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Microsoft Corp (NAS:MSFT)
Price-to-Free-Cash-Flow Ratio
14.17 (As of Today)

As of today, Microsoft Corp's share price is $45.21. Microsoft Corp's Free Cash Flow per Share for the trailing twelve months (TTM) ended in Jun. 2014 was $3.19. Hence, Microsoft Corp's Price-to-Free-Cash-Flow Ratio for today is 14.17.

MSFT' s 10-Year Price-to-Free-Cash-Flow ratio Range
Min: 7.73   Max: 26.68
Current: 14.1

7.73
26.68

During the past 13 years, Microsoft Corp's highest Price-to-Free-Cash-Flow Ratio was 26.68. The lowest was 7.73. And the median was 13.91.

MSFT's Price-to-Free-Cash-Flow ratiois ranked higher than
89% of the 1857 Companies
in the Global Software - Infrastructure industry.

( Industry Median: 9999.00 vs. MSFT: 14.10 )

Microsoft Corp's Free Cash Flow per Share for the three months ended in Jun. 2014 was $0.98. Its Free Cash Flow per Share for the trailing twelve months (TTM) ended in Jun. 2014 was $3.19.

During the past 12 months, the average Free Cash Flow per Share Growth Rate of Microsoft Corp was 9.20% per year. During the past 3 years, the average Free Cash Flow per Share Growth Rate was 3.50% per year. During the past 5 years, the average Free Cash Flow per Share Growth Rate was 5.20% per year. During the past 10 years, the average Free Cash Flow per Share Growth Rate was 11.90% per year.

During the past 13 years, Microsoft Corp's highest 3-Year average Free Cash Flow per Share Growth Rate was 67.90% per year. The lowest was -3.80% per year. And the median was 13.20% per year.


Definition

Microsoft Corp's Price-to-Free-Cash-Flow ratio for today is calculated as

Price-to-Free-Cash-Flow Ratio=Share Price/Free Cash Flow per Share (TTM)
=45.21/3.19
=14.17

Microsoft Corp's Share Price of today is $45.21.
Microsoft Corp's Free Cash Flow per Share for the trailing twelve months (TTM) ended in Jun. 2014 was 0.83 (Sep. 2013 ) + 0.32 (Dec. 2013 ) + 1.06 (Mar. 2014 ) + 0.98 (Jun. 2014 ) = $3.19.

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

It can also be calculated from the numbers for the whole company:

Price-to-Free-Cash-Flow Ratio=Market Cap/Free Cash Flow

Explanation

Free Cash Flow is considered more important than earnings by value investors. The reason is because, in principle, only the net cash that can be taken from the business belongs to shareholders. This Free Cash Flow can be used to grow the business, reduce debt or return to shareholders in dividends or share buybacks.

In a DCF Calculation Free Cash Flow is used to determine the intrinsic value of companies.


Be Aware

In real business, Free Cash Flow can be affected by the change in accounts receivable, accounts payable, management’s decision on expansion, etc. Therefore, investors should look at the Free Cash Flow over the longer term. Long-term average of Free Cash Flow is a more reliable indicator for real free cash flow.


Related Terms

Free Cash Flow, Free Cash Flow per Share, P/S Ratio, P/B Ratio, P/E Ratio


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Microsoft Corp Annual Data

Jun05Jun06Jun07Jun08Jun09Jun10Jun11Jun12Jun13Jun14
pfcf 17.2519.1018.7714.1813.439.289.068.8711.8313.07

Microsoft Corp Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
pfcf 9.968.878.688.198.7711.8311.8013.9615.1813.07
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