Microsoft (MSFT) Stock Fundamentals, Analysis & Risk Signals

Health score, price, valuation, risk signals, and key metrics at a glance.

Microsoft

NasdaqGS•Technology•Software - Infrastructure

$521.41+14.29(0.03%)Market open

Market Cap

$3.87T

P/E

27.1x

P/S

11.2x

P/B

8.2x

Microsoft Corporation, a technology company, develops and supports a portfolio of technology solutions for individuals and businesses worldwide. Its products include operating systems, server applications, business solution applications, software development tools, desktop and server management tools, and video games; and devices, such as PCs, tablets, gaming and entertainment consoles, other intelligent devices, and related accessories. The company's Productivity and Business Processes segment offers Microsoft 365 Commercial, Enterprise Mobility + Security, Power BI, Exchange, SharePoint, Microsoft Teams, Microsoft 365 Security and Compliance, Microsoft 365 Copilot, and Windows Commercial on-premises and Office licensed on-premises. This segment also provides Microsoft 365 Consumer products and cloud services; LinkedIn, including talent solutions, marketing solutions, subscriptions, and sales solutions; Dynamics 365, a set of cloud-based applications; and on-premises ERP and CRM applications. Its Intelligent Cloud segment offers server products and cloud services; cloud and AI consumption-based services, GitHub cloud services, health and life sciences cloud services, as well as virtual desktop offerings, and other cloud services; SQL Server, Windows Server, Visual Studio, System Center, and related client access licenses; and enterprise support services, industry solutions, Microsoft partner network, and learning experience. The company's More Personal Computing segment provides Windows OEM licensing and devices comprising Surface and PC accessories; XBOX hardware, and XBOX first- and third-party content and services; XBOX Game Pass and other subscriptions; XBOX Cloud Gaming, advertising, and other cloud services; and search advertising consisting of Bing, Copilot, Microsoft News, Microsoft Edge, and third-party affiliates. It sells its products through partners and retail networks. The company was founded in 1975 and is headquartered in Redmond, Washington.

How this company scores

ExcellentMetricSide Score: 85/100

Strongest: Profitability (25/25); weakest: Cash & Earnings Quality (12/25).

Profitability25/25

Growth25/25

Balance Sheet & Red Flags23/25

Cash & Earnings Quality12/25

Strengths

Growing revenueStrong marginsHigh ROERising earnings

Valuation vs. 5-year range

Today's multiple positioned against its own trailing range — a visual premium/discount check.

P/E · 27.1x5y range 20.5x – 37.7x

Currently near its 20-quarter median.

P/S · 11.2x5y range 8.2x – 13.8x

Currently near its 20-quarter median.

P/B · 8.2x5y range 6.2x – 15.9x

Watch items

Data-driven signals worth keeping an eye on across the last 8 quarters

High Risk

Earnings Quality

Red Flag

FCF consistently trails net income (avg 0.6x) — earnings may be inflated by non-cash items or aggressive accounting.

Price & Volume

Market Cap $3.87T

Metrics at a Glance

as of September 2026

Revenue & Profit

Revenue, EBITDA, operating income, net income, EPS, and shares

TTM Revenue: $346.44B
Q. Revenue: $92.28B
TTM EBITDA: $201.49B
TTM Op. Income: $163.19B
Q. Op. Income: $45.91B
TTM Net Income: $142.63B
Q. Net Income: $36.63B
EPS: N/A
Shares Out.: $7.43B

$346.44B in TTM revenue grew 17.9% YoY, reaching $92.28B last quarter. TTM EBITDA of $201.49B and TTM operating income of $163.19B show growth is flowing through to the bottom line. TTM net income of $142.63B means revenue is converting into profit. Across the last 8 quarters, TTM revenue has risen for 7 consecutive quarters — an improving trend.

Margins

Gross, EBITDA, operating, and net margin trends

Gross Margin: 67.8%
EBITDA Margin: 61.8%
Op. Margin: 49.8%
Net Margin: 39.7%

Op. margin of 49.8% is up 0.9% YoY — cost efficiency is improving. Net margin at 39.7% and gross margin of 67.8% show how much of each revenue dollar survives to profit. Over the past year, operating margin is up 2% — an improving trend.

Price Ratios

P/E, P/S, P/B, EV/EBITDA, FCF yield, and earnings yield

P/E Ratio: 27.1x
P/S Ratio: 11.2x
P/B Ratio: 8.2x

At 27.1x P/E, the stock trades within typical market levels. P/S of 11.2x and P/B of 8.2x provide additional context. Use the growth and margin sections to judge whether the multiple is justified. Over the past year, P/E is down 26% — a weakening trend.

Assets & Liabilities

Total assets, cash, debt, book value, and leverage

Total Assets: $779.40B
Cash: $20.28B
Long-Term Debt: $31.09B
Book Value: $470.51B
D/E Ratio: 0.1
Debt/EBITDA: 0.5

With $779.40B in assets and $31.09B in long-term debt, D/E is 0.1and book value is $470.51B — a conservative capital structure with a cushion to weather downturns. Across the last 8 quarters, debt/equity has fallen for 7 consecutive quarters — an improving trend.

Cash Flow

Operating cash flow, free cash flow, FCF margin, and earnings quality

Op. Cash Flow: $58.00B
TTM Free Cash Flow: $59.96B
FCF Margin: 17.3%
FCF / Net Income: 0.4

TTM FCF of $59.96B on $58.00B in operating cash flow. The FCF / Net Income ratio of 0.4x means cash covers only part of net income — earnings quality needs attention. Across the last 8 quarters, free cash flow has fallen for 4 consecutive quarters — a weakening trend.