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Microsoft (Microsoft) EV-to-EBIT

: 29.60 (As of Today)
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EV-to-EBIT is calculated as Enterprise Value divided by its EBIT. As of today, Microsoft's Enterprise Value is $3,066,726 Mil. Microsoft's EBIT for the trailing twelve months (TTM) ended in Dec. 2023 was $103,622 Mil. Therefore, Microsoft's EV-to-EBIT for today is 29.60.

The historical rank and industry rank for Microsoft's EV-to-EBIT or its related term are showing as below:

MSFT' s EV-to-EBIT Range Over the Past 10 Years
Min: 7.36   Med: 20.23   Max: 32.51
Current: 29.6

During the past 13 years, the highest EV-to-EBIT of Microsoft was 32.51. The lowest was 7.36. And the median was 20.23.

MSFT's EV-to-EBIT is ranked worse than
69.3% of 1648 companies
in the Software industry
Industry Median: 17.045 vs MSFT: 29.60

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt) %. Microsoft's Enterprise Value for the quarter that ended in Dec. 2023 was $2,801,975 Mil. Microsoft's EBIT for the trailing twelve months (TTM) ended in Dec. 2023 was $103,622 Mil. Microsoft's Earnings Yield (Joel Greenblatt) % for the quarter that ended in Dec. 2023 was 3.70%.


Microsoft EV-to-EBIT Historical Data

The historical data trend for Microsoft's EV-to-EBIT can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Microsoft Annual Data
Trend Jun14 Jun15 Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23
EV-to-EBIT
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 20.88 26.52 26.88 21.84 27.17

Microsoft Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
EV-to-EBIT Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 20.65 24.13 27.17 23.58 27.04

Competitive Comparison

For the Software - Infrastructure subindustry, Microsoft's EV-to-EBIT, along with its competitors' market caps and EV-to-EBIT data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Microsoft EV-to-EBIT Distribution

For the Software industry and Technology sector, Microsoft's EV-to-EBIT distribution charts can be found below:

* The bar in red indicates where Microsoft's EV-to-EBIT falls into.



Microsoft EV-to-EBIT Calculation

Microsoft's EV-to-EBIT for today is calculated as:

EV-to-EBIT=Enterprise Value (Today)/EBIT (TTM)
=3066725.509/103622
=29.60

Microsoft's current Enterprise Value is $3,066,726 Mil.
Microsoft's EBIT for the trailing twelve months (TTM) ended in Dec. 2023 adds up the quarterly data reported by the company within the most recent 12 months, which was $103,622 Mil.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Microsoft  (NAS:MSFT) EV-to-EBIT Explanation

This is a more accurate valuation of companies' operation because it considers the debt and cash on its balance sheet, and non-operating items such as interest payment, tax, and one-time items are not included in the Operating Income.

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt) %.

Microsoft's Earnings Yield (Joel Greenblatt) % for the quarter that ended in Dec. 2023 is calculated as:

Earnings Yield (Joel Greenblatt) % (Q: Dec. 2023 ) =EBIT / Enterprise Value (Q: Dec. 2023 )
=103622/2801974.6244
=3.70 %

Microsoft's Enterprise Value for the quarter that ended in Dec. 2023 was $2,801,975 Mil.
Microsoft's EBIT for the trailing twelve months (TTM) ended in Dec. 2023 adds up the quarterly data reported by the company within the most recent 12 months, which was $103,622 Mil.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Microsoft EV-to-EBIT Related Terms

Thank you for viewing the detailed overview of Microsoft's EV-to-EBIT provided by GuruFocus.com. Please click on the following links to see related term pages.


Microsoft (Microsoft) Business Description

Address
One Microsoft Way, Redmond, WA, USA, 98052-6399
Microsoft develops and licenses consumer and enterprise software. It is known for its Windows operating systems and Office productivity suite. The company is organized into three equally sized broad segments: productivity and business processes (legacy Microsoft Office, cloud-based Office 365, Exchange, SharePoint, Skype, LinkedIn, Dynamics), intelligence cloud (infrastructure- and platform-as-a-service offerings Azure, Windows Server OS, SQL Server), and more personal computing (Windows Client, Xbox, Bing search, display advertising, and Surface laptops, tablets, and desktops).
Executives
Kathleen T Hogan officer: EVP, Human Resources C/O MICROSOFT CORPORATION, ONE MICROSOFT WAY, REDMOND WA 98052-6399
Judson Althoff officer: EVP, Chief Commercial Officer MICROSOFT CORPORATION, ONE MICROSOFT WAY, REDMOND WA 98052
Satya Nadella director, officer: Chief Executive Officer C/O MICROSOFT CORPORATION, ONE MICROSOFT WAY, REDMOND WA 98052-6399
Bradford L Smith officer: Executive Vice President MICROSOFT CORPORATION, ONE MICROSOFT WAY, REDMOND WA 98052-6399
Teri List director 2200 PENNSYLVANIA AVENUE, SUITE 800W, WASHINGTON DC 20037
Christopher C Capossela officer: EVP, Chief Marketing Officer C/O MICROSOFT CORPORATION, ONE MICROSOFT WAY, REDMOND WA 98052-6399
Amy Hood officer: Chief Financial Officer C/O MICROSOFT CORPORATION, ONE MICROSOFT WAY, REDMOND WA 98052-6399
Emma N Walmsley director C/O MICROSOFT CORPORATION, ONE MICROSOFT WAY, REDMOND WA 98052-6399
Carlos A Rodriguez director 10200 SUNSET DRIVE, MIAMI FL 33173
Christopher David Young officer: EVP, Business Development C/O MICROSOFT CORPORATION, ONE MICROSOFT WAY, REDMOND WA 98052-6399
John W Stanton director 3650 131ST AVE SE #400, WESTERN WIRELESS CORP, BELLEVUE WA 98006
Charles W Scharf director C/O VISA INC., 900 METRO CENTER BLVD., FOSTER CITY CA 94404
Hugh F Johnston director PEPSICO, INC., 700 ANDERSON HILL ROAD, PURCHASE NY 10577
Reid Hoffman director C/O LINKEDIN CORPORATION, 2029 STIERLIN COURT, MOUNTAIN VIEW CA 94043
Sandra E Peterson director 100 PARSONS POND DRIVE, FRANKLIN LAKES NJ 07417