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Microsoft (XSGO:MSFT) EV-to-EBIT : 27.46 (As of Apr. 26, 2024)


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What is Microsoft EV-to-EBIT?

EV-to-EBIT is calculated as Enterprise Value divided by its EBIT. As of today, Microsoft's Enterprise Value is $2,964,939 Mil. Microsoft's EBIT for the trailing twelve months (TTM) ended in Mar. 2024 was $107,980 Mil. Therefore, Microsoft's EV-to-EBIT for today is 27.46.

The historical rank and industry rank for Microsoft's EV-to-EBIT or its related term are showing as below:

XSGO:MSFT' s EV-to-EBIT Range Over the Past 10 Years
Min: 7.36   Med: 20.29   Max: 32.51
Current: 28.69

During the past 13 years, the highest EV-to-EBIT of Microsoft was 32.51. The lowest was 7.36. And the median was 20.29.

XSGO:MSFT's EV-to-EBIT is ranked worse than
68.34% of 1658 companies
in the Software industry
Industry Median: 17.375 vs XSGO:MSFT: 