Think of Enterprise Value as the theoretical takeover price. It is more comprehensive than market capitalization (Market Cap), which only includes common equity. Enterprise Value is calculated as the market cap plus debt and minority interest and preferred shares, minus total cash, cash equivalents, and marketable securities.
EV-to-EBIT is calculated as Enterprise Value divided by its EBIT. As of today, Microsoft's Enterprise Value is $3,046,886 Mil.
Microsoft's EBIT for the trailing twelve months (TTM) ended in Dec. 2023 was $103,622 Mil. Therefore, Microsoft's EV-to-EBIT ratio for today is 29.40.
EV-to-EBITDA is calculated as Enterprise Value divided by its EBITDA. As of today, Microsoft's Enterprise Value is $3,046,886 Mil.
Microsoft's EBITDA for the trailing twelve months (TTM) ended in Dec. 2023 was $120,925 Mil. Therefore, Microsoft's EV-to-EBITDA ratio for today is 25.20.
EV-to-Revenue is calculated as Enterprise Value divided by its Revenue. As of today, Microsoft's Enterprise Value is $3,046,886 Mil.
Microsoft's Revenue for the trailing twelve months (TTM) ended in Dec. 2023 was $227,583 Mil. Therefore, Microsoft's EV-to-Revenue ratio for today is 13.39.
Microsoft Enterprise Value Historical Data
The historical data trend for Microsoft's Enterprise Value can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Competitive Comparison of Microsoft's Enterprise Value
For the Software - Infrastructure subindustry, Microsoft's Enterprise Value, along with its competitors' market caps and Enterprise Value data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Microsoft's Enterprise Value Distribution in the Software Industry
For the Software industry and Technology sector, Microsoft's Enterprise Value distribution charts can be found below:
* The bar in red indicates where Microsoft's Enterprise Value falls into.
Microsoft Enterprise Value Calculation
Enterprise Value is calculated as the market cap plus debt and minority interest and preferred shares, minus total cash, cash equivalents, and marketable securities.
Microsoft's Enterprise Value for the fiscal year that ended in Jun. 2023 is calculated as
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Microsoft (NAS:MSFT) Enterprise Value Explanation
When an investor buy a company, the investor needs to pay not only the common shares, he/she also needs to pay the shareholders of Preferred Stocks. He also assumes the debt of the company, and receives the cash on the company's balance sheet.
If a company has more cash than debt, the investor actually pays less than the Market Cap because he immediately owns the cash once the transaction goes through.
The market value of Preferred Stock needs to be added to the market value of common stocks in the calculation of Enterprise Value.
For the companies with the same Market Cap, the smaller the Enterprise Value is, the cheaper the company is.
Enterprise Value can be negative when the company's net cash is more than its Market Cap. In this case the investor is basically getting the company for free and get paid for that.
1. EV-to-EBIT is calculated as Enterprise Value divided by its EBIT.
Microsoft's current Enterprise Value is $3,046,886 Mil.
Microsoft's EBIT for the trailing twelve months (TTM) ended in Dec. 2023 adds up the quarterly data reported by the company within the most recent 12 months, which was $103,622 Mil.
2. EV-to-EBITDA is calculated as Enterprise Value divided by its EBITDA.
Microsoft's current Enterprise Value is $3,046,886 Mil.
Microsoft's EBITDA for the trailing twelve months (TTM) ended in Dec. 2023 adds up the quarterly data reported by the company within the most recent 12 months, which was $120,925 Mil.
Microsoft's current Enterprise Value is $3,046,886 Mil.
Microsoft's Revenue for the trailing twelve months (TTM) ended in Dec. 2023 adds up the quarterly data reported by the company within the most recent 12 months, which was $227,583 Mil.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Microsoft Enterprise Value Related Terms
Thank you for viewing the detailed overview of Microsoft's Enterprise Value provided by GuruFocus.com. Please click on the following links to see related term pages.
Microsoft develops and licenses consumer and enterprise software. It is known for its Windows operating systems and Office productivity suite. The company is organized into three equally sized broad segments: productivity and business processes (legacy Microsoft Office, cloud-based Office 365, Exchange, SharePoint, Skype, LinkedIn, Dynamics), intelligence cloud (infrastructure- and platform-as-a-service offerings Azure, Windows Server OS, SQL Server), and more personal computing (Windows Client, Xbox, Bing search, display advertising, and Surface laptops, tablets, and desktops).
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