsoft Annual Data | ||||||||||||||||||||
| Trend | Jun15 | Jun16 | Jun17 | Jun18 | Jun19 | Jun20 | Jun21 | Jun22 | Jun23 | Jun24 | ||||||||||
| Intrinsic Value: Projected FCF | Get a 7-Day Free Trial | 61.84 | 79.23 | 104.65 | 119.31 | 138.73 | ||||||||||||||
| Microsoft Quarterly Data | ||||||||||||||||||||
| Sep19 | Dec19 | Mar20 | Jun20 | Sep20 | Dec20 | Mar21 | Jun21 | Sep21 | Dec21 | Mar22 | Jun22 | Sep22 | Dec22 | Mar23 | Jun23 | Sep23 | Dec23 | Mar24 | Jun24 | |
| Intrinsic Value: Projected FCF | Get a 7-Day Free Trial | 119.31 | 124.73 | 126.14 | 132.65 | 138.73 | ||||||||||||||
Competitive Comparison of Microsoft's Intrinsic Value: Projected FCF
For the Software - Infrastructure subindustry, Microsoft's Price-to-Projected-FCF, along with its competitors' market caps and Price-to-Projected-FCF data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Microsoft's Price-to-Projected-FCF Distribution in the Software Industry
For the Software industry and Technology sector, Microsoft's Price-to-Projected-FCF distribution charts can be found below:
* The bar in red indicates where Microsoft's Price-to-Projected-FCF falls into.
Microsoft Intrinsic Value: Projected FCF Calculation
Since the intrinsic value calculations based on Discounted Cash Flow Intrinsic Value: DCF (FCF Based), or Discounted Earnings Intrinsic Value: DCF (Earnings Based) cannot be applied to companies without consistent revenue and earnings, GuruFocus developed a valuation model based on normalized Free Cash Flow and Book Value of the company.
The details of how we calculate the intrinsic value of stocks are described in detail here.
This method smooths out the free cash flow over the past 6-7 years, multiplies the results by a growth multiple, and adds a portion of Total Stockholders Equity.
Intrinsic Value: Projected FCF = ( Growth Multiple * Free Cash Flow (6 year avg) + 0.8 * Total Stockholders Equity (most recent) ) / Shares Outstanding (Diluted Average)
In the case of negative Total Stockholders Equity, the following formula is used (see Explanation section below for the reason):
Intrinsic Value: Projected FCF = ( Growth Multiple * Free Cash Flow (6 year avg) + Total Stockholders Equity (most recent) / 0.8 ) / Shares Outstanding (Diluted Average)
Add all the Free Cash Flow together and divide 6 will get Microsoft's Free Cash Flow(6 year avg) = $55,319.20.
Microsoft's Intrinsic Value: Projected FCF for today is calculated as
| Intrinsic Value: Projected FCF | = | (Growth Multiple | * | Free Cash Flow (6 year avg) | + | Total Stockholders Equity (Jun24) | * | 0.8) | / | Shares Outstanding (Diluted Average) |
| = | (14.862653310476 | * | 55319.2 | + | 268477 | * | 0.8) | / | 7475.000 | |
| = | 138.73 |
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Microsoft(NAS:MSFT) Intrinsic Value: Projected FCF Explanation
The growth multiple is capped between 8.35 and 17.74.
Total Stockholders Equity weighting is more art than science and it should always be revisited in more detail when researching a company. Weightings from 0% to 100% to more than 100% are possible. 80% was chosen as a happy median after taking the above ideas into consideration.
Microsoft's Price-to-Intrinsic-Value-Projected-FCF for today is calculated as
| Price-to-Intrinsic-Value-Projected-FCF | = | Share Price | / | Intrinsic Value: Projected FCF |
| = | 435.28 | / | 138.7253098345 | |
| = | 3.14 |
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Microsoft Intrinsic Value: Projected FCF Related Terms
Thank you for viewing the detailed overview of Microsoft's Intrinsic Value: Projected FCF provided by GuruFocus.com. Please click on the following links to see related term pages.
Microsoft Business Description
Industry
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Address
One Microsoft Way, Redmond, WA, USA, 98052-6399
Website
Microsoft develops and licenses consumer and enterprise software. It is known for its Windows operating systems and Office productivity suite. The company is organized into three equally sized broad segments: productivity and business processes (legacy Microsoft Office, cloud-based Office 365, Exchange, SharePoint, Skype, LinkedIn, Dynamics), intelligence cloud (infrastructure- and platform-as-a-service offerings Azure, Windows Server OS, SQL Server), and more personal computing (Windows Client, Xbox, Bing search, display advertising, and Surface laptops, tablets, and desktops).
Executives
| Kathleen T Hogan | officer: EVP, Human Resources | C/O MICROSOFT CORPORATION, ONE MICROSOFT WAY, REDMOND WA 98052-6399 |
| Judson Althoff | officer: EVP, Chief Commercial Officer | MICROSOFT CORPORATION, ONE MICROSOFT WAY, REDMOND WA 98052 |
| Satya Nadella | director, officer: Chief Executive Officer | C/O MICROSOFT CORPORATION, ONE MICROSOFT WAY, REDMOND WA 98052-6399 |
| Bradford L Smith | officer: Executive Vice President | MICROSOFT CORPORATION, ONE MICROSOFT WAY, REDMOND WA 98052-6399 |
| Teri List | director | 2200 PENNSYLVANIA AVENUE, SUITE 800W, WASHINGTON DC 20037 |
| Christopher C Capossela | officer: EVP, Chief Marketing Officer | C/O MICROSOFT CORPORATION, ONE MICROSOFT WAY, REDMOND WA 98052-6399 |
| Amy Hood | officer: Chief Financial Officer | C/O MICROSOFT CORPORATION, ONE MICROSOFT WAY, REDMOND WA 98052-6399 |
| Emma N Walmsley | director | C/O MICROSOFT CORPORATION, ONE MICROSOFT WAY, REDMOND WA 98052-6399 |
| Carlos A Rodriguez | director | 10200 SUNSET DRIVE, MIAMI FL 33173 |
| Christopher David Young | officer: EVP, Business Development | C/O MICROSOFT CORPORATION, ONE MICROSOFT WAY, REDMOND WA 98052-6399 |
| John W Stanton | director | 3650 131ST AVE SE #400, WESTERN WIRELESS CORP, BELLEVUE WA 98006 |
| Charles W Scharf | director | C/O VISA INC., 900 METRO CENTER BLVD., FOSTER CITY CA 94404 |
| Hugh F Johnston | director | PEPSICO, INC., 700 ANDERSON HILL ROAD, PURCHASE NY 10577 |
| Reid Hoffman | director | C/O LINKEDIN CORPORATION, 2029 STIERLIN COURT, MOUNTAIN VIEW CA 94043 |
| Sandra E Peterson | director | 100 PARSONS POND DRIVE, FRANKLIN LAKES NJ 07417 |
Microsoft Headlines
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