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Microsoft (HKSE:04338) EV-to-FCF : 42.05 (As of Apr. 28, 2024)


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What is Microsoft EV-to-FCF?

EV-to-FCF is calculated as enterprise value divided by its free cash flow. As of today, Microsoft's Enterprise Value is HK$23,223,688 Mil. Microsoft's Free Cash Flow for the trailing twelve months (TTM) ended in Mar. 2024 was HK$552,308 Mil. Therefore, Microsoft's EV-to-FCF for today is 42.05.

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

HKSE:04338' s EV-to-FCF Range Over the Past 10 Years
Min: 7.82   Med: 24.48   Max: 47.58
Current: 42.79

During the past 13 years, the highest EV-to-FCF of Microsoft was 47.58. The lowest was 7.82. And the median was 24.48.

HKSE:04338's EV-to-FCF is ranked worse than
74.28% of 1520 companies
in the Software industry
Industry Median: 21.045 vs HKSE:04338: 42.79

EV-to-FCF is a valuation multiple that allows analysts and investors to compare stocks, preferably in the same sector or industry. This important multiple is often used in conjunction with, or as an alternative to, the PE Ratio to determine the fair market value of a company.

As of today (2024-04-28), Microsoft's stock price is HK$1600.00. Microsoft's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Mar. 2024 was HK$90.361. Therefore, Microsoft's PE Ratio for today is 17.71.


Microsoft EV-to-FCF Historical Data

The historical data trend for Microsoft's EV-to-FCF 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 EV-to-FCF Chart

Microsoft Annual Data
Trend Jun14 Jun15 Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23
EV-to-FCF
Get a 7-Day Free Trial Premium Member Only Premium Member Only 25.31 32.61 35.18 28.76 41.69

Microsoft Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
EV-to-FCF Get a 7-Day Free Trial 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 36.58 41.69 36.18 41.54 44.30

Competitive Comparison of Microsoft's EV-to-FCF

For the Software - Infrastructure subindustry, Microsoft's EV-to-FCF, along with its competitors' market caps and EV-to-FCF 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's EV-to-FCF Distribution in the Software Industry

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

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



Microsoft EV-to-FCF Calculation

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

EV-to-FCF=Enterprise Value (Today)/Free Cash Flow (TTM)
=23223688.479/552307.623
=42.05

Microsoft's current Enterprise Value is HK$23,223,688 Mil.
Microsoft's Free Cash Flow for the trailing twelve months (TTM) ended in Mar. 2024 adds up the quarterly data reported by the company within the most recent 12 months, which was HK$552,308 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  (HKSE:04338) EV-to-FCF Explanation

EV-to-FCF is a valuation multiple that allows analysts and investors to compare stocks, preferably in the same sector or industry. This important multiple is often used in conjunction with, or as an alternative to, the PE Ratio to determine the fair market value of a company.

Microsoft's PE Ratio for today is calculated as:

PE Ratio=Share Price (Today)/Earnings per Share (Diluted) (TTM)
=1600.00/90.361
=17.71

Microsoft's share price for today is HK$1600.00.
Microsoft's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Mar. 2024 adds up the quarterly data reported by the company within the most recent 12 months, which was HK$90.361.

* 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.

Enterprise Value is used because it is a more complete measure in reflecting how much an investor pays when buying a company. Free Cash Flow is an important financial metric because it represents the actual amount of cash at a company's disposal. Companies with a low EV-to-FCF ratio, combined with a strong balance sheet are generally considered as undervalued.


Microsoft EV-to-FCF Related Terms

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Microsoft (HKSE:04338) 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).

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