Microsoft's stock now looks like ‘free money,' an analyst says. Here's why.
A Mizuho analyst thinks Wall Street is overreacting to the idea that Microsoft's cloud unit could lose OpenAI business down the road.
Fiscal Year: July - June
Microsoft Corporation (MSFT), listed on the NASDAQ, has a market capitalization of $. As of Oct 04, 2025, the stock is trading at $517.35 per share, offering investors a clear view of its current market value. Microsoft Corporation is a prominent player in the industry sector, attracting both institutional and retail investors due to its performance and potential.
With a P/E ratio of 37.93, investors can assess the stock's valuation in comparison to its earnings. A P/E ratio is a crucial indicator for value investors, showing whether the stock is over or undervalued relative to its current earnings. Microsoft Corporation also offers a dividend yield of 0.64%, making it an attractive option for income-focused investors who seek regular dividends.
Our Discounted Cash Flow (DCF) analysis reveals that Microsoft Corporation (MSFT) may be overvalued compared to its intrinsic worth. However, to see the exact DCF fair value, please Login or Upgrade for access.
The proprietary SS Score for Microsoft Corporation is a unique metric that analyzes the company's financial health and growth potential. The score takes into account critical factors such as revenue growth, net income, free cash flow (FCF) compound annual growth rate (CAGR), the trend of shares outstanding, and the debt-to-FCF ratio. This helps investors to make a more informed decision, as an undervalued stock might still have poor financial fundamentals.
To view the detailed SS Score for Microsoft Corporation, Login or Upgrade for access.
The Price to Free Cash Flow (P/FCF) ratio for Microsoft Corporation is 53.7, offering insights into how much investors are paying for the company's free cash flow. A lower P/FCF ratio typically suggests that the stock is undervalued, while a higher ratio may indicate overvaluation.
In summary, Microsoft Corporation (MSFT) has shown consistent financial performance, as illustrated by the financial charts above, which track its revenue growth, net income, free cash flow, and shares outstanding over the past several years. These metrics provide investors with key insights into the company's past and projected future performance. Investors should use the SS Score alongside the DCF Fair Value to make better-informed decisions about whether to buy or hold the stock.
*This analysis is for informational purposes only and does not constitute investment advice. Always read the company's 10-K filings and do your own research before making any investment decisions.
Whether Microsoft Corporation (MSFT) is a good stock to buy depends on various factors, including its financial health, market conditions, and your investment strategy. Our analysis indicates that the stock may be overvalued compared to its intrinsic value. However, it is important to assess the SS Score and review the company's fundamentals before making any investment decisions.
The fair value of Microsoft Corporation (MSFT) is determined through our Discounted Cash Flow (DCF) analysis. This value represents the intrinsic worth of the stock based on its expected future cash flows. To view the specific fair value, consider subscribing to our service for complete access.
The SS Score is a proprietary financial quality metric that assesses factors such as revenue growth, net income, free cash flow growth, and debt levels. It helps investors evaluate the overall financial health of Microsoft Corporation. To access the full SS Score, consider upgrading your subscription.
Microsoft Corporation is a significant player in the industry sector, with a market capitalization of $ and a competitive P/E ratio of 37.93. Investors should compare these metrics with industry peers to gauge whether Microsoft Corporation is outperforming or underperforming within its sector.
A Mizuho analyst thinks Wall Street is overreacting to the idea that Microsoft's cloud unit could lose OpenAI business down the road.
A Delaware judge said former Activision Blizzard officials including Chief Executive Bobby Kotick must face most of a lawsuit alleging they shortchanged shareholders when Microsoft bought the "Call of...
Building a resilient retirement portfolio requires a mix of disruption-proof income from REITs, midstream energy, and high-yielding assets, plus growth stocks and ETFs. Current market challenges—AI di...
We are fond of companies that generate cash. A lot of cash.
Microsoft has expanded its renewable energy commitments in Japan through new agreements with Shizen Energy, adding 100 megawatts of long-term clean power. The latest batch of contracts includes three ...
