Ewpple Chart | Microsoft Corp (MSFT)

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Microsoft Corp (MSFT)

Fun Fact

1. November 1985 saw the first release of Microsoft Windows 1.0.
2. At age 31, in 1987, Bill Gates became the youngest billionaire ever.
3. In 1997, Microsoft saved Apple from almost certain bankruptcy by making a $150 million investment.
4. Microsoft Corporation develops, licenses, and supports software, services, devices, and solutions worldwide.
5. MSFT is a component stock of the S&P 500 & Nasdaq 100 index.

Stock Valuation (TTM 12 Months to Jun 20)

Price | USD 200.39
Market Capitalization | USD 1.52T vs Enterprise Value (EV) USD 1.45T.
Price /Earnings (PE) | 35X. Expensive vs S&P average PE of 29X.
Price /Book (PB) | 13X. Expensive vs S&P average PB of 3.8X.
Dividend Yield (DY) | 1%. A bit low vs S&P average DY of 1.8%.
Net Income | USD 44.3B (+13% YoY).
Net Margin | 29%. This is higher than 96% of the Software industry.
Interest Coverage | 19.5X. This is lower than 52% of the Software industry. Ben Graham requires that a company has interest coverage of 5X or higher.

Analyst Consensus

Target Price | USD 233.68
Call | Buy

Technical Analysis

MSFT is in short term downtrend with support USD 180 & resistance USD 210. Stochastic in the oversold region but have no crossover, no buy signal yet.
Long term uptrend.

Conclusion

Despite fairly expensive valuation. MSFT is worth considering due to its financial strength & tech industry business outlook. Be patient to wait for a buy signal to enter.