Added to YB: 2025-05-29
Pitch date: 2025-05-27
MSFT [neutral]
Microsoft Corporation
+4.12%
current return
Author Info
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Company Info
Microsoft Corporation develops and supports software, services, devices, and solutions worldwide. The company’s Productivity and Business Processes segment offers Microsoft 365 Commercial, Enterprise Mobility + Security, Windows Commercial, Power BI, Exchange, SharePoint, Microsoft Teams, Security and Compliance, and Copilot; Microsoft 365 Commercial products, such as Windows Commercial on-premises and Office licensed services; Microsoft 365 Consumer products and cloud services, such as Microsoft 365 Consumer subscriptions, Office licensed on-premises, and other consumer services; LinkedIn; Dynamics products and cloud services, such as Dynamics 365, cloud-based applications, and on-premises ERP and CRM applications.
Market Cap
$3.6T
Pitch Price
$459.60
Price Target
N/A
Dividend
0.75%
EV/EBITDA
21.47
P/E
34.39
EV/Sales
12.29
Sector
Software
Category
growth
Microsoft: Dominating Cloud, AI, and Enterprise Software
MSFT (overview): Tech giant trading at 11x EV/S, 31.2x P/E (above historical medians). Strong economic moat via Office/Azure with 75% desktop OS share. Q1 2025 revenue +13% YoY, Azure +33%. AI services adding 16pts to Azure growth. Capex $21.4B for AI/cloud infrastructure. Cloud/AI TAM exceeds $2T with 16-36% CAGR. Margins improving; dilution controlled at 0.04% YoY.
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