| Intrinsic Valuation of: MSFT | |||||||||||
| Free Cash Flow Average and Growth over past 5Y | Key Statistics | ||||||||||
| Year | FCF | FCF (FCF/Revenue) | |||||||||
| 2020 | - | - | EPS (FY) | 14 | Market Cap | $3,766B | |||||
| 2021 | - | - (-) | P/E Ratio | 37 | 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 | 0.46 | Debt/Equity | 0.12 | |||||
| 2025 | $72B | -3.3% (-15.9%) | PreTax Margin | 44.78 | BV/Share | 27 | |||||
| 5Y Average FCF | $68B | 4.2% (-7.6%) | |||||||||
| 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 (4.2%) | ||||||||||
| 2026 | $75B | MBG Intrinsic Value | $122 | ||||||||
| 2027 | $78B | ||||||||||
| 2028 | $81B | ||||||||||
| 2029 | $84B | ||||||||||
| 2030 | $88B | ||||||||||
| 2031 | $92B | ||||||||||
| Terminal Value | $1,902B | Net Worth/Share | $46 | ||||||||
| DCF Valuation | DCF Valuation "What If" Scenario Table | ||||||||||
| Enterprise Value | $1,624B | Growth Rate | |||||||||
| (+) Cash & Cash Equivalents | $30B | $217 | 1.5% | 2.0% | 2.5% | 3.0% | 3.5% | ||||
| (-) Total Debt | $40B | WACC | 7.3% | 191 | 205 | 222 | 242 | 268 | |||
| Equity Value | $1,614B | 7.4% | 189 | 203 | 219 | 240 | 265 | ||||
| Shares Outstanding | 7,433,169,920 | 7.4% | 188 | 201 | 217 | 237 | 262 | ||||
| 7.9% | 173 | 184 | 197 | 213 | 232 | ||||||
| DCF Intrinsic Value | $217 | 8.4% | 160 | 169 | 180 | 193 | 208 | ||||
| Analyzed by QuantJuice (2025) | |||||||||||