Microsoft Corporation (MSFT) has received an average target price from analysts of 105.49 amounting to a recommendation rating of Overweight. That comes from 35 different analysts. Perhaps, the driver for that assessment comes from the company’s valuations. Right now, we are looking at a median price-to-earnings ratio for this calendar year of 25.96.
To give a sense of trend, the same data point on the estimate for next year is currently sitting at 24.20 times earnings. Drilling down a bit further, this quarter, we are looking at an average estimate from analysts for earnings per share level of 29.00. That shift to 29.00 heading into next quarter.
Microsoft Corp. engages in the provision of developing and marketing software and hardware services. Its products include operating systems for computing devicesserversphones and intelligent devices. It also offers server applications for distributed computing environmentsproductivity applicationsbusiness solution applicationsdesktop and server management toolssoftware development toolsvideo gamesand online advertising. It operates through the following segments: Productivity and Business Processes; Intelligent Cloud; and More Personal Computing. The Productivity and Business Processes segment consists of products and cloud services in portfolio of productivitycommunicationand information services. It comprises of office commercialoffice consumerand microsoft dynamics business solutions. The Intelligent Cloud segment offers hybrid server products and cloud services. It comprises of server products and cloud services and enterprise services. The More Personal Computing segment comprises of windowsdevicesgamingand search advertising. The company was founded by William Henry Gates III in 1975 and is headquartered in RedmondWA.
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Microsoft Corp. Showcases One Horizon Group’s Global Growth Strategy that Utilizes the Microsoft Azure Cloud Computing Platform One Horizon Group, Inc. (NASDAQ: OHGI), the award winning1 mobile VoIP software provider for telecommunications operators, today announced that Microsoft (NASDAQ: MSFT) published a feature on how One Horizon Group improves its time to market,…
Stock of Microsoft Corporation (MSFT) last opened at $93.30 and traded at $93.95 x 400. More than 31,001,061 shares exchanged hands compared to an average daily volume of 34,724,232 shares. At the current pps, the market capitalization stands at 710.768B.
Investors try to use stocks with high beta values to quickly recoup their investments after sharp market losses. Microsoft Corporation (MSFT) currently has a Beta value of 1.19 . Beta is a measurement of a stock’s price fluctuations, which is often called volatility and is used by investors to gauge how quickly a stock’s price will rise or fall. A stock with a beta of greater than 1.0 is riskier and has greater price fluctuations, while stocks with beta values of less than 1.0 are steadier and generally larger companies. Beta is often measured against the S&P; 500 index. An S&P; 500 stock with a beta of 2.0 produced a 20 percent increase in returns during a period of time when the S&P; 500 Index grew only 10 percent. This same measurement also means the stock would lose 20 percent when the market dropped by only 10 percent.
Next, let’s take a look at Microsoft Corporation (MSFT) current P/E ratio. Microsoft Corporation (MSFT) currently has a PE ratio of 75.05. PE ratio is an important parameter to look at when trading a stock mostly because it is easy to calculate. There are a couple of ways to calculate PE ratio either by dividing share price by earnings per share or dividing the market cap by net income. It is important to note that the earnings are usually taken from the trailing twelve months (TTM). Nevertheless, P/E tells us how much an investor is willing to pay for $1 of a company’s earnings. The long-term average P/E is around 15, so on average, investors are willing to pay $15 for every dollar of earnings. Another useful way to look at this: Turn the P/E ratio around to look at the E/P ratio, which when expressed as a percentage gives us the earnings yield. For instance: 1/15 gives us an earnings yield of 6.67%.
While we have already looked at Microsoft Corporation (MSFT) beta and P/E ratio, the EPS cannot be ignored. Microsoft Corporation (MSFT) EPS for the trailing twelve months was 1.23. Traders and investors often use earnings per share (TTM) to determine a company’s profitability for the past year. So in essence, EPS is the amount of a company’s net income per share of common stock. Earnings per share equal the company’s net income less any dividends paid on preferred stock divided by the weighted average number of common stock shares outstanding during the year. Microsoft Corporation (MSFT) is estimated to release its next earnings report on Apr 26, 2018. It would be interesting to see how the earnings fair out considering the recent developments.
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