Microsoft Corporation Stock Price and Value Analysis

Should you buy Microsoft Corporation stock? (NasdaqGS:MSFT). Let's see how it does in our automated value investing analysis system.

MSFT Free Cash Flow Trend

Free Cash Flow trendline for MSFT
Free Cash Flow trendline for Microsoft Corporation

Based on historical returns, we believe that Microsoft Corporation can grow its free cash at a rate of about 1%. That's positive!

AdvantagesDisadvantages
  • This company is a well-established bedrock.
  • This company is making money at a modest rate.
  • This company has wild ups and downs.
  • This company has a low dividend yield.
  • This stock looks overpriced.

Inside the MSFT Numbers

MSFT Price
(Microsoft Corporation stock price per share)
$231.60
[?] MSFT Fair Price
(based on intrinsic value)
$39.04
[?] MSFT Safety Price (based on a variable margin of safety) $33.18
[?] PE Ratio versus Sector 109% higher than other Technology stocks
[?] PE Ratio versus Industry 120% higher than other Unknown stocks
[?] Cash Yield 1.67%
[?] Free Cash Flow Jitter 58%
[?] Dividend Yield 1%
Shares Shorted 40,597,300

This stock has short interest! This means that people have shorted it.

Why does that matter? They've made a bet that price will decrease from where they bought it. Maybe there are financial problems, or maybe there's a value play.

As of the latest analysis, there are 40,597,300 shares shorted. With 7,430,817,240 shares available for purchase and an average trading volume over the past 10 trading days of 32,905,314, it would take at least 1.234 days for all of the short holders to cover their shorts.

Is Microsoft Corporation Stock on Sale?

We believe that Microsoft Corporation may be worth examining further. It's making money, which is a very positive sign. Is it on sale?

Microsoft Corporation looks overpriced right now. If you're looking for a bargain in the stock market, you should probably look elsewhere for a great deal. This might still be a great stock to own—but it's not on sale right now.

Should You Buy MSFT Stock?

Does Microsoft Corporation have a coherent story? Does it have a plan to continue to make money? Is it worth your time? Only you can decide where to go from here. Our investment guide helps you ask the right questions, including how to buy stocks. Use these research links for more information.