MSFT

$393.67

Public overview and default valuation.

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Valuation Details
Default assumptions: 10Y forecast, 9% market return, 2.5% terminal growth, 6.99% trendline growth.
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$636.99

With 20% Margin of Safety (MoS):

$509.59
29.45% upside
Capital Efficiency
Average Quarterly ROIC
9.86%
Cost of Capital (estimated)8%
Value StatusCreating Value

The company is earning a higher return on invested capital than it costs to raise that capital — a sign of strong, efficient value creation.

Complete historical ROIC is available with
.
Fundamental Score
88
BullishWeighted across 6 signals
DCF Discount
29.5% discount to price
99
FCF Yield
8.3% trailing FCF yield
100
ROIC vs WACC
ROIC 9.9% vs WACC 8.0% (1.2x)
62
Net Debt / FCF
Net cash position
100
Buybacks
Share count shrinking
80
FCF CAGR (5Y)
26.2% 5Y FCF CAGR
100
Strengths lead the score: DCF Discount, FCF Yield.
Narrative Score
78
Improving
Weighted across 6 recent drivers · Last 30 days-2 vs previous · +3 new driversVs 6-Month Baseline: High (84th pct)
Trend: Improving upConfidence: 100%Updated: 3h ago
Sources: 224 (News 200 · Analyst 24)
Drivers
47 regulatory scrutiny+4.1
7 upgrade headlines+2.2
139 news sentiment-1.1
3 downgrade headlines-0.9
Margin pressure-0.6
2 analyst downgrades-0.3
Other Metrics
P/E24.5
Profit Margin39.0%
Owner Earnings$244.56b
One Dollar Premise21.00%
Debt/Equity0.75
Current Ratio1.38
PEG1.783
Free Cash Flow (in millions)
20062007200820092010201120122013201420152016201720182019202020212022202320242025
$15,982$20,060$24,794$22,156$26,050$29,349$33,931$33,090$37,987$35,612$41,668$47,636$55,516$66,110$76,116$97,362$112,921$115,689$163,025$243,600
How Intrinziq Estimates Fair Value

Intrinziq estimates Microsoft Corporation's intrinsic value using a discounted cash flow (DCF) model based on free cash flow trends and a market-based discount rate. The model projects future cash flows over ten years and discounts them using a market return assumption to estimate fair value.

Microsoft CorporationTechnology

Microsoft Corporation develops, licenses, and supports software, services, devices, and solutions worldwide. The company operates in three segments: Productivity and Business Processes, Intelligent Cloud, and More Personal Computing. The Productivity and Business Processes segment offers Office, Exchange, SharePoint, Microsoft Teams, Office 365 Security and Compliance, Microsoft Viva, and Skype for Business; Skype, Outlook.com, OneDrive, and LinkedIn; and Dynamics 365, a set of cloud-based and on-premises business solutions for organizations and enterprise divisions. The Intelligent Cloud segment licenses SQL, Windows Servers, Visual Studio, System Center, and related Client Access Licenses; GitHub that provides a collaboration platform and code hosting service for developers; Nuance provides healthcare and enterprise AI solutions; and Azure, a cloud platform. It also offers enterprise support, Microsoft consulting, and nuance professional services to assist customers in developing, deploying, and managing Microsoft server and desktop solutions; and training and certification on Microsoft products. The More Personal Computing segment provides Windows original equipment manufacturer (OEM) licensing and other non-volume licensing of the Windows operating system; Windows Commercial, such as volume licensing of the Windows operating system, Windows cloud services, and other Windows commercial offerings; patent licensing; and Windows Internet of Things. It also offers Surface, PC accessories, PCs, tablets, gaming and entertainment consoles, and other devices; Gaming, including Xbox hardware, and Xbox content and services; video games and third-party video game royalties; and Search, including Bing and Microsoft advertising. The company sells its products through OEMs, distributors, and resellers; and directly through digital marketplaces, online stores, and retail stores. Microsoft Corporation was founded in 1975 and is headquartered in Redmond, Washington.

Last updated: Feb 06, 2026
Data sources: Financial Modeling Prep
This valuation is based on assumptions and publicly available data. It is not financial advice or a recommendation to buy or sell any security. Always do your own research before making investment decisions.