Microsoft Corporation(MSFT) - Stock detail

Microsoft Corporation

US
MSFT
Microsoft Corporation(Listing date: 03/13/1986)

Microsoft Corporation was founded on April 4, 1975. The company develops and supports software, services, devices, and solutions to deliver new value to customers and help people and businesses realize their full potential. It offers a range of services, including cloud-based solutions that provide customers with software, services, platforms, and content, as well as solution support and consulting services. The company also delivers relevant online advertising to a global audience. Its products include operating systems; cross-device productivity applications; server applications; business solution applications; desktop and server management tools; software development tools; and video games. The company also designs, manufactures, and sells devices, including personal computers, tablets, gaming and entertainment consoles, other intelligent devices, and related accessories.

AI Value AnalystHold
Overall Rating7.3/10
Generated at:2026-04-17 17:42:09
Analysis based on real data from 5 financial reports covering periods: 2025-12-31, 2025-09-30, 2025-06-30, 2025-03-31, and 2024-12-31. Data includes company basic information, financial condition metrics, profitability indicators, and valuation calculations using the current stock price of $422.79.
Overview

Microsoft Corporation (MSFT) is a global technology leader with robust financial health, exceptional and accelerating profitability, and a dominant competitive position in growing markets like cloud and AI. The company exhibits outstanding fundamental strength, though its valuation is high but supported by its quality and growth trajectory.

Valuation
5/10
Profitability
9/10
Financial health
8/10
Operation Advice
  • Hold or accumulate on dips for long-term investors.
  • New investors might wait for a more attractive entry point as the stock is not significantly undervalued at the current level.
  • A fundamental-based target price range is $410 to $480, with the current price of $422.79 sitting near the midpoint.

Valuation

P/E TTM
24.98
P/E LYR
31.61
P/B MRQ
7.62
P/S TTM
--
AI Analysis
  • Valuation metrics are high but typical for a high-growth technology company. The stock is not cheap by traditional value metrics, with the current price within a reasonable valuation range based on its fundamentals and growth profile.
  • Forward P/E (Dynamic) is 31.61 based on future earnings estimates.
  • Trailing P/E (TTM) is 24.98 based on the last twelve months of actual earnings.
  • Price-to-Book (P/B) is 7.62, which is elevated but typical for a high-intangible-asset, high-ROE technology company.
  • Price-to-Sales (P/S) TTM is 19.75, reflecting the market's premium for Microsoft's consistent growth and dominant position.
  • The high P/E multiples suggest the market is pricing in significant future growth.
  • The recent acceleration in net income growth (35.74% in the last quarter) could justify a higher multiple.
  • The stock has traded between a low of $356.51 and a high of $483.74 over the provided 60-day period, with significant volatility.
  • The current price of $422.79 is towards the lower end of this recent range.
  • A reasonable P/E range based on its growth profile is 25x to 35x.
  • A fundamental-based target price range is $410 to $480, with the current price of $422.79 sitting near the midpoint.
Valuation trend

Profitability

ROE TTM
18.03%
Net margin
41.65%
Gross margin
68.53%
Total revenue
158.95B
AI Analysis
  • Microsoft demonstrates exceptional and improving profitability with strong revenue growth, industry-leading margins, and efficient returns on capital.
  • Revenue growth remains strong, with the latest quarter (Q2 2025) showing a 17.55% year-over-year increase in operating revenue to $158.95B.
  • Net Income Attributable to Shareholders surged 35.74% YoY to $66.20B, indicating significant operating leverage and cost efficiency.
  • The company maintains industry-leading margins.
  • The Gross Margin of 68.53% reflects the high-margin nature of its software and cloud services.
  • The Net Margin of 41.65% is exceptionally high, underscoring its pricing power and scalable business model.
  • Return on Equity (ROE) is 18.03% and Return on Assets (ROA) is 10.31% (TTM), indicating efficient use of shareholder equity and company assets to generate profits.
Profitability
2024Q42025Q12025Q22025Q32025Q4
ROE TTM--25.27%33.28%7.85%18.03%
Earnings
2024Q42025Q12025Q22025Q32025Q4
Total revenue135.22B205.28B281.72B77.67B158.95B

Financial health

Debt/Asset
41.25%
Current ratio
1.39
Quick ratio
1.38
Cash ratio
1.38
AI Analysis
  • Microsoft Corporation's financial health is robust, with solid liquidity, prudent leverage, and a very strong financial foundation providing stability and flexibility for future growth.
  • The Current Ratio of 1.39 and Quick Ratio of 1.38 indicate the company has sufficient short-term assets to cover its short-term liabilities.
  • The liquidity values are healthy for a technology company with strong recurring revenue streams.
  • An Asset-Liability Ratio (Debt to Assets) of 41.25% suggests a moderate and manageable level of debt.
  • Microsoft maintains a strong balance sheet, allowing it to fund investments, acquisitions, and shareholder returns without excessive financial risk.
  • The combination of solid liquidity and prudent leverage points to a very strong financial foundation.
  • This provides stability and flexibility for future growth initiatives.
Leverage
2024Q42025Q12025Q22025Q32025Q4
Debt/Asset43.30%42.79%44.51%42.94%41.25%
Liquidity
2024Q42025Q12025Q22025Q32025Q4
Current ratio1.351.371.351.401.39