Microsoft Excel LibreOffice Calc

Microsoft Corp. (MSFT)

Enterprise Value (EV)

Difficulty: Intermediate

Current Enterprise Value (EV)

Microsoft Corp., current enterprise value calculation

Microsoft Excel LibreOffice Calc
Current share price (P) $ 117.66
No. shares of common stock outstanding 7,672,213,446
USD $ in millions
Common equity (market value) 902,713 
Total equity 902,713 
Add: Short-term debt (per books) – 
Add: Current portion of long-term debt (per books) 3,998 
Add: Long-term debt, excluding current portion (per books) 72,242 
Add: Operating lease liabilities (per books) 5,568 
Total equity and debt 984,521 
Less: Cash and cash equivalents 11,946 
Less: Short-term investments 121,822 
Enterprise value (EV) 850,753 

Based on: 10-K (filing date: 2018-08-03).

Historical Enterprise Value (EV)

Microsoft Corp., EV calculation

Microsoft Excel LibreOffice Calc
Jun 30, 2018 Jun 30, 2017 Jun 30, 2016 Jun 30, 2015 Jun 30, 2014 Jun 30, 2013
No. shares of common stock outstanding1 7,668,217,316 7,702,243,979 7,792,515,573 7,997,980,969 8,239,848,789 8,329,956,402
Share price1, 2 (USD $) 108.04 72.26 56.21 46.70 43.16 31.85
USD $ in millions
Common equity (market value) 828,474  556,564  438,017  373,506  355,632  265,309 
Total equity 828,474  556,564  438,017  373,506  355,632  265,309 
Add: Short-term debt (per books) –  9,072  12,904  4,985  2,000  – 
Add: Current portion of long-term debt (per books) 3,998  1,049  –  2,499  –  2,999 
Add: Long-term debt, excluding current portion (per books) 72,242  76,073  40,783  27,808  20,645  12,601 
Add: Operating lease liabilities (per books) 5,568  –  –  –  –  – 
Total equity and debt 910,282  642,758  491,704  408,798  378,277  280,909 
Less: Cash and cash equivalents 11,946  7,663  6,510  5,595  8,669  3,804 
Less: Short-term investments 121,822  125,318  106,730  90,931  77,040  73,218 
Enterprise value (EV) 776,514  509,777  378,464  312,272  292,568  203,887 

Based on: 10-K (filing date: 2018-08-03), 10-K (filing date: 2017-08-02), 10-K (filing date: 2016-07-28), 10-K (filing date: 2015-07-31), 10-K (filing date: 2014-07-31), 10-K (filing date: 2013-07-30).

1 Data adjusted for splits and stock dividends.
2 Close price on the filing date of Microsoft Corp.’s Annual Report.

Item Description The company
EV Enterprise value is total company value (the market value of common equity, debt, and preferred equity) minus the value of cash and short-term investments. Microsoft Corp.’s EV increased from 2016 to 2017 and from 2017 to 2018.