Price to FCFE (P/FCFE)

Free Cash Flow to Equity (FCFE)
P to FCFE Ratio, Current
P to FCFE Ratio, Historical

Free Cash Flow to Equity (FCFE)

Microsoft Corp., FCFE calculation

US$ in millions

12 months ended:	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020	Jun 30, 2019	Jun 30, 2018	Jun 30, 2017
Net income	72,738)	61,271)	44,281)	39,240)	16,571)	21,204)
Net noncash charges	15,851)	16,405)	17,877)	9,079)	6,846)	16,651)
Changes in operating assets and liabilities	446)	(936)	(1,483)	3,866)	20,467)	1,652)
Net cash from operations	89,035)	76,740)	60,675)	52,185)	43,884)	39,507)
Repayments of short-term debt, maturities of 90 days or less, net	—)	—)	—)	—)	(7,324)	(4,963)
Proceeds from issuance of debt	—)	—)	—)	—)	7,183)	44,344)
Cash premium on debt exchange	—)	(1,754)	(3,417)	—)	—)	—)
Repayments of debt	(9,023)	(3,750)	(5,518)	(4,000)	(10,060)	(7,922)
Additions to property and equipment	(23,886)	(20,622)	(15,441)	(13,925)	(11,632)	(8,129)
Free cash flow to equity (FCFE)	56,126)	50,614)	36,299)	34,260)	22,051)	62,837)

Based on: 10-K (reporting date: 2022-06-30), 10-K (reporting date: 2021-06-30), 10-K (reporting date: 2020-06-30), 10-K (reporting date: 2019-06-30), 10-K (reporting date: 2018-06-30), 10-K (reporting date: 2017-06-30).

Item	Description	The company
FCFE	Free cash flow to equity is the cash flow available to Microsoft Corp. equity holders after all operating expenses, interest, and principal payments have been paid and necessary investments in working and fixed capital have been made.	Microsoft Corp. FCFE increased from 2020 to 2021 and from 2021 to 2022.

Price to FCFE Ratio, Current

Microsoft Corp., current P/FCFE calculation, comparison to benchmarks

No. shares of common stock outstanding	7,443,803,533
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in millions)	56,126)
FCFE per share	7.54
Current share price (P)	288.30
Valuation Ratio
P/FCFE	38.24
Benchmarks
P/FCFE, Competitors¹
Accenture PLC	20.51
Adobe Inc.	23.90
Fidelity National Information Services Inc.	9.32
International Business Machines Corp.	12.14
Intuit Inc.	14.64
Mastercard Inc.	33.00
Oracle Corp.	—
PayPal Holdings Inc.	12.45
Salesforce Inc.	33.92
ServiceNow Inc.	45.38
Visa Inc.	23.07
P/FCFE, Sector
Software & Services	29.66
P/FCFE, Industry
Information Technology	27.65

Based on: 10-K (reporting date: 2022-06-30).

¹ Click competitor name to see calculations.

If the company P/FCFE is lower then the P/FCFE of benchmark then company is relatively undervalued.
Otherwise, if the company P/FCFE is higher then the P/FCFE of benchmark then company is relatively overvalued.

Price to FCFE Ratio, Historical

Microsoft Corp., historical P/FCFE calculation, comparison to benchmarks

	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020	Jun 30, 2019	Jun 30, 2018	Jun 30, 2017
No. shares of common stock outstanding¹	7,457,891,872	7,514,891,248	7,567,652,935	7,635,409,400	7,668,217,316	7,702,243,979
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in millions)²	56,126)	50,614)	36,299)	34,260)	22,051)	62,837)
FCFE per share³	7.53	6.74	4.80	4.49	2.88	8.16
Share price^1, 4	276.41	286.50	205.01	138.06	108.04	72.26
Valuation Ratio
P/FCFE⁵	36.73	42.54	42.74	30.77	37.57	8.86
Benchmarks
P/FCFE, Competitors⁶
Accenture PLC	17.91	25.76	19.01	19.50	18.11	20.24
Adobe Inc.	21.32	34.26	41.36	41.90	19.87	35.56
Fidelity National Information Services Inc.	11.07	13.66	42.96	9.51	22.12	—
International Business Machines Corp.	11.97	48.45	9.43	4.39	11.07	—
Intuit Inc.	13.86	86.74	17.36	34.61	29.29	42.22
Mastercard Inc.	33.60	36.06	32.34	35.41	33.72	—
Oracle Corp.	—	8.36	6.27	22.31	10.78	8.16
PayPal Holdings Inc.	13.25	27.08	34.78	20.59	18.96	—
Salesforce Inc.	16.56	49.52	50.40	29.09	52.51	—
ServiceNow Inc.	44.44	64.80	50.12	74.57	327.16	—
Visa Inc.	21.56	37.21	26.18	32.21	30.19	22.70
P/FCFE, Sector
Software & Services	28.09	33.07	27.32	22.65	24.90	—
P/FCFE, Industry
Information Technology	25.94	27.66	24.45	19.78	22.34	—

¹ Data adjusted for splits and stock dividends.

² See details »

³ 2022 Calculation
FCFE per share = FCFE ÷ No. shares of common stock outstanding
= 56,126,000,000 ÷ 7,457,891,872 = 7.53

⁴ Closing price as at the filing date of Microsoft Corp. Annual Report.

⁵ 2022 Calculation
P/FCFE = Share price ÷ FCFE per share
= 276.41 ÷ 7.53 = 36.73

⁶ Click competitor name to see calculations.

Valuation ratio	Description	The company
P/FCFE	Price to free cash flow to equity is cash valuation indicator of stockholders’ equity.	Microsoft Corp. P/FCFE ratio decreased from 2020 to 2021 and from 2021 to 2022.

Microsoft Corp. (NASDAQ:MSFT)

Price to FCFE (P/FCFE)

Free Cash Flow to Equity (FCFE)

Price to FCFE Ratio, Current

Price to FCFE Ratio, Historical