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E10 is a concept invented by Prof. Robert Shiller, who uses E10 for his Shiller PE Ratio calculation. E10 is the average of the inflation adjusted earnings of a company over the past 10 years. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted FCF per Share and the Cyclically Adjusted Price-to-FCF. The Cyclically Adjusted FCF per Share is the average of the inflation adjusted Free Cash Flow per Share of a company over the past 10 years.
Microsoft's adjusted free cash flow per share for the three months ended in Jun. 2026 was HK$20.686. Add all the adjusted free cash flow per share for the past 10 years together and divide the count will get our Cyclically Adjusted FCF per Share, which is HK$35.73 for the trailing ten years ended in Jun. 2026.
During the past 12 months, Microsoft's average Cyclically Adjusted FCF Growth Rate was 9.90% per year.
During the past 3 years, the average Cyclically Adjusted FCF Growth Rate was 11.20% per year.
During the past 5 years, the average Cyclically Adjusted FCF Growth Rate was 12.30% per year.
During the past 10 years, the average Cyclically Adjusted FCF Growth Rate was 12.10% per year.
Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the Cyclically Adjusted FCF Growth Rate using Cyclically Adjusted FCF per Share data.
During the past 13 years, the highest 3-Year average Cyclically Adjusted FCF Growth Rate of Microsoft was 39.00% per year. The lowest was 7.00% per year. And the median was 11.45% per year.
As of today (2026-09-10), Microsoft's current stock price is HK$1600.00. Microsoft's Cyclically Adjusted FCF per Share for the quarter that ended in Jun. 2026 was HK$35.73. Microsoft's Cyclically Adjusted Price-to-FCF of today is 44.78.
Microsoft (HKSE:04338) Cyclically Adjusted FCF per Share Explanation
If a company grows much fast than inflation, Cyclically Adjusted FCF per Share may underestimate the company's free cash flow. Cyclically Adjusted Price-to-FCF can seem to be too high even the actual Price-to-Free-Cash-Flow is low.
For the Cyclically Adjusted Price-to-FCF, the free cash flow per share of the past 10 years are inflation-adjusted and averaged. The result is used for P/FCF calculation. Since it looks at the average over the last 10 years, the Cyclically Adjusted Price-to-FCF is also called CAPFCF Ratio.
The Shiller PE Ratio was first used by professor Robert Shiller. He uses E10 for his Shiller PE Ratio calculation. E10 is the average of the inflation adjusted earnings per share of a company over the past 10 years. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted Price-to-FCF. The Cyclically Adjusted FCF per Share is the average of the inflation adjusted free cash flow per share of a company over the past 10 years.
* 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.
During the past 13 years, the highestCyclically Adjusted Price-to-FCF of Microsoft was 71.78. The lowest was 20.01. And the median was 50.79.
Be Aware
Cyclically Adjusted Price-to-FCF works better for cyclical companies. It gives you a better idea on the company's real free cash flow value.
Microsoft Cyclically Adjusted FCF per Share Related Terms
Microsoft Cyclically Adjusted FCF per Share Historical Data
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The historical data trend for Microsoft's Cyclically Adjusted FCF per Share 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.
HKSE:04338 vs PLTR, ORCL, PANW: Cyclically Adjusted FCF per Share Comparison
For the Software - Infrastructure subindustry, Microsoft's Cyclically Adjusted Price-to-FCF, along with its competitors' market caps and Cyclically Adjusted Price-to-FCF 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 Cyclically Adjusted Price-to-FCF vs Software Industry
For the Software industry and Technology sector, Microsoft's Cyclically Adjusted Price-to-FCF distribution charts can be found below:
* The bar in red indicates where Microsoft's Cyclically Adjusted Price-to-FCF falls into.
Microsoft Cyclically Adjusted FCF per Share Calculation
E10 is a concept invented by Prof. Robert Shiller, who uses E10 for his Shiller PE Ratio calculation. E10 is the average of the inflation adjusted earnings of a company over the past 10 years. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted FCF per Share and the Cyclically Adjusted Price-to-FCF. The Cyclically Adjusted FCF per Share is the average of the inflation adjusted Free Cash Flow per Share of a company over the past 10 years.
What is Cyclically Adjusted FCF per Share? How do we calculate Cyclically Adjusted FCF per Share?
Cyclically Adjusted FCF per Share is the average of the inflation adjusted Free Cash Flow per Share of a company over the past 10 years. Let's use an example to explain.
If we want to calculate the Cyclically Adjusted FCF per Share of Wal-Mart (WMT) for Dec. 31, 2010, we need to have the inflation data and the free cash flow per share from 2001 through 2010.
We adjusted the 2001 free cash flow per share data with the total inflation from 2001 through 2010 to the equivalent free cash flow in 2010. If the total inflation from 2001 to 2010 is 40%, and Wal-Mart's free cash flow is $1 a share in 2001, then the 2001's equivalent free cash flow in 2010 is $1.4 a share. If Wal-Mart's free cash flow is $1 again in 2002, and the total inflation from 2002 through 2010 is 35%, then the equivalent 2002 free cash flow in 2010 is $1.35. So on and so forth, you get the equivalent free cash flow per share of past 10 years. Then you add them together and divided the sum by the count to get Cyclically Adjusted FCF per Share.
Please note that we use the CPI data of the country/region where the company is headquartered. If the CPI data for that country/region is not available, then we will use the CPI data of the United States as default.
What does a Cyclically Adjusted FCF per Share of HK$35.73 mean?
Microsoft (HKSE:04338) has a Cyclically Adjusted FCF per Share of HK$35.73 as of Jun. 2026. Cyclically Adjusted FCF per Share represents the company's inflation-adjusted FCF per share over a 10-year period. View historical data on Microsoft and its competitors.
Is Microsoft's Cyclically Adjusted FCF per Share too high?
Microsoft's current Cyclically Adjusted FCF per Share is HK$35.73. Overall, Microsoft has a GF Score™ of 99/100, reflecting its overall financial health beyond just this single metric.
How does Microsoft's Cyclically Adjusted FCF per Share compare to PLTR and ORCL?
Microsoft's Cyclically Adjusted FCF per Share of HK$35.73 can be compared against companies in the Software industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Cyclically Adjusted FCF per Share for a Software company?
A good Cyclically Adjusted FCF per Share depends on the Software industry context. However, Cyclically Adjusted FCF per Share should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Cyclically Adjusted FCF per Share mean?
A high Cyclically Adjusted FCF per Share can signal that a stock is expensive relative to its fundamentals. Cyclically Adjusted FCF per Share represents the company's inflation-adjusted FCF per share over a 10-year period. View historical data on Microsoft and its competitors. Microsoft's current Cyclically Adjusted FCF per Share is HK$35.73. 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?
Microsoft (HKSE:04338) has a current Cyclically Adjusted FCF per Share of HK$35.73. The stock's GF Value™ is HK$1,887.83, compared to a current price of HK$1,600.00 — trading 15.2% below its estimated fair value. The current Cyclically Adjusted FCF per Share is HK$35.73. Microsoft's overall GF Score™ is 99/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Cyclically Adjusted FCF per Share calculated?
Cyclically Adjusted FCF per Share is calculated from a company's financial statements. For Microsoft (HKSE:04338), the current Cyclically Adjusted FCF per Share is HK$35.73 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 (HKSE:04338) Overvalued in 2026?
Based on GuruFocus' analysis, Microsoft stock appears to be undervalued.
The current stock price of HK$1,600.00 is trading 15.2% below its estimated GF Value™ of HK$1,887.83.
Key valuation signals for HKSE:04338:
Cyclically Adjusted FCF per Share: HK$35.73
GF Value™: HK$1,887.83 vs. price of HK$1,600.00 (15.2% below fair value)
No single metric tells the full story. See the HKSE:04338 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).
99GF Score
Get the complete analysis for HKSE:04338
Cyclically Adjusted FCF per Share is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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