Deeper Dive: Understanding Microsoft Corporation (MSFT) Through its Various Ratios

Kevin Freeman

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The price of Microsoft Corporation (NASDAQ: MSFT) closed at $480.84 in the last session, up 0.65% from day before closing price of $477.73. In other words, the price has increased by $0.65 from its previous closing price. On the day, 22.11 million shares were traded. MSFT stock price reached its highest trading level at $481.322 during the session, while it also had its lowest trading level at $476.49.

Ratios:

We take a closer look at MSFT’s different ratios to gain a better understanding of the stock. It provided that stocks Price–to–Cash (P/C) ratio for the trailing twelve months (TTM) is standing at 35.03 whereas its Price-to-Free Cash Flow (P/FCF) for the term is 45.81. For the most recent quarter (mrq), Quick Ratio is recorded 1.39 and its Current Ratio is at 1.40. In the meantime, Its Debt-to-Equity ratio is 0.33 whereas as Long-Term Debt/Eq ratio is at 0.29.

BMO Capital Markets reiterated its Outperform rating for the stock on October 30, 2025, while the target price for the stock was revised from $650 to $625.

Insider Transactions:

An investor can also benefit from insider trades by learning what management is thinking about the future direction of stock prices. A recent insider transaction in this stock occurred on Dec 02 ’25 when Althoff Judson sold 12,750 shares for $491.52 per share. The transaction valued at 6,266,829 led to the insider holds 129,349 shares of the business.

Numoto Takeshi bought 6,000 shares of MSFT for $2,866,380 on Dec 03 ’25. On Dec 02 ’25, another insider, Althoff Judson, who serves as the Officer of the company, bought 12,750 shares for $491.52 each.

Valuation Measures:

Investors should consider key stock statistics when deciding whether to invest or divest. In the wake of the recent closing price, MSFT now has a Market Capitalization of 3574163570688 and an Enterprise Value of 3592147435520. As of this moment, Microsoft’s Price-to-Earnings (P/E) ratio for their current fiscal year is 34.21, and their Forward P/E ratio for the next fiscal year is 25.59. The expected Price-to-Earnings-to-Growth (PEG) calculation for the next 5 years is 1.92. For the stock, the TTM Price-to-Sale (P/S) ratio is 12.16 while its Price-to-Book (P/B) ratio in mrq is 9.85. Its current Enterprise Value per Revenue stands at 12.226 whereas that against EBITDA is 21.583.

Stock Price History:

The Beta on a monthly basis for MSFT is 1.07, which has changed by 0.077011466 over the last 52 weeks, in comparison to a change of 0.12469888 over the same period for the S&P500. Over the past 52 weeks, MSFT has reached a high of $555.45, while it has fallen to a 52-week low of $344.79. The 50-Day Moving Average of the stock is -5.40%, while the 200-Day Moving Average is calculated to be 2.42%.

Shares Statistics:

According to the various share statistics, MSFT traded on average about 22.12M shares per day over the past 3-months and 26249540 shares per day over the past 10 days. A total of 7.43B shares are outstanding, with a floating share count of 7.32B. Insiders hold about 1.47% of the company’s shares, while institutions hold 85.27% stake in the company. Shares short for MSFT as of 1763078400 were 48553497 with a Short Ratio of 2.20, compared to 1760486400 on 52344880. Therefore, it implies a Short% of Shares Outstanding of 48553497 and a Short% of Float of 0.64999997.

Dividends & Splits

The forward annual dividend rate for MSFT is 3.40, which was 3.4 in the trailing 12 months. Against a Trailing Annual Dividend Yield of 0.0071169906. The stock’s 5-year Average Dividend Yield is 0.8. The current Payout Ratio is 24.34% for MSFT, which recently paid a dividend on 2025-11-20 with an ex-dividend date of 2026-02-19. Stock splits for the company last occurred on 2003-02-18 when the company split stock in a 2:1 ratio.

Earnings Estimates

Current recommendations for the stock of the company come from 33.0 analysts. The consensus estimate for the next quarter is $3.91, with high estimates of $4.18 and low estimates of $3.48.

Analysts are recommending an EPS of between $17.4 and $14.36 for the fiscal current year, implying an average EPS of $15.72. EPS for the following year is $18.63, with 42.0 analysts recommending between $20.4 and $16.37.

Revenue Estimates

According to 41 analysts,. The current quarter’s revenue is expected to be $80.28B. It ranges from a high estimate of $81.66B to a low estimate of $78.58B. As of. The current estimate, Microsoft Corporation’s year-ago sales were $69.63BFor the next quarter, 41 analysts are estimating revenue of $81.25B. There is a high estimate of $83.14B for the next quarter, whereas the lowest estimate is $78.7B.

A total of 51 analysts have provided revenue estimates for MSFT’s current fiscal year. The highest revenue estimate was $333.77B, while the lowest revenue estimate was $320.45B, resulting in an average revenue estimate of $326.83B. In the same quarter a year ago, actual revenue was $281.72BBased on 51 analysts’ estimates, the company’s revenue will be $375.88B in the next fiscal year. The high estimate is $403.8B and the low estimate is $354.04B.