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MicrosoftXSWX:MSFT 98 Capex-to-Operating-Cash-Flow is 0.65 as of Jun. 2026, which is 141% above its 10-year median of 0.27. GuruFocus rates XSWX:MSFT with a GF Score™ of 98/100 and a GF Value™ of CHF473.92 (Modestly Undervalued). The stock has 3 warning signs investors should review. Among 1,358 Software companies, Microsoft ranks worse than 71.65% on this metric.
Capex-to-Operating-Cash-Flow assesses how much of a company’s cash flow from operations is being devoted to capital expenditure. It’s also useful to distinguish whether the company is capital intensive or not.
Microsoft (XSWX:MSFT) Capex-to-Operating-Cash-Flow Explanation
Capex-to-Operating-Cash-Flow ratio assesses how much of a company’s Cash Flow from Operations is being devoted to Capital Expenditure. It is a good indicator in terms of how much the company is focused on growth. In general, a high Capex-to-Operating-Cash-Flow ratio indicates that the company is investing more in physical assets and is focused on growth and expansion. Conversely, lower ratio could indicate that a company has reached maturity and is no longer pursuing aggressive growth.
Moreover, the ratio is also useful to distinguish whether the company is capital intensive or not. If the ratio is large, then the company tends to be capital intensive. Lower ratio suggests that it’s a capital-light business. The ratio can be combined with ROIC % to identify whether the company is an asset-light business that has a high return on invested capital. This is one question investors commonly ask to see if a company qualifies as a good company.
Microsoft Capex-to-Operating-Cash-Flow Related Terms
Microsoft Capex-to-Operating-Cash-Flow Historical Data
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The historical data trend for Microsoft's Capex-to-Operating-Cash-Flow 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.
XSWX:MSFT vs PLTR, ORCL, PANW: Capex-to-Operating-Cash-Flow Comparison
For the Software - Infrastructure subindustry, Microsoft's Capex-to-Operating-Cash-Flow, along with its competitors' market caps and Capex-to-Operating-Cash-Flow 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 Capex-to-Operating-Cash-Flow vs Software Industry
For the Software industry and Technology sector, Microsoft's Capex-to-Operating-Cash-Flow distribution charts can be found below:
* The bar in red indicates where Microsoft's Capex-to-Operating-Cash-Flow falls into.
* 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.
What does a Capex-to-Operating-Cash-Flow of 0.65 mean?
Microsoft (XSWX:MSFT) has a Capex-to-Operating-Cash-Flow of 0.65 as of Jun. 2026. Capex to Operating Cash Flow ratio assesses how much of a company’s cash flow from operations is being devoted to capital expenditure. View historical data on Microsoft and its competitors. This is 141% above median its historical median of 0.27. Over the past decade, Microsoft's Capex-to-Operating-Cash-Flow has ranged from 0.21 to 0.63. According to the industry distribution chart, Microsoft ranks #973 out of 1358 companies in the Software industry, placing it in the top 71.6%.
Is Microsoft's Capex-to-Operating-Cash-Flow too high?
Microsoft's current Capex-to-Operating-Cash-Flow of 0.65 is 141% above median its 10-year median of 0.27. Over the past 10 years, this metric has ranged from a low of 0.21 to a high of 0.63. The Software industry median Capex-to-Operating-Cash-Flow is 0.26. Microsoft's value of 0.65 is 150% above this industry median. Based on the distribution chart, Microsoft ranks #973 out of 1358 companies in the Software industry, which is below the industry midpoint. Overall, Microsoft has a GF Score™ of 98/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Microsoft's Capex-to-Operating-Cash-Flow compare to PLTR and ORCL?
According to the Software industry distribution chart, Microsoft ranks #973 out of 1358 companies for Capex-to-Operating-Cash-Flow. This places Microsoft in the lower half of its industry. The industry median Capex-to-Operating-Cash-Flow is 0.26. Microsoft's value of 0.65 is 150% above this benchmark. Historically, Microsoft's own Capex-to-Operating-Cash-Flow has ranged from 0.21 to 0.63 over the past decade. While the company's 10-year median is 0.27 vs. the industry median of 0.26, Microsoft has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Capex-to-Operating-Cash-Flow for a Software company?
The median Capex-to-Operating-Cash-Flow among Software companies is 0.26, based on 1,358 companies in the industry. Companies in the top quartile (top 25%) have a Capex-to-Operating-Cash-Flow significantly above this median, while those in the bottom quartile fall well below. However, Capex-to-Operating-Cash-Flow should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Microsoft's current Capex-to-Operating-Cash-Flow of 0.65 is 150% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Capex-to-Operating-Cash-Flow mean?
A high Capex-to-Operating-Cash-Flow can signal that a stock is expensive relative to its fundamentals. Capex to Operating Cash Flow ratio assesses how much of a company’s cash flow from operations is being devoted to capital expenditure. View historical data on Microsoft and its competitors. For the Software industry, the median Capex-to-Operating-Cash-Flow is 0.26 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Microsoft's current Capex-to-Operating-Cash-Flow is 0.65, which is 141% above median its own 10-year median of 0.27. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Microsoft stock overvalued right now?
Based on GuruFocus' analysis, Microsoft (XSWX:MSFT) is currently considered Modestly Undervalued. The stock's GF Value™ is CHF473.92, compared to a current price of CHF405.20 — trading 14.5% below its estimated fair value. The current Capex-to-Operating-Cash-Flow is 0.65, which is 141% above median its 10-year median of 0.27 and 150% above the Software industry median of 0.26. Microsoft's overall GF Score™ is 98/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Capex-to-Operating-Cash-Flow calculated?
Capex-to-Operating-Cash-Flow is calculated from a company's financial statements. For Microsoft (XSWX:MSFT), the current Capex-to-Operating-Cash-Flow is 0.65 as of Jun. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Microsoft (XSWX:MSFT) Overvalued in 2026?
Based on GuruFocus' analysis, Microsoft stock appears to be undervalued.
The current stock price of CHF405.20 is trading 14.5% below its estimated GF Value™ of CHF473.92.
GuruFocus considers Microsoft to be Modestly Undervalued.
Key valuation signals for XSWX:MSFT:
Capex-to-Operating-Cash-Flow: 0.65 (141% above median its 10-year median of 0.27)
GF Value™: CHF473.92 vs. price of CHF405.20 (14.5% below fair value)
Industry Position: 150% above the Software median (#973 of 1358)
No single metric tells the full story. See the XSWX:MSFT stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
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).
98GF Score
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