Microsoft Corp., current enterprise value calculation

Current share price (P)	$464.72
No. shares of common stock outstanding	7,425,545,491
US$ in millions
Common equity (market value)¹	3,450,800)
Total equity	3,450,800)
Add: Short-term debt (per books)	—)
Add: Current portion of long-term debt (per books)	9,227)
Add: Current finance lease liabilities (per books)	4,290)
Add: Long-term debt, excluding current portion (per books)	31,067)
Add: Long-term finance lease liabilities (per books)	62,304)
Total equity and debt	3,557,688)
Less: Cash and cash equivalents	20,935)
Less: Short-term investments	55,908)
Enterprise value (EV)	3,480,845)

Based on: 10-K (reporting date: 2026-06-30).

¹ Common equity (market value) = Share price × No. shares of common stock outstanding
= 464.72 × 7,425,545,491

Microsoft Corp., EV calculation

	Jun 30, 2026	Jun 30, 2025	Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021
Share price^1, 2	$390.54	$513.24	$422.92	$330.72	$276.41	$286.50
No. shares of common stock outstanding¹	7,425,545,491	7,433,166,379	7,433,038,381	7,429,763,722	7,457,891,872	7,514,891,248
US$ in millions
Common equity (market value)³	2,899,973)	3,814,998)	3,143,581)	2,457,171)	2,061,436)	2,153,016)
Total equity	2,899,973)	3,814,998)	3,143,581)	2,457,171)	2,061,436)	2,153,016)
Add: Short-term debt (book value)	—)	—)	6,693)	—)	—)	—)
Add: Current portion of long-term debt (book value)	9,227)	2,999)	2,249)	5,247)	2,749)	8,072)
Add: Current finance lease liabilities (book value)	4,290)	3,172)	2,349)	1,197)	1,060)	791)
Add: Long-term debt, excluding current portion (book value)	31,067)	40,152)	42,688)	41,990)	47,032)	50,074)
Add: Long-term finance lease liabilities (book value)	62,304)	43,000)	24,796)	15,870)	13,842)	11,750)
Total equity and debt	3,006,861)	3,904,321)	3,222,356)	2,521,475)	2,126,119)	2,223,703)
Less: Cash and cash equivalents	20,935)	30,242)	18,315)	34,704)	13,931)	14,224)
Less: Short-term investments	55,908)	64,323)	57,228)	76,558)	90,826)	116,110)
Enterprise value (EV)	2,930,018)	3,809,756)	3,146,813)	2,410,213)	2,021,362)	2,093,369)

Based on: 10-K (reporting date: 2026-06-30), 10-K (reporting date: 2025-06-30), 10-K (reporting date: 2024-06-30), 10-K (reporting date: 2023-06-30), 10-K (reporting date: 2022-06-30), 10-K (reporting date: 2021-06-30).

¹ Data adjusted for splits and stock dividends.

² Closing price as at the filing date of Microsoft Corp. Annual Report.

³ 2026 Calculation
Common equity (market value) = Share price × No. shares of common stock outstanding
= 390.54 × 7,425,545,491

An analysis of the enterprise value (EV) and associated equity metrics reveals a period of substantial expansion followed by a significant correction. The trajectory of the enterprise value closely mirrors the market value of common equity, indicating that equity valuation is the primary driver of the overall business value across the reported periods.

Enterprise Value Trajectory: A consistent growth pattern is observed from June 30, 2022, to June 30, 2025. During this interval, the enterprise value rose from US$ 2,021,362 million to a peak of US$ 3,809,756 million, representing an increase of approximately 88%. This upward momentum is followed by a sharp contraction by June 30, 2026, where the value decreased to US$ 2,930,018 million.
Correlation Between Market Equity and Enterprise Value: There is a near-perfect correlation between the market value of common equity and the enterprise value. In several periods, such as 2021, 2022, 2023, and 2025, the enterprise value is slightly lower than the market value of equity, which suggests a net cash position. Conversely, in 2024 and 2026, the enterprise value marginally exceeds the market value of equity, indicating a shift toward a net debt position, although the variance remains minimal.
Capital Structure and Leverage: The relationship between total equity and total equity and debt remains stable. Total equity and debt peaked in 2025 at US$ 3,904,321 million. The narrow gap between total equity and the combined equity and debt figure demonstrates a capital structure heavily weighted toward equity, with debt playing a secondary role in the overall financing mix.

AI Ask an analyst for more

Download chart

Microsoft Corp. (NASDAQ:MSFT)

Enterprise Value (EV)

Current Enterprise Value (EV)

Historical Enterprise Value (EV)