Explain this page
Arphra AIPlain-English read on Microsoft Corporation’s valuationRatios & metrics
Profitability, returns on capital, growth, and credit — all derived from the historical income statement, balance sheet, and cash flow rows in our data warehouse.
Valuation multiples
Price- and EV-based multiples plus shareholder yields. Snapshot at each fiscal year-end from key_metrics (FMP).
ActualEstimate
| In USD | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | 2026E | 2027E | 2028E | 2029E |
|---|---|---|---|---|---|---|---|---|---|
| Headline | |||||||||
| Market cap | — | — | — | $3.39T | $3.7T | — | — | — | — |
| Enterprise value | — | — | — | $3.47T | $3.78T | — | — | — | — |
| Multiples | |||||||||
| P / E | — | — | — | — | — | — | — | — | — |
| P / B | — | — | — | — | — | — | — | — | — |
| EV / EBITDA | — | — | — | — | — | — | — | — | — |
| EV / Sales | — | — | — | 14.17 | 13.41 | — | — | — | — |
| EV / FCF | — | — | — | 46.89 | 52.77 | — | — | — | — |
| Yields | |||||||||
| Earnings yield | — | — | — | +2.60% | +2.75% | — | — | — | — |
| Free cash flow yield | — | — | — | +2.18% | +1.94% | — | — | — | — |
| Dividend yield | — | — | — | — | — | — | — | — | — |
Profitability
Margin structure across the last 5 fiscal years
ActualEstimate
| In USD | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | 2026E | 2027E | 2028E | 2029E |
|---|---|---|---|---|---|---|---|---|---|
| Margins | |||||||||
| Gross margin | +68.93% | +68.40% | +68.92% | +69.76% | +68.82% | +67.55% | +70.00% | +70.97% | +69.77% |
| Operating margin | +41.59% | +42.06% | +41.77% | +44.64% | +45.62% | +43.26% | +44.61% | +44.19% | +45.19% |
| EBITDA margin | +50.65% | +50.56% | +49.61% | +54.26% | +56.85% | +54.75% | +53.93% | +55.01% | +55.12% |
| EBIT margin | +43.70% | +43.26% | +43.07% | +45.17% | +44.73% | +43.52% | +43.39% | +45.46% | +44.80% |
| Pre-tax margin | +42.30% | +42.22% | +42.14% | +43.97% | +43.88% | +44.04% | +44.24% | +43.82% | +43.43% |
| Net margin | +36.45% | +36.69% | +34.15% | +35.96% | +36.15% | +34.64% | +34.68% | +36.39% | +35.68% |
| Cost structure | |||||||||
| Cost of revenue / sales | +31.07% | +31.60% | +31.08% | +30.24% | +31.18% | +30.25% | +30.46% | +31.39% | +30.32% |
| R&D intensity | +12.32% | +12.36% | +12.83% | +12.04% | +11.53% | +12.09% | +11.98% | +12.12% | +12.00% |
| SG&A intensity | +15.01% | +13.98% | +14.31% | +13.08% | +11.67% | +13.20% | +13.30% | +12.91% | +12.86% |
| Effective tax rate | +13.83% | +13.11% | +18.98% | +18.23% | +17.63% | +17.89% | +18.09% | +18.22% | +18.59% |
Returns on capital
ROE / ROA / ROC / ROIC over the relevant capital base, plus the 3-step DuPont decomposition of ROE.
