Stock Analysis on Net
Stock Analysis on Net

Microsoft Corp. (NASDAQ:MSFT)

Price to FCFE (P/FCFE) 

Microsoft Excel

Free Cash Flow to Equity (FCFE)

Microsoft Corp., FCFE calculation

US$ in millions

Microsoft Excel
12 months ended: Jun 30, 2024 Jun 30, 2023 Jun 30, 2022 Jun 30, 2021 Jun 30, 2020 Jun 30, 2019
Net income 88,136 72,361 72,738 61,271 44,281 39,240
Net noncash charges 28,588 17,609 15,851 16,405 17,877 9,079
Changes in operating assets and liabilities 1,824 (2,388) 446 (936) (1,483) 3,866
Net cash from operations 118,548 87,582 89,035 76,740 60,675 52,185
Proceeds from issuance (repayments) of debt, maturities of 90 days or less, net 5,250 — — — — —
Proceeds from issuance of debt 24,395 — — — — —
Cash premium on debt exchange — — — (1,754) (3,417) —
Repayments of debt (29,070) (2,750) (9,023) (3,750) (5,518) (4,000)
Additions to property and equipment (44,477) (28,107) (23,886) (20,622) (15,441) (13,925)
Free cash flow to equity (FCFE) 74,646 56,725 56,126 50,614 36,299 34,260

Based on: 10-K (reporting date: 2024-06-30), 10-K (reporting date: 2023-06-30), 10-K (reporting date: 2022-06-30), 10-K (reporting date: 2021-06-30), 10-K (reporting date: 2020-06-30), 10-K (reporting date: 2019-06-30).

Item Description The company
FCFE Free cash flow to equity is the cash flow available to Microsoft Corp. equity holders after all operating expenses, interest, and principal payments have been paid and necessary investments in working and fixed capital have been made. Microsoft Corp. FCFE increased from 2022 to 2023 and from 2023 to 2024.

Price to FCFE Ratio, Current

Microsoft Corp., current P/FCFE calculation, comparison to benchmarks

Microsoft Excel
No. shares of common stock outstanding 7,434,880,776
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in millions) 74,646
FCFE per share 10.04
Current share price (P) 415.49
Valuation Ratio
P/FCFE 41.38
Benchmarks
P/FCFE, Competitors1
Accenture PLC 23.64
Adobe Inc. 34.13
Autodesk Inc. 52.86
Cadence Design Systems Inc. 72.71
CrowdStrike Holdings Inc. 92.38
International Business Machines Corp. 11.71
Intuit Inc. 40.12
Oracle Corp. 64.93
Palo Alto Networks Inc. 61.89
Salesforce Inc. 40.51
ServiceNow Inc. 77.93
Synopsys Inc. 55.06
P/FCFE, Sector
Software & Services 41.90
P/FCFE, Industry
Information Technology 51.66

Based on: 10-K (reporting date: 2024-06-30).

1 Click competitor name to see calculations.

If the company P/FCFE is lower then the P/FCFE of benchmark then company is relatively undervalued.
Otherwise, if the company P/FCFE is higher then the P/FCFE of benchmark then company is relatively overvalued.

Price to FCFE Ratio, Historical

Microsoft Corp., historical P/FCFE calculation, comparison to benchmarks

Microsoft Excel
Jun 30, 2024 Jun 30, 2023 Jun 30, 2022 Jun 30, 2021 Jun 30, 2020 Jun 30, 2019
No. shares of common stock outstanding1 7,433,038,381 7,429,763,722 7,457,891,872 7,514,891,248 7,567,652,935 7,635,409,400
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in millions)2 74,646 56,725 56,126 50,614 36,299 34,260
FCFE per share3 10.04 7.63 7.53 6.74 4.80 4.49
Share price1, 4 422.92 330.72 276.41 286.50 205.01 138.06
Valuation Ratio
P/FCFE5 42.11 43.32 36.73 42.54 42.74 30.77
Benchmarks
P/FCFE, Competitors6
Accenture PLC 23.91 21.03 17.91 25.76 19.01 19.50
Adobe Inc. — 41.83 21.32 34.26 41.36 41.90
Autodesk Inc. 37.55 25.55 16.66 64.43 24.07 41.92
Cadence Design Systems Inc. — 71.40 33.41 36.31 45.86 36.04
CrowdStrike Holdings Inc. 85.82 42.65 99.63 41.38 880.68 —
International Business Machines Corp. — 9.97 11.97 48.45 9.43 4.39
Intuit Inc. 38.43 38.74 13.86 86.74 17.36 34.61
Oracle Corp. 48.38 15.47 — 8.36 6.27 22.31
Palo Alto Networks Inc. 52.90 79.75 29.54 32.91 8.11 46.20
Salesforce Inc. 38.33 31.06 16.56 49.52 50.40 29.09
ServiceNow Inc. — 58.13 44.44 64.54 49.83 68.98
Synopsys Inc. — 57.04 33.41 40.55 45.07 77.64
P/FCFE, Sector
Software & Services — 32.73 30.44 33.85 25.89 22.16
P/FCFE, Industry
Information Technology — 33.47 26.69 27.52 23.46 19.14

Based on: 10-K (reporting date: 2024-06-30), 10-K (reporting date: 2023-06-30), 10-K (reporting date: 2022-06-30), 10-K (reporting date: 2021-06-30), 10-K (reporting date: 2020-06-30), 10-K (reporting date: 2019-06-30).

1 Data adjusted for splits and stock dividends.

2 See details »

3 2024 Calculation
FCFE per share = FCFE ÷ No. shares of common stock outstanding
= 74,646,000,000 ÷ 7,433,038,381 = 10.04

4 Closing price as at the filing date of Microsoft Corp. Annual Report.

5 2024 Calculation
P/FCFE = Share price ÷ FCFE per share
= 422.92 ÷ 10.04 = 42.11

6 Click competitor name to see calculations.

Valuation ratio Description The company
P/FCFE Price to free cash flow to equity is cash valuation indicator of stockholders’ equity. Microsoft Corp. P/FCFE ratio increased from 2022 to 2023 but then slightly decreased from 2023 to 2024.