Microsoft Corporation (MSFT) Stock Analysis
Over the past 10 years, Microsoft (MSFT) earnings per share (EPS) grew 23.8% a year, revenue grew 13.8% a year and free cash flow grew 10.4% a year, with an average return on invested capital (ROIC) of 19.3%. MSFT stock trades at $529.05, a P/E of 31.2, in line with its historical average of 32.8. Analysts' average 12-month price target is $591.58 (+11.8%).
Microsoft Corporation is a prominent global technology firm that invents, markets, and provides ongoing assistance for a diverse range of software, digital services, computing devices, and comprehensive solutions.
Exhibit A Growth Dossier
| Metric | 10yr | 5yr | 1yr | Grade |
|---|---|---|---|---|
| Book Value/Share GrowthBV/S | 20.8% | 26.0% | 28.9% | A+ |
| EPS GrowthEPS | 23.8% | 17.3% | 23.9% | A+ |
| Revenue GrowthRevenue | 13.8% | 14.6% | 17.8% | A |
| Cash Flow GrowthCash Flow | 10.4% | 3.6% | -6.5% | C- |
| ROICROIC | 19.3% | 22.7% | 20.6% | A+ |
Exhibit B Valuation Ledger
- Current EPS
- $16.96
- Historical Avg P/E
- 32.8
- Future P/E (used for sticker price)
- Projected EPS (10yr)
- Sticker Price (10yr)
- Price for 15% Annual Return
- Expected Annual Return
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Not investment advice — a structured read of historical fundamentals, not a forecast or recommendation. Always do your own research.
Exhibit C Raw Data (last 10 years)
| Metric | Trend | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | TTM |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Book Value / ShareBV/S | $8.99 | $11.20 | $10.61 | $13.20 | $15.40 | $18.66 | $22.09 | $27.60 | $35.95 | $46.01 | $59.36 | $59.36 | |
| Basic EPSEPS | $2.12 | $3.29 | $2.15 | $5.11 | $5.82 | $8.12 | $9.70 | $9.72 | $11.86 | $13.70 | $18.00 | $16.96 | |
| RevenueRevenue | $91,154,000,000 | $96,571,000,000 | $110,360,000,000 | $125,843,000,000 | $143,015,000,000 | $168,088,000,000 | $198,270,000,000 | $211,915,000,000 | $245,122,000,000 | $281,724,000,000 | $331,839,000,000 | $331,839,000,000 | |
| Free Cash FlowCash Flow | $24,982,000,000 | $31,378,000,000 | $32,252,000,000 | $38,260,000,000 | $45,234,000,000 | $56,118,000,000 | $65,149,000,000 | $59,475,000,000 | $74,071,000,000 | $71,611,000,000 | $66,987,000,000 | $66,987,000,000 | |
| ROIC (%)ROIC | 14.2% | 12.0% | 7.7% | 17.2% | 18.8% | 23.5% | 26.3% | 22.6% | 22.3% | 21.6% | 20.6% | — |
The exact underlying data used to compute the growth rates and grades above. The highlighted TTM column is the trailing twelve months through the most recently reported quarter.
Ticker INVESTigator Price Target
Analyst Data
Price Target
Where the stock trades today vs. the range of 12-month price targets from covering analysts.
83 firms rate it — 68 buy, 15 hold · Most recent Oct 2026
MSFT Stock FAQ
What is MSFT's stock price target?
The average 12-month analyst price target for MSFT is $591.58, with a range of $440.00 to $725.00. That is +11.8% from the current price of $529.05.
Do analysts rate MSFT a buy?
Most rate it a buy. Of 83 firms covering Microsoft, the ratings are 68 buy or strong buy, 15 hold and 0 sell or strong sell.
How fast is Microsoft growing?
Annual growth rates for MSFT. EPS: 23.8% over 10 years, 17.3% over 5 years, 23.9% over 1 year. Revenue: 13.8% over 10 years, 14.6% over 5 years, 17.8% over 1 year. Free cash flow: 10.4% over 10 years, 3.6% over 5 years, -6.5% over 1 year. Book value per share: 20.8% over 10 years, 26.0% over 5 years, 28.9% over 1 year.
What is MSFT's ROIC?
Microsoft's return on invested capital (ROIC) was 20.6% in fiscal 2026. Its 10-year average ROIC is 19.3%. ROIC above 10% is generally a sign of a business with a durable competitive advantage.
What is MSFT's P/E ratio?
MSFT's current P/E ratio is 31.2, compared with a historical average of 32.8. Trailing earnings per share are $16.96.
What is Microsoft's market cap and stock price?
MSFT last traded at $529.05 as of October 19, 2026. Its 52-week range is $349.20 to $553.72. Microsoft has a market cap of $3.93T.
Exhibit D Related Coverage
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Data as of October 19, 2026. Findings are derived from historical fundamentals — not a forecast, not advice. Cross-examine before you invest.
Grades are produced by Ticker INVESTigator's own model from public financial data and are for informational and educational purposes only. They are not investment advice or a recommendation to buy or sell any security. Do your own research.