Microsoft Corporation MSFT
Technology · Software - Infrastructure · United States · S&P 500
Based on the available data, Microsoft Corporation gets an algorithmic score of 76/100. It trades at 508.96 $, with a bullish technical trend (RSI 58.5) and 32.7% annual volatility.
Updated: 2026-09-30
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Strengths
- High ROE (34.0%): generates strong profit on equity.
- High net margin (40.3%): pricing power / competitive advantage.
- Sustained revenue growth (16.1% compound annual).
- Low-debt balance sheet.
- Meaningful dividend (77.00%).
Weaknesses
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Fundamentals
| P/E | 28.34 |
| Forward P/E | 21.50 |
| PEG | 1.62 |
| P/B | 8.54 |
| EV/EBITDA | 19.73 |
| P/S | 11.39 |
| ROE % | 34.04 |
| ROA % | 14.09 |
| Gross margin % | 67.94 |
| Operating margin % | 45.11 |
| Net margin % | 40.30 |
| Revenue growth % (y/y) | 17.70 |
| Earnings growth % (y/y) | 31.70 |
| Revenue CAGR % | 16.12 |
| Earnings CAGR % | 22.72 |
| Debt/Equity % | 29.12 |
| Current ratio | 1.23 |
| FCF yield % | 1.77 |
| Dividend yield % | 77.00 |
| Payout % | 19.83 |
Returns
| 1 month | -0.9 % |
| 3 months | +36.7 % |
| 6 months | +42.4 % |
| YTD | +8.3 % |
| 1 year | +0.3 % |
| 3 years | +64.3 % |
| 5 years | +79.9 % |
Risk
| 1-year volatility | 32.7 % |
| Beta | 0.73 |
| 5-year max drawdown | -37.1 % |
| Sharpe 1A | 0.05 |
Macroeconomic context
Highly sensitive to interest rates (valued on future cash flows): rate cuts and falling bond yields help it. It depends on the corporate investment cycle (AI/cloud capex), the semiconductor supply chain (Taiwan/China) and the dollar (foreign revenue). As a US company, its valuation depends on the Fed, 10-year Treasury yields and the US earnings cycle.
How the score is calculated
The score combines profitability (ROE, ROA, net margin), growth (revenue and earnings), valuation (P/E, EV/EBITDA, free cash flow), financial strength (debt and liquidity; not applied to banks and insurers) and momentum (6 and 12-month returns and trend). It is an educational quantitative filter, not a buy or sell recommendation.