MSFT
Microsoft Corporation
Microsoft retains high recurring revenue quality from enterprise cloud and productivity suites. Near-term operating leverage remains healthy despite elevated AI infrastructure spend.
Model output
Buy
Confidence: High
Sector / Industry
Information Technology
Software Infrastructure
Headquarters
Redmond, WA
Market Cap
$3.1T
Price / Target
$432 / $478
Normalized financial summary
Revenue (TTM)
+14% YoY
$245.1B
Operating Margin
+140 bps YoY
44.2%
FCF (TTM)
31.9% margin
$78.4B
Net Cash / (Debt)
Cash-rich balance sheet
$43.7B
Key ratios
EV / NTM EBITDA
Sector 15.8x
19.4x
P / NTM EPS
Sector 24.1x
31.2x
ROIC
Sector 14.6%
25.3%
Rule of 40
Strong
52%
Valuation section
DCF (Base)
$486
Weight 50%
NTM P/E Multiple
$468
Weight 30%
EV/EBITDA Cross-check
$455
Weight 20%
Assumptions panel
Revenue CAGR (5Y)
±1.0% => ±$22/sh
11.0%
Terminal Growth
±0.5% => ±$18/sh
3.0%
WACC
±0.5% => ∓$24/sh
8.2%
Operating Margin (Year 5)
±100 bps => ±$15/sh
45.0%
Buy / Hold / Sell output
Current recommendation
Buy
Price: $432
Model target: $478
This output reflects weighted valuation and assumptions sensitivity from the mock modeling engine.
What changed section
2026-03-14
Azure growth re-accelerated in channel checks
Impact: +2.4% target revision
2026-03-10
Raised AI capex assumptions
Impact: -1.1% DCF fair value
2026-03-03
Improved Office commercial renewal trends
Impact: +0.9% EPS uplift