Judson Althoff, Microsoft Commercial Business CEO, joins 'Closing Bell Overtime' to outline how leadership responsibilities are divided across the company, how his group fits into the broader structur...
Microsoft has inked more than $33 billion in commitments to neocloud providers, including Nebius, CoreWeave, Nscale and Lambda. Bloomberg's Brody Ford explains what's behind this strategy with Carolin...
Compare threat intelligence feeds based on indicator quality categories, including indicator age and number of tags. Understand how threat intelligence augments detections by looking at incident creat...
The three major stocks in this analysis are somewhat mixed, as we look ahead to the idea of loose monetary policy. At this point, the markets look strong in all cases over the long term.
Microsoft's Chief Technology Officer Kevin Scott tells CNBC's Arjun Kharpal the company's partnership with OpenAI is its most important ever, and that artificial intelligence will drive the future of ...
Microsoft Chairman and CEO Satya Nadella is handing off some duties related to the company's commercial business so that he and the firm's engineering leaders can be “laser focused” on technical work ...
A new Microsoft 365 subscription tier for individuals brings together Microsoft's artificial intelligence (AI) and productivity tools. The Microsoft 365 Premium tier combines everything that is includ...
OpenAI likely needs ads to bridge the gap between its revenue and spending plans. But its AI-video generator app Sora faces heavy competition from Facebook, TikTok and more.
SUNNYVALE, Calif.--(BUSINESS WIRE)--Proofpoint, Inc., a leading cybersecurity and compliance company today announced its inclusion in the Microsoft Security Store Partner Ecosystem. Proofpoint was sel...
Microsoft Chief Commercial Officer Judson Althoff will take on an expanded role as CEO of commercial business, freeing up company chief Satya Nadella to focus more on the technical side of the busines...
CNBC's Steve Kovach reports on Microsoft's recent executive shakeups.
Microsoft on Wednesday unveiled a 365 Premium subscription plan for individuals at $19.99 a month with its Copilot artificial intelligence powered assistant.
Judson Althoff, Microsoft's top sales leader, is becoming CEO of the company's commercial business. Althoff joined from Oracle as president of North America in 2013.
Microsoft 365 Premium is a new subscription tier that includes artificial intelligence capabilities, access to core productivity applications and cloud storage for $19.99 per month. The launch comes a...
Microsoft's Xbox has raised the price of the highest tier of Game Pass by 50% and expanded its offerings under the videogame subscription service to include more games, enhanced cloud streaming and a ...
Microsoft increased its Xbox Game Pass Ultimate subscription price by 50% to $29.99 per month. Ultimate subscribers will have access to over 400 games and 75 day-one releases.
Microsoft CEO Satya Nadella is handing off day-to-day commercial execution to longtime sales chief Judson Althoff, who takes on the new role of CEO of commercial business.
Below estimates were sourced from SimplyWallSt and are intended for educational purposes only as a baseline for the analysis.
Year | FCF Estimate | % | # Analysts |
---|---|---|---|
2026 | 75.67B | Analyst x23 | |
2027 | 93.68B | 23.80% | Analyst x18 |
2028 | 127.55B | 36.15% | Analyst x6 |
2029 | 164.77B | 29.18% | Analyst x3 |
2030 | 199.48B | 21.06% | Analyst x3 |
2031 | 219.23B | 9.90% | Est @9.9% |
2032 | 235.95B | 7.63% | Est @7.6% |
2033 | 250.18B | 6.03% | Est @6.0% |
2034 | 261.65B | 4.58% | Est @4.6% |
2035 | 271.74B | 3.86% | Est @3.9% |
Below are the FCF estimates with the discount factor and the calculated present value with the terminal value that led the results above.
Year | FCF | Discount Factor | PV of Future FCF |
---|---|---|---|
2024A | 74.07B | 1.00 | 74.07B |
2025A | 71.61B | 1.00 | 71.61B |
2026E | 75.67B | 1.09 | 69.36B |
2027E | 93.68B | 1.19 | 78.70B |
2028E | 127.55B | 1.30 | 98.21B |
2029E | 164.77B | 1.42 | 116.28B |
2030E | 199.48B | 1.55 | 129.03B |
2031E | 219.23B | 1.69 | 129.97B |
2032E | 235.95B | 1.84 | 128.21B |
2033E | 250.18B | 2.01 | 124.60B |
2034E | 261.65B | 2.19 | 119.44B |
2035E | 271.74B | 2.39 | 113.70B |
Terminal | 4.22T | 2.39 | 1.76T |
The information given by Studying Stocks and provided in the web and/or mobile applications (Platforms) is only factual information and should not be considered financial advice.
Any information contained in this website has been prepared without considering your objectives, financial situation or needs. You should not rely on any advice and/or information contained in this website and before making any investment decision we recommend that you consider whether it is appropriate for your situation and seek appropriate financial, taxation and legal advice.
When creating an account, you acknowledge that you are:
We retain the right to cancel your account for any reason, or refuse your account creation request.
The information on our Platforms is not comprehensive and is intended to provide a summary of the subject matter covered. While we use all reasonable attempts to ensure the accuracy and completeness of the data and information on our Platforms, to the extent permitted by law, we make no warranty regarding the information on these Platforms. You should monitor any changes to the information contained on these Platforms.
Furthermore we make no commitments in regards to the minimum amount of uptime that our platforms will maintain, although we will make ever reasonable attempt to ensure that the platforms are operational. Therefore, any reference of "latest", "current" and related words about the financial data presented here may not be up to date with the financial markets or represent reality of the information.
We are not liable to you or anyone else if interference with or damage to your computer systems occurs in connection with the use of these Platforms or a linked website. You must take your own precautions to ensure that whatever you select for your use from our Platforms is free of viruses or anything else (such as worms or Trojan horses) that may interfere with or damage the operations of your computer systems.
We may, from time to time and without notice, change or add to the Platforms (including the Terms) or the information, products or services described in it. However, we do not undertake to keep the Platforms updated. We are not liable to you or anyone else if errors occur in the information or the Platforms is not up-to-date.
Our Platforms may contain links to websites operated by third parties. Those links are provided for convenience and may not remain current or be maintained. Unless expressly stated otherwise, we do not endorse and are not responsible for the content on those linked websites and have no control over or rights in those linked websites.
These Platforms are for your personal, non-commercial use only. You may not modify, copy, distribute, transmit, display, perform, reproduce, publish, license, commercially exploit, create derivative works from, transfer, or sell any Content, software, products or services contained within these Platforms. You may not use these Platforms, or any of its Content, to further any commercial purpose, including any advertising or advertising revenue generation activity on your own website.
You must not do any act that we would deem to be inappropriate, is unlawful or is prohibited by any laws applicable to these Platforms, including but not limited to:
If we allow you to post any information to our Platforms, we have the right to take down this information at our sole discretion and without notice.
To the maximum extent permitted by law, we make no warranties or representations about these Platforms or the Content, including but not limited to warranties or representations that they will be complete, accurate or up-to-date, that access will be uninterrupted or error-free or free from viruses, or that these Platforms will be secure.
We reserve the right to restrict, suspend or terminate without notice your access to these Platforms, any Content, or any feature of these Platforms at any time without notice and we will not be responsible for any loss, cost, damage or liability that may arise as a result.
To the maximum extent permitted by law, in no event shall we be liable for any direct and indirect loss, damage or expense – irrespective of the manner in which it occurs – which may be suffered due to your use of our Platforms and/or the information or materials contained on it, or as a result of the inaccessibility of these Platforms and/or the fact that certain information or materials contained on it are incorrect, incomplete or not up-to-date.
This website utilises cookies. If you do not have cookies enabled in your web browser some functions of the site may not work as intended.