ActualEstimate
| In USD | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | 2026E | 2027E | 2028E | 2029E |
|---|---|---|---|---|---|---|---|---|---|
| Returns | |||||||||
| Return on equity (ROE) | +43.15% | +43.68% | +35.09% | +32.83% | +29.65% | +31.15% | +31.24% | +32.44% | +33.31% |
| Return on assets (ROA) | +18.36% | +19.94% | +17.56% | +17.21% | +16.45% | +16.38% | +16.94% | +17.20% | +17.25% |
| Return on capital (ROC) | +31.18% | +34.04% | +30.99% | +29.87% | +28.21% | +28.90% | +29.53% | +29.40% | +31.02% |
| Return on invested capital (ROIC) | +27.32% | +29.70% | +25.33% | +24.06% | +22.35% | +23.14% | +22.96% | +24.21% | +24.49% |
| Asset turnover | +50.36% | +54.34% | +51.44% | +47.86% | +45.51% | +47.29% | +48.85% | +47.26% | +48.36% |
| DuPont · ROE decomposition | |||||||||
| Net margin | +36.45% | +36.69% | +34.15% | +35.96% | +36.15% | +34.64% | +34.68% | +36.39% | +35.68% |
| Asset turnover (× revenue / assets) | +50.36% | +54.34% | +51.44% | +47.86% | +45.51% | +47.29% | +48.85% | +47.26% | +48.36% |
| Equity multiplier (× assets / equity) | +235.08% | +219.07% | +199.77% | +190.77% | +180.22% | +190.20% | +184.43% | +188.63% | +193.07% |
Activity & efficiency
Turnover ratios and days-outstanding — how efficiently the business converts assets and working capital into sales and cash.
ActualEstimate
| In USD | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | 2026E | 2027E | 2028E | 2029E |
|---|---|---|---|---|---|---|---|---|---|
| Turnover | |||||||||
| Asset turnover | 0.50 | 0.54 | 0.51 | 0.48 | 0.46 | 0.47 | 0.49 | 0.47 | 0.48 |
| Fixed-asset turnover | 2.37 | 2.26 | 1.93 | 1.59 | 1.23 | — | — | — | — |
| Inventory turnover | 19.81 | 16.74 | 26.35 | 59.48 | 93.64 | — | — | — | — |
| Receivables turnover | 4.42 | 4.48 | 4.35 | 4.31 | 4.03 | — | — | — | — |
| Payables turnover | 3.44 | 3.30 | 3.64 | 3.37 | 3.17 | — | — | — | — |
| Days outstanding | |||||||||
| Days sales outstanding (DSO) | 82.61 | 81.48 | 83.86 | 84.76 | 90.57 | — | — | — | — |
| Days inventory outstanding (DIO) | 18.42 | 21.80 | 13.85 | 6.14 | 3.90 | — | — | — | — |
| Days payables outstanding (DPO) | 105.96 | 110.69 | 100.28 | 108.33 | 115.21 | — | — | — | — |
| Cash conversion cycle | -4.93 | -7.41 | -2.56 | -17.43 | -20.75 | — | — | — | — |
Cash flow quality
How well reported earnings translate into operating and free cash flow, plus reinvestment intensity.
ActualEstimate
| In USD | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | 2026E | 2027E | 2028E | 2029E |
|---|---|---|---|---|---|---|---|---|---|
| Operating CF / Net income | 1.25 | 1.22 | 1.21 | 1.35 | 1.34 | 1.35 | 1.29 | 1.30 | 1.26 |
| FCF / Net income | 0.92 | 0.90 | 0.82 | 0.84 | 0.70 | 0.83 | 0.82 | 0.78 | 0.80 |
| FCF margin | +33.39% | +32.86% | +28.07% | +30.22% | +25.42% | +28.73% | +28.30% | +28.34% | +28.62% |
| OCF margin | +45.65% | +44.91% | +41.33% | +48.36% | +48.33% | +46.65% | +44.64% | +47.36% | +45.12% |
| CapEx / Revenue | +12.27% | +12.05% | +13.26% | +18.14% | +22.91% | +18.62% | +18.11% | +18.05% | +17.94% |
| CapEx / D&A | 1.76 | 1.65 | 2.03 | 2.00 | 1.89 | — | — | — | — |
| Stock-based comp / Revenue | +3.64% | +3.78% | +4.54% | +4.38% | +4.25% | — | — | — | — |
Per-share & shareholder yield
EPS, book value, sales, cash flow and dividends per share — plus payout / retention.
