DCF Tool

MSFT

Microsoft Corporation is an American multinational technology corporation headquartered in Redmond, Washington. Microsofts best-known software products are the Windows line of operating systems, the Microsoft Office suite, and the Internet Explorer and Edge web browsers.
Analysis Results
Intrinsic Value $191.45
Latest Price $411.84
Relative Value 115% overvalued
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Cash Flow (Billions)
Analysis Parameters
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Analysis Details
Growth Rate Projection

An exponential growth model was fit to the past cash flow data, giving more weight to more recent years. This model determined a growth rate estimate of 16.6%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 9.7%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 16.6%, the cash flows for the next 5 years are projected.

The present value of each year's flow is adjusted to present value using the discount rate.

Year Future flow (billion) Present value (billion)
2024 73.5 67.1
2025 85.8 71.3
2026 100 75.8
2027 117 80.7
2028 136 85.8
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 1810 billion. This corresponds to a present value of 1040 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 381 billion. Adding in the terminal value gives a total present value of 1420 billion.

There are presently 7.43 billion outstanding shares, so the intrinsic value per share is 191.45.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 184,257,000,000
Current Cash 111,262,000,000
Current Liabilities 104,149,000,000
Current Debt 5,247,000,000
Non-Cash Working Capital (NCWC) -25,907,000,000
Change in NCWC 1,499,000,000
EBIT 88,523,000,000
Tax Provision 16,950,000,000
Depreciation and Amortization 13,861,000,000
Capital Expenditure -28,107,000,000
Unlevered Free Cash Flow 58,975,551,566
Current Assets 169,684,000,000
Current Cash 104,757,000,000
Current Liabilities 95,082,000,000
Current Debt 2,749,000,000
Non-Cash Working Capital (NCWC) -27,406,000,000
Change in NCWC -893,000,000
EBIT 83,383,000,000
Tax Provision 10,978,000,000
Depreciation and Amortization 14,460,000,000
Capital Expenditure -23,886,000,000
Unlevered Free Cash Flow 62,129,667,566
Current Assets 184,406,000,000
Current Cash 130,334,000,000
Current Liabilities 88,657,000,000
Current Debt 8,072,000,000
Non-Cash Working Capital (NCWC) -26,513,000,000
Change in NCWC -3,340,000,000
EBIT 69,916,000,000
Tax Provision 9,831,000,000
Depreciation and Amortization 11,686,000,000
Capital Expenditure -20,622,000,000
Unlevered Free Cash Flow 47,972,983,657
Current Assets 181,915,000,000
Current Cash 136,527,000,000
Current Liabilities 72,310,000,000
Current Debt 3,749,000,000
Non-Cash Working Capital (NCWC) -23,173,000,000
Change in NCWC -1,002,000,000
EBIT 52,959,000,000
Tax Provision 8,755,000,000
Depreciation and Amortization 12,796,000,000
Capital Expenditure -15,441,000,000
Unlevered Free Cash Flow 40,569,710,894
Current Assets 175,552,000,000
Current Cash 133,819,000,000
Current Liabilities 69,420,000,000
Current Debt 5,516,000,000
Non-Cash Working Capital (NCWC) -22,171,000,000
Change in NCWC -3,575,000,000
EBIT 42,959,000,000
Tax Provision 4,448,000,000
Depreciation and Amortization 11,682,000,000
Capital Expenditure -13,925,000,000
Unlevered Free Cash Flow 32,767,221,571
Current Assets 169,662,000,000
Current Cash 133,768,000,000
Current Liabilities 58,488,000,000
Current Debt 3,998,000,000
Non-Cash Working Capital (NCWC) -18,596,000,000
Change in NCWC 8,940,000,000
EBIT 35,058,000,000
Tax Provision 19,903,000,000
Depreciation and Amortization 10,261,000,000
Capital Expenditure -11,632,000,000
Unlevered Free Cash Flow 23,496,677,743
Current Assets 159,851,000,000
Current Cash 132,981,000,000
Current Liabilities 64,527,000,000
Current Debt 10,121,000,000
Non-Cash Working Capital (NCWC) -27,536,000,000
Change in NCWC -7,503,000,000
EBIT 22,632,000,000
Tax Provision 1,945,000,000
Depreciation and Amortization 8,778,000,000
Capital Expenditure -34,073,000,000
Unlevered Free Cash Flow -12,067,561,190
Current Assets 139,660,000,000
Current Cash 113,240,000,000
Current Liabilities 59,357,000,000
Current Debt 12,904,000,000
Non-Cash Working Capital (NCWC) -20,033,000,000
Change in NCWC -5,845,000,000
EBIT 21,292,000,000
Tax Provision 2,953,000,000
Depreciation and Amortization 6,622,000,000
Capital Expenditure -8,343,000,000
Unlevered Free Cash Flow 10,542,602,906
Current Assets 124,712,000,000
Current Cash 96,526,000,000
Current Liabilities 49,858,000,000
Current Debt 7,484,000,000
Non-Cash Working Capital (NCWC) -14,188,000,000
Change in NCWC 900,000,000
EBIT 28,172,000,000
Tax Provision 6,314,000,000
Depreciation and Amortization 5,957,000,000
Capital Expenditure -5,944,000,000
Unlevered Free Cash Flow 19,473,609,282
Current Assets 114,246,000,000
Current Cash 85,709,000,000
Current Liabilities 45,625,000,000
Current Debt 2,000,000,000
Non-Cash Working Capital (NCWC) -15,088,000,000
Change in NCWC -5,114,000,000
EBIT 27,886,000,000
Tax Provision 5,746,000,000
Depreciation and Amortization 5,212,000,000
Capital Expenditure -5,485,000,000
Unlevered Free Cash Flow 16,739,368,224
Current Assets 101,466,000,000
Current Cash 77,022,000,000
Current Liabilities 37,417,000,000
Current Debt 2,999,000,000
Non-Cash Working Capital (NCWC) -9,974,000,000
Change in NCWC -561,000,000
EBIT 26,764,000,000
Tax Provision 5,189,000,000
Depreciation and Amortization 3,755,000,000
Capital Expenditure -4,257,000,000
Unlevered Free Cash Flow 20,567,242,939
Current Assets 85,084,000,000
Current Cash 63,040,000,000
Current Liabilities 32,688,000,000
Current Debt 1,231,000,000
Non-Cash Working Capital (NCWC) -9,413,000,000
Change in NCWC -2,785,000,000
EBIT 27,956,000,000
Tax Provision 5,289,000,000
Depreciation and Amortization 0
Capital Expenditure -2,305,000,000
Unlevered Free Cash Flow 16,225,712,399

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