| Intrinsic Valuation of: MSFT | |||||||||||
| Free Cash Flow Average and Growth over past 5Y | Key Statistics | ||||||||||
| Year | FCF | FCF (FCF/Revenue) | |||||||||
| 2020 | - | - | EPS (FY) | 13 | Market Cap | $3,697B | |||||
| 2021 | - | - (-) | P/E Ratio | 38 | Total Asset | $512B | |||||
| 2022 | $56B | - (-) | Net Income | $88B | Total Debt | $43B | |||||
| 2023 | $65B | 16.1% (-1.6%) | EBITDA | $133B | Total Liab | $244B | |||||
| 2024 | $59B | -8.7% (-14.6%) | Opr Margin | 0.45 | Debt/Equity | 0.16 | |||||
| 2025 | $74B | 24.5% (7.7%) | PreTax Margin | 43.45 | BV/Share | 16 | |||||
| 5Y Average FCF | $64B | 10.6% (-2.8%) | |||||||||
| Overall Market Assumptions: | |||||||||||
| Assumptions: | P/E for No-Growth Company: | 7.0 | |||||||||
| Perpetual Growth Rate (g): | 2.5% | Historical US Bond Yield: | 4.4% | ||||||||
| Discount Rate (WACC): | 7.4% | Current US Bond Yield: | 3.5% | ||||||||
| Forcasting Future Free Cash Flow for next 6Y | Modified Benjamin Graham's Intrinsic Value | ||||||||||
| Year | FCF Projection (10.6%) | ||||||||||
| 2026 | $82B | MBG Intrinsic Value | $114 | ||||||||
| 2027 | $91B | ||||||||||
| 2028 | $100B | ||||||||||
| 2029 | $111B | ||||||||||
| 2030 | $123B | ||||||||||
| 2031 | $136B | ||||||||||
| Terminal Value | $2,825B | Net Worth/Share | $36 | ||||||||
| DCF Valuation | DCF Valuation "What If" Scenario Table | ||||||||||
| Enterprise Value | $2,331B | Growth Rate | |||||||||
| (+) Cash & Cash Equivalents | $18B | $310 | 1.5% | 2.0% | 2.5% | 3.0% | 3.5% | ||||
| (-) Total Debt | $43B | WACC | 7.3% | 272 | 292 | 317 | 348 | 386 | |||
| Equity Value | $2,307B | 7.4% | 269 | 289 | 314 | 344 | 381 | ||||
| Shares Outstanding | 7,432,540,160 | 7.4% | 267 | 286 | 310 | 340 | 376 | ||||
| 7.9% | 245 | 261 | 280 | 304 | 332 | ||||||
| DCF Intrinsic Value | $310 | 8.4% | 226 | 239 | 255 | 274 | 297 | ||||
| Analyzed by QuantJuice (2025) | |||||||||||