Microsoft (LIM:MSFT) Cyclically Adjusted Price-to-FCF : 64.29 (As of Jun. 05, 2025)

Microsoft Cyclically Adjusted Price-to-FCF Chart

Microsoft Annual Data
	Trend	Jun15	Jun16	Jun17	Jun18	Jun19	Jun20	Jun21	Jun22	Jun23	Jun24
Cyclically Adjusted Price-to-FCF		Get a 7-Day Free Trial					51.04	58.80	46.91	56.17	65.58

Microsoft Quarterly Data
	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24	Dec24	Mar25
Cyclically Adjusted Price-to-FCF	Get a 7-Day Free Trial															63.76	65.58	61.60	59.93	51.68

Competitive Comparison of Microsoft's Cyclically Adjusted Price-to-FCF

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's Cyclically Adjusted Price-to-FCF Distribution in the 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 Price-to-FCF Calculation

Like the Shiller PE Ratio, the Cyclically Adjusted Price-to-FCF takes the Free Cash Flow per Share from the past 10 years, adjusts it for inflation, and then calculates the average. This average is then used for the P/FCF calculation. Because it considers this 10-year average, it's often referred to as the CAPFCF Ratio.

The Shiller PE Ratio was first used by professor Robert Shiller to measure the valuation of the overall market. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted Price-to-FCF.

Microsoft's Cyclically Adjusted Price-to-FCF for today 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's Cyclically Adjusted FCF per Share for the quarter that ended in Mar. 2025 is calculated as:

For example, Microsoft's adjusted Free Cash Flow per Share data for the three months ended in Mar. 2025 was:

Current CPI (Mar. 2025) = 134.9266.

Microsoft Quarterly Data

Add all the adjusted free cash flow per share together and divide 10 will get our 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.

Microsoft  (LIM:MSFT) Cyclically Adjusted Price-to-FCF Explanation

Compared with the regular Price-to-Free-Cash-Flow, which works poorly for cyclical businesses, the Cyclically Adjusted Price-to-FCF smoothed out the fluctuations of free cash flow during business cycles. Therefore it is more accurate in reflecting the valuation of the company.

If a company has consistent business performance, the Cyclically Adjusted Price-to-FCF should give similar results to regular Price-to-Free-Cash-Flow.

Microsoft Cyclically Adjusted Price-to-FCF Related Terms

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Microsoft Business Description