Added to YB: 2026-09-02
Pitch date: 2026-08-29
MSFT [bullish]
Microsoft Corporation
-1.83%
current return
Author Info
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Company Info
Microsoft Corporation, a technology company, develops and supports a portfolio of technology solutions for individuals and businesses worldwide.
Market Cap
$3.8T
Pitch Price
$510.38
Price Target
N/A
Dividend
0.71%
EV/EBITDA
18.77
P/E
28.61
EV/Sales
11.65
Sector
Software
Category
growth
Microsoft ($MSFT) - Deep Dive
MSFT: Microsoft’s defensible enterprise franchise and AI monetization support a long-term compounding case, but it has permanently become a capital-intensive hyperscale operator. FY2026 operating cash flow of $182.9B fully funded $115.9B of CapEx, while Azure exceeded $100B and commercial RPO reached $678B. At ~$500, valuation is neutral at 21 embedded years, so returns should primarily follow assumed 12-15% FCF-per-share growth; the main risk is AI adoption lagging the resulting $75-85B+ maintenance CapEx floor.
Read full article (19 min)