Ratio Review: Analyzing Microsoft Corporation (MSFT)’s Price-to-Cash and Price-to-Free Cash Flow

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After finishing at $502.04 in the prior trading day, Microsoft Corporation (NASDAQ: MSFT) closed at $506.74, up 0.94%. In other words, the price has increased by $0.94 from its previous closing price. On the day, 17.2 million shares were traded. MSFT stock price reached its highest trading level at $507.13 during the session, while it also had its lowest trading level at $499.9.

Ratios:

Our goal is to gain a better understanding of MSFT by taking a closer look at its different ratios. It provided that stocks Price–to–Cash (P/C) ratio for the trailing twelve months (TTM) is standing at 39.83 whereas its Price-to-Free Cash Flow (P/FCF) for the term is 52.60. For the most recent quarter (mrq), Quick Ratio is recorded 1.35 and its Current Ratio is at 1.35. In the meantime, Its Debt-to-Equity ratio is 0.33 whereas as Long-Term Debt/Eq ratio is at 0.29.

Wedbush reiterated its Outperform rating for the stock on July 31, 2025, while the target price for the stock was revised from $600 to $625.

Insider Transactions:

The insider trade also gives investors a glimpse into the future direction of stock prices, which can be beneficial to investors. A recent insider transaction in this stock occurred on Aug 12 ’25 when Numoto Takeshi sold 4,850 shares for $527.32 per share. The transaction valued at 2,557,506 led to the insider holds 39,111 shares of the business.

Numoto Takeshi bought 4,870 shares of MSFT for $2,570,142 on Aug 05 ’25. On Jun 03 ’25, another insider, Numoto Takeshi, who serves as the EVP, Chief Marketing Officer of the company, sold 3,000 shares for $463.00 each. As a result, the insider received 1,389,000 and left with 43,930 shares of the company.

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 3766684483584 and an Enterprise Value of 3784301608960. As of this moment, Microsoft’s Price-to-Earnings (P/E) ratio for their current fiscal year is 37.15, and their Forward P/E ratio for the next fiscal year is 27.73. The expected Price-to-Earnings-to-Growth (PEG) calculation for the next 5 years is 2.22. For the stock, the TTM Price-to-Sale (P/S) ratio is 13.37 while its Price-to-Book (P/B) ratio in mrq is 10.97. Its current Enterprise Value per Revenue stands at 13.433 whereas that against EBITDA is 24.177.

Stock Price History:

The Beta on a monthly basis for MSFT is 1.04, which has changed by 0.22661698 over the last 52 weeks, in comparison to a change of 0.1590569 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 -0.09%, while the 200-Day Moving Average is calculated to be 14.77%.

Shares Statistics:

The stock has traded on average 20.06M shares per day over the past 3-months and 23094600 shares per day over the last 10 days, according to various share statistics. 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 73.28% stake in the company. Shares short for MSFT as of 1755216000 were 56182641 with a Short Ratio of 2.80, compared to 1752537600 on 53792695. Therefore, it implies a Short% of Shares Outstanding of 56182641 and a Short% of Float of 0.76.

Dividends & Splits

In the trailing 12 months, MSFT’s forward annual dividend rate was 3.32, compared to 3.32 this year. Against a Trailing Annual Dividend Yield of 0.0066130185The stock’s 5-year Average Dividend Yield is 0.82. The current Payout Ratio is 24.34% for MSFT, which recently paid a dividend on 2025-08-21 with an ex-dividend date of 2025-08-21. Stock splits for the company last occurred on 2003-02-18 when the company split stock in a 2:1 ratio.

Earnings Estimates

The stock of Microsoft Corporation (MSFT) is currently being evaluated by 31.0 analysts who are actively contributing to its market rating.The consensus estimate for the next quarter is $3.81, with high estimates of $3.97 and low estimates of $3.55.

Analysts are recommending an EPS of between $17.2 and $14.85 for the fiscal current year, implying an average EPS of $15.52. EPS for the following year is $18.14, with 41.0 analysts recommending between $20.4 and $16.57.

Revenue Estimates

35 analysts predict $75.46B in revenue for the current quarter. It ranges from a high estimate of $76.55B to a low estimate of $74.67B. As of the current estimate, Microsoft Corporation’s year-ago sales were $65.58BFor the next quarter, 35 analysts are estimating revenue of $80.08B. There is a high estimate of $81.29B for the next quarter, whereas the lowest estimate is $78.16B.

A total of 52 analysts have provided revenue estimates for MSFT’s current fiscal year. The highest revenue estimate was $344.68B, while the lowest revenue estimate was $313.5B, resulting in an average revenue estimate of $322.66B. In the same quarter a year ago, actual revenue was $281.72BBased on 47 analysts’ estimates, the company’s revenue will be $370.04B in the next fiscal year. The high estimate is $397.29B and the low estimate is $355.73B.

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