Price to FCFE (P/FCFE)
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- Balance Sheet: Liabilities and Stockholders’ Equity
- Common-Size Income Statement
- Common-Size Balance Sheet: Assets
- Analysis of Long-term (Investment) Activity Ratios
- Enterprise Value to EBITDA (EV/EBITDA)
- Selected Financial Data since 2005
- Debt to Equity since 2005
- Price to Sales (P/S) since 2005
- Analysis of Debt
- Aggregate Accruals
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Free Cash Flow to Equity (FCFE)
Microsoft Corp., FCFE calculation
US$ in millions
Based on: 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), 10-K (reporting date: 2020-06-30).
- Net Cash from Operations
- There is a consistent upward trend in net cash generated from operations over the analyzed periods. Starting from $60,675 million in mid-2020, the figure increased significantly to $76,740 million in 2021, followed by further growth to $89,035 million in 2022. Although there was a slight decline in 2023 to $87,582 million, the amount subsequently rose sharply in 2024 and 2025 to $118,548 million and $136,162 million respectively. This overall increase suggests strengthening operational efficiency and cash-generating capability.
- Free Cash Flow to Equity (FCFE)
- FCFE also demonstrates a general upward movement from $36,299 million in 2020 to a peak of $74,646 million in 2024. The growth is notable in the early years, with a rise to $50,614 million in 2021 and $56,126 million in 2022, and then stabilizing around $56,725 million in 2023. However, a decline occurs in 2025 to $62,649 million after a peak in 2024. Despite this dip, the overall trend reflects an improvement in the amount of cash available to equity shareholders, highlighting potentially increasing returns or reinvestment capacity.
- Comparative Insights
- Both cash flow measures indicate strengthening financial health with some volatility in the later years. The operational cash flow shows a robust and increasing trend, while FCFE, although following a similar upward trajectory, exhibits a moderation in growth and a slight decrease in the final year recorded. This may suggest shifts in capital expenditures, debt servicing, or other financing activities affecting the free cash flow available to equity holders.
Price to FCFE Ratio, Current
Microsoft Corp., current P/FCFE calculation, comparison to benchmarks
| No. shares of common stock outstanding | |
| Selected Financial Data (US$) | |
| Free cash flow to equity (FCFE) (in millions) | |
| FCFE per share | |
| Current share price (P) | |
| Valuation Ratio | |
| P/FCFE | |
| Benchmarks | |
| P/FCFE, Competitors1 | |
| Accenture PLC | |
| Adobe Inc. | |
| Cadence Design Systems Inc. | |
| CrowdStrike Holdings Inc. | |
| Datadog Inc. | |
| Fair Isaac Corp. | |
| International Business Machines Corp. | |
| Intuit Inc. | |
| Oracle Corp. | |
| Palantir Technologies Inc. | |
| Palo Alto Networks Inc. | |
| Salesforce Inc. | |
| ServiceNow Inc. | |
| Synopsys Inc. | |
| Workday Inc. | |
| P/FCFE, Sector | |
| Software & Services | |
| P/FCFE, Industry | |
| Information Technology | |
Based on: 10-K (reporting date: 2025-06-30).
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, 2025 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | |||||||
| Selected Financial Data (US$) | |||||||
| Free cash flow to equity (FCFE) (in millions)2 | |||||||
| FCFE per share3 | |||||||
| Share price1, 4 | |||||||
| Valuation Ratio | |||||||
| P/FCFE5 | |||||||
| Benchmarks | |||||||
| P/FCFE, Competitors6 | |||||||
| Accenture PLC | |||||||
| Adobe Inc. | |||||||
| Cadence Design Systems Inc. | |||||||
| CrowdStrike Holdings Inc. | |||||||
| Datadog Inc. | |||||||
| Fair Isaac Corp. | |||||||
| International Business Machines Corp. | |||||||
| Intuit Inc. | |||||||
| Oracle Corp. | |||||||
| Palantir Technologies Inc. | |||||||
| Palo Alto Networks Inc. | |||||||
| Salesforce Inc. | |||||||
| ServiceNow Inc. | |||||||
| Synopsys Inc. | |||||||
| Workday Inc. | |||||||
| P/FCFE, Sector | |||||||
| Software & Services | |||||||
| P/FCFE, Industry | |||||||
| Information Technology | |||||||
Based on: 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), 10-K (reporting date: 2020-06-30).
1 Data adjusted for splits and stock dividends.
3 2025 Calculation
FCFE per share = FCFE ÷ No. shares of common stock outstanding
= ÷ =
4 Closing price as at the filing date of Microsoft Corp. Annual Report.
5 2025 Calculation
P/FCFE = Share price ÷ FCFE per share
= ÷ =
6 Click competitor name to see calculations.
- Share Price Trend
- The share price experienced a consistent upward trajectory from June 30, 2020, through June 30, 2025. Starting at $205.01, it rose steadily each year, reaching $513.24 by June 30, 2025. Notable increases occurred particularly between 2023 and 2025, indicating strong market confidence or positive investor sentiment during this period.
- Free Cash Flow to Equity (FCFE) per Share Trend
- The FCFE per share showed a general increasing trend over the observed years, moving from $4.80 in 2020 to a peak of $10.04 in 2024 before decreasing to $8.43 in 2025. This pattern suggests improving cash generation ability relative to equity shareholders up until 2024, followed by a modest decline in 2025.
- Price to FCFE (P/FCFE) Ratio Trend
- The P/FCFE ratio demonstrated fluctuations rather than a clear trend. It started at 42.74 in 2020, remained relatively stable through 2021 and 2022 with some minor variation, rose again in 2023 to 43.32, slightly decreased in 2024 to 42.11, and sharply increased to 60.89 in 2025. The significant rise in 2025 suggests the share price increased at a faster rate than FCFE per share in that year, potentially indicating increased market valuation premiums or expectations not yet reflected in cash flows.
- Insights
- The company’s growing share price alongside generally rising FCFE per share indicates improving financial health and investor confidence. The relatively stable P/FCFE ratio for most years implies the market's valuation remained proportionate to the cash flows generated, except in 2025 where the ratio spike suggests potential overvaluation or heightened growth expectations. The decline in FCFE per share in 2025 requires attention, as it contrasts with the share price growth, potentially indicating emerging challenges in cash flow generation or shifts in capital allocation policy.