ActualEstimate
| In USD | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | 2026E | 2027E | 2028E | 2029E |
|---|---|---|---|---|---|---|---|---|---|
| EPS · diluted | 8.05 | 9.65 | 9.68 | 11.80 | 13.64 | 16.81 | 19.44 | 22.83 | 27.02 |
| EPS · basic | 8.12 | 9.70 | 9.72 | 11.86 | 13.70 | 17.04 | 19.50 | 22.84 | 27.18 |
| Book value / share | 18.66 | 22.09 | 27.60 | 35.95 | 46.01 | 48.67 | 57.46 | 68.15 | 78.04 |
| Tangible BV / share | 11.10 | 11.63 | 17.26 | 16.29 | 26.97 | 48.67 | 57.46 | 68.15 | 78.04 |
| Sales / share | 22.09 | 26.30 | 28.36 | 32.82 | 37.74 | 43.77 | 51.77 | 60.74 | 72.86 |
| Operating CF / share | 10.09 | 11.81 | 11.72 | 15.87 | 18.24 | 20.42 | 23.11 | 28.77 | 32.87 |
| Free cash flow / share | 7.38 | 8.64 | 7.96 | 9.92 | 9.59 | 12.58 | 14.65 | 17.21 | 20.85 |
| Dividends / share | 2.17 | 2.41 | 2.65 | 2.91 | 3.23 | 3.83 | 4.67 | 5.42 | 6.67 |
| Payout ratio | +26.96% | +24.93% | +27.36% | +24.70% | +23.65% | +25.25% | +26.04% | +24.51% | +25.67% |
| Retention ratio | +73.04% | +75.07% | +72.64% | +75.30% | +76.35% | +74.75% | +73.96% | +75.49% | +74.33% |
Growth
Year-over-year change for headline P&L lines, plus through-cycle CAGR
ActualEstimate
| In USD | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | 2026E | 2027E | 2028E | 2029E | 8y CAGR |
|---|---|---|---|---|---|---|---|---|---|---|
| Top-line | ||||||||||
| Revenue · YoY | — | +17.96% | +6.88% | +15.67% | +14.93% | +16.94% | +16.68% | +18.26% | +18.62% | +15.69% |
| Gross profit · YoY | — | +17.06% | +7.69% | +17.09% | +13.38% | +14.77% | +20.92% | +19.89% | +16.61% | +15.86% |
| Profit | ||||||||||
| Operating income · YoY | — | +19.26% | +6.16% | +23.62% | +17.45% | +10.89% | +20.31% | +17.14% | +21.33% | +16.89% |
| EBITDA · YoY | — | +17.74% | +4.89% | +26.51% | +20.42% | +12.61% | +14.93% | +20.64% | +18.85% | +16.92% |
| Net income · YoY | — | +18.72% | -0.52% | +21.80% | +15.54% | +12.05% | +16.82% | +24.10% | +16.30% | +15.38% |
| Operating | ||||||||||
| EBIT · YoY | — | +16.79% | +6.41% | +21.30% | +13.81% | +13.77% | +16.34% | +23.91% | +16.89% | +16.05% |
| R&D · YoY | — | +18.32% | +10.95% | +8.51% | +10.09% | +22.57% | +15.67% | +19.62% | +17.46% | +15.30% |
| Per-share | ||||||||||
| EPS · diluted · YoY | — | +19.88% | +0.31% | +21.90% | +15.59% | +23.22% | +15.64% | +17.46% | +18.35% | +16.34% |
| EPS · basic · YoY | — | +19.46% | +0.21% | +22.02% | +15.51% | +24.39% | +14.43% | +17.14% | +18.98% | +16.30% |
Credit & leverage
Balance-sheet health + interest coverage + liquidity. Coverage ratios use period-end debt and trailing interest expense.
ActualEstimate
| In USD | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | 2026E | 2027E | 2028E | 2029E |
|---|---|---|---|---|---|---|---|---|---|
| Leverage | |||||||||
| Total debt | $82.28B | $78.4B | $79.44B | $97.85B | $112.18B | $126.92B | $153.95B | $173.28B | $208.06B |
| Net debt | $68.05B | $64.47B | $44.74B | $79.54B | $81.94B | $89.38B | $109.49B | $120.06B | $144.78B |
| Net debt / EBITDA | 0.80 | 0.64 | 0.43 | 0.60 | 0.51 | 0.50 | 0.53 | 0.48 | 0.49 |
| Debt / equity | 0.58 | 0.47 | 0.39 | 0.36 | 0.33 | 0.35 | 0.36 | 0.34 | 0.36 |
| Debt / assets | +24.65% | +21.49% | +19.28% | +19.11% | +18.12% | +18.22% | +19.56% | +18.01% | +18.66% |
| Equity / assets | +42.54% | +45.65% | +50.06% | +52.42% | +55.49% | +52.58% | +54.22% | +53.01% | +51.80% |
| Coverage | |||||||||
| EBITDA / interest expense | 36.29 | 48.59 | 53.42 | 45.32 | 67.16 | 55.20 | 56.08 | 54.87 | 56.21 |
| Operating income / interest | 29.80 | 40.42 | 44.98 | 37.29 | 53.89 | 43.62 | 46.39 | 44.07 | 46.09 |
| Interest expense | $2.35B | $2.06B | $1.97B | $2.94B | $2.39B | $3.27B | $3.7B | $4.56B | $5.29B |
| Liquidity | |||||||||
| Current ratio | 2.08 | 1.78 | 1.77 | 1.27 | 1.35 | — | — | — | — |
| Quick ratio | 1.90 | 1.57 | 1.54 | 1.06 | 1.16 | — | — | — | — |
| Cash ratio | 0.16 | 0.15 | 0.33 | 0.15 | 0.21 | — | — | — | — |
| Working capital | $95.75B | $74.6B | $80.11B | $34.45B | $49.91B | — | — | — | — |
| Working capital / revenue | +56.96% | +37.63% | +37.80% | +14.05% | +17.72% | — | — | — | — |
Sourced from key_metrics + financial_ratios (loaded by load_fundamentals_extended.py).
Valuation
| Metric | FY 2025 | FY 2024 |
|---|---|---|
| P / E | — | — |
| P / B | — | — |
| EV / EBITDA | — | — |
| EV / Sales | 13.41x | 14.17x |
| Earnings yield | 2.8% | 2.6% |
| FCF yield | 1.9% | 2.2% |
Returns
| Metric | FY 2025 | FY 2024 |
|---|---|---|
| Gross margin | — | — |
| Operating margin | — | — |
| Net margin | — | — |
| ROE | 29.6% | 32.8% |
| ROA | 16.5% | 17.2% |
| ROIC | 21.6% | 22.3% |
Leverage & liquidity
| Metric | FY 2025 | FY 2024 |
|---|---|---|
| Debt / equity | — | — |
| Net debt / EBITDA | 0.51 | 0.60 |
| Interest coverage | — | — |
| Current ratio | 1.35x | 1.27x |
| Quick ratio | — | — |
Methodology. ROE / ROA / ROC use period-end balance-sheet denominators (no average-of- period smoothing). ROIC = Operating Income × (1 − inferred effective tax rate) over invested capital, with the effective tax inferred from net-to-operating income when both are positive and a 25% default otherwise. Net debt / EBITDA, debt ratios, and interest-coverage ratios are calculated point-in-time at each fiscal year-end. TTM = trailing 4 quarters (income / cash flow summed, balance sheet = most-recent quarterly snapshot). Through-cycle CAGR in the Growth panel uses the geometric mean of first-to-last period growth across the window (positive values only).