Microsoft (MSFT) Stock Fundamentals, Analysis & Risk Signals

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

Microsoft

NasdaqGS•Technology•Software - Infrastructure

$493.78-3.97(-0.01%)After hours

Market Cap

$3.70T

P/E

27.6x

P/S

11.1x

P/B

8.4x

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: 84/100

Strongest: Growth (25/25); weakest: Cash & Earnings Quality (14/25).

Profitability22/25

Growth25/25

Balance Sheet & Red Flags23/25

Cash & Earnings Quality14/25

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 · 27.6x5y range 21.3x – 37.7x

Currently near its 20-quarter median.

P/S · 11.1x5y range 8.4x – 13.8x

Currently near its 20-quarter median.

P/B · 8.4x5y range 6.4x – 15.9x

Currently near its 20-quarter median.

Watch items

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

Some Concerns

Earnings Quality

Watch

FCF/Net Income has dropped below 0.7x in 4 quarters — monitor for earnings quality deterioration.

Price & Volume

Market Cap $3.70T

Metrics at a Glance

as of June 2026

Revenue & Profit

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

TTM Revenue: $331.84B
Q. Revenue: $90.01B
TTM EBITDA: $189.54B
TTM Op. Income: $155.24B
Q. Op. Income: $40.60B
TTM Net Income: $133.75B
Q. Net Income: $35.77B
EPS: $4.816
Shares Out.: $7.43B

$331.84B in TTM revenue grew 17.8% YoY, reaching $90.01B last quarter. TTM EBITDA of $189.54B and TTM operating income of $155.24B show growth is flowing through to the bottom line. TTM net income of $133.75B 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: 67.2%
EBITDA Margin: 56.6%
Op. Margin: 45.1%
Net Margin: 39.7%

Op. margin of 45.1% is up 0.2% YoY — cost efficiency is improving. Net margin at 39.7% and gross margin of 67.2% show how much of each revenue dollar survives to profit. Across the last 8 quarters, operating margin has fallen for 3 consecutive quarters — a weakening trend.

Price Ratios

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

P/E Ratio: 27.6x
P/S Ratio: 11.1x
P/B Ratio: 8.4x

At 27.6x P/E, the stock trades within typical market levels. P/S of 11.1x and P/B of 8.4x provide additional context. Use the growth and margin sections to judge whether the multiple is justified. Over the past year, P/E is down 24% — a weakening trend.

Assets & Liabilities

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

Total Assets: $758.38B
Cash: $20.93B
Long-Term Debt: $31.07B
Book Value: $442.39B
D/E Ratio: 0.1
Debt/EBITDA: 0.6

With $758.38B in assets and $31.07B in long-term debt, D/E is 0.1and book value is $442.39B — 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: $55.44B
TTM Free Cash Flow: $66.99B
FCF Margin: 20.2%
FCF / Net Income: 0.5

TTM FCF of $66.99B on $55.44B in operating cash flow. The FCF / Net Income ratio of 0.5x means cash covers only part of net income — earnings quality needs attention. Across the last 8 quarters, free cash flow has fallen for 3 consecutive quarters — a weakening trend.