| Intrinsic Valuation of: MSFT | |||||||||||
| Free Cash Flow Average and Growth over past 5Y | Key Statistics | ||||||||||
| Year | FCF | FCF (FCF/Revenue) | |||||||||
| 2020 | - | - | EPS (FY) | 17 | Market Cap | $3,134B | |||||
| 2021 | - | - (-) | P/E Ratio | 25 | Total Asset | $619B | |||||
| 2022 | $65B | - (-) | Net Income | $102B | Total Debt | $40B | |||||
| 2023 | $59B | -8.7% (-14.6%) | EBITDA | $160B | Total Liab | $276B | |||||
| 2024 | $74B | 24.5% (7.7%) | Opr Margin | 45.62 | Debt/Equity | 0.12 | |||||
| 2025 | $72B | -3.3% (-15.9%) | PreTax Margin | 44.78 | BV/Share | 27 | |||||
| 5Y Average FCF | $68B | 9.2% (-7.6%) | |||||||||
| Overall Market Assumptions: | |||||||||||
| Assumptions: | P/E for No-Growth Company: | 7.0 | |||||||||
| Perpetual Growth Rate (g): | 2.48% | Historical US Bond Yield: | 4.40% | ||||||||
| Discount Rate (WACC): | 9.43% | Current US Bond Yield: | 3.48% | ||||||||
| Forcasting Future Free Cash Flow for next 6Y | Modified Benjamin Graham's Intrinsic Value | ||||||||||
| Year | FCF Projection (9.2%) | ||||||||||
| 2026 | $77B | MBG Intrinsic Value | $151 | ||||||||
| 2027 | $83B | ||||||||||
| 2028 | $88B | ||||||||||
| 2029 | $93B | ||||||||||
| 2030 | $96B | ||||||||||
| 2031 | $99B | ||||||||||
| Terminal Value | $1,455B | Net Worth/Share | $46 | ||||||||
| DCF Valuation | DCF Valuation "What If" Scenario Table | ||||||||||
| Enterprise Value | $1,238B | Growth Rate | |||||||||
| (+) Cash & Cash Equivalents | $30B | $165 | 1.5% | 2.0% | 2.5% | 3.0% | 3.5% | ||||
| (-) Total Debt | $40B | WACC | 7.4% | 202 | 216 | 234 | 255 | 281 | |||
| Equity Value | $1,228B | 8.4% | 172 | 182 | 194 | 207 | 224 | ||||
| Shares Outstanding | 7,428,434,704 | 9.4% | 150 | 157 | 165 | 175 | 186 | ||||
| 10.4% | 133 | 138 | 144 | 151 | 159 | ||||||
| DCF Intrinsic Value | $165 | 11.4% | 119 | 123 | 128 | 133 | 138 | ||||
| Analyzed by QuantJuice (2025) | |||||||||||