Microsoft Valuation

MSF Stock  EUR 389.45  0.15  0.04%   
At this time, the firm appears to be undervalued. Microsoft secures a last-minute Real Value of €415.38 per share. The latest price of the firm is €389.45. Our model forecasts the value of Microsoft from analyzing the firm fundamentals such as Profit Margin of 0.33 %, current valuation of 1.69 T, and Return On Equity of 0.39 as well as examining its technical indicators and probability of bankruptcy. In general, most investors recommend locking in undervalued stocks and disposing overvalued stocks since, at some point, asset prices and their ongoing real values will merge together.
Undervalued
Today
389.45
Please note that Microsoft's price fluctuation is very steady at this time. Calculation of the real value of Microsoft is based on 3 months time horizon. Increasing Microsoft's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for Microsoft is useful when determining the fair value of the Microsoft stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Microsoft. Since Microsoft is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Microsoft Stock. However, Microsoft's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value.
Historical Market  389.45 Real  415.38 Hype  389.45 Naive  389.43
The real value of Microsoft Stock, also known as its intrinsic value, is the underlying worth of Microsoft Company, which is reflected in its stock price. It is based on Microsoft's financial performance, assets, liabilities, growth prospects, management team, or industry conditions. The intrinsic value of Microsoft's stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence Microsoft's stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
350.51
Downside
415.38
Real Value
416.66
Upside
Estimating the potential upside or downside of Microsoft helps investors to forecast how Microsoft stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Microsoft more accurately as focusing exclusively on Microsoft's fundamentals will not take into account other important factors:
Bollinger
Band Projection (param)
LowerMiddle BandUpper
365.88382.23398.59
Details
Hype
Prediction
LowEstimatedHigh
388.17389.45390.73
Details
Naive
Forecast
LowNext ValueHigh
388.15389.43390.72
Details

Microsoft Valuation Ratios as Compared to Competition

Comparative valuation techniques use various fundamental indicators to help in determining Microsoft's current stock value. Our valuation model uses many indicators to compare Microsoft value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Microsoft competition to find correlations between indicators driving Microsoft's intrinsic value. More Info.
Microsoft is regarded fourth in last dividend paid category among related companies. It is rated below average in beta category among related companies totaling about  0.35  of Beta per Last Dividend Paid. The ratio of Last Dividend Paid to Beta for Microsoft is roughly  2.84 . Comparative valuation analysis is a catch-all model that can be used if you cannot value Microsoft by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Microsoft's Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Microsoft's earnings, one of the primary drivers of an investment's value.
Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates Microsoft's worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in Microsoft and how it compares across the competition.

About Microsoft Valuation

The stock valuation mechanism determines the current worth of Microsoft on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Microsoft. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Microsoft based exclusively on its fundamental and basic technical indicators. By analyzing Microsoft's financials, quarterly and monthly indicators, and its related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Microsoft's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Microsoft. We calculate exposure to Microsoft's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Microsoft's related companies.
Microsoft Corporation develops, licenses, and supports software, services, devices, and solutions worldwide. Microsoft Corporation was founded in 1975 and is headquartered in Redmond, Washington. MICROSOFT operates under SoftwareInfrastructure classification in Germany and is traded on Frankfurt Stock Exchange. It employs 181000 people.

8 Steps to conduct Microsoft's Valuation Analysis

Company's valuation is the process of determining the worth of any company in monetary terms. It estimates Microsoft's potential worth based on factors such as financial performance, market conditions, growth prospects, and overall economic environment. The result of company valuation is a single number representing a Company's current market value. This value can be used as a benchmark for various financial transactions such as mergers and acquisitions, initial public offerings (IPOs), or private equity investments. To conduct Microsoft's valuation analysis, follow these 8 steps:
  • Gather financial information: Obtain Microsoft's financial statements, including balance sheets, income statements, and cash flow statements.
  • Determine Microsoft's revenue streams: Identify Microsoft's primary sources of revenue, including products or services offered, target markets, and pricing strategies.
  • Analyze market data: Research Microsoft's industry and market trends, including the size of the market, growth rate, and competition.
  • Establish Microsoft's growth potential: Evaluate Microsoft's management, business model, and growth potential.
  • Determine Microsoft's financial performance: Analyze its financial statements to assess its historical performance and future potential.
  • Choose a valuation method: Consider the Company's specific circumstances and choose an appropriate valuation method, such as the discounted cash flow (DCF) or comparable analysis method.
  • Calculate the value: Apply the chosen valuation method to the financial information and market data to calculate Microsoft's estimated value.
  • Review and adjust: Review the results and make necessary adjustments, considering any relevant factors that may have been missed or overlooked.
Note: This is a general outline, and different approaches and methods may be used depending on the type and size of the company being valued. We also recomment to seek professional assistance to ensure accuracy.
When determining whether Microsoft is a good investment, qualitative aspects like company management, corporate governance, and ethical practices play a significant role. A comparison with peer companies also provides context and helps to understand if Microsoft Stock is undervalued or overvalued. This multi-faceted approach, blending both quantitative and qualitative analysis, forms a solid foundation for making an informed investment decision about Microsoft Stock. Highlighted below are key reports to facilitate an investment decision about Microsoft Stock:
Check out Correlation Analysis to better understand how to build diversified portfolios, which includes a position in Microsoft. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in board of governors.
For more detail on how to invest in Microsoft Stock please use our How to Invest in Microsoft guide.
You can also try the Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.

Complementary Tools for Microsoft Stock analysis

When running Microsoft's price analysis, check to measure Microsoft's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Microsoft is operating at the current time. Most of Microsoft's value examination focuses on studying past and present price action to predict the probability of Microsoft's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Microsoft's price. Additionally, you may evaluate how the addition of Microsoft to your portfolios can decrease your overall portfolio volatility.
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Please note, there is a significant difference between Microsoft's value and its price as these two are different measures arrived at by different means. Investors typically determine if Microsoft is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Microsoft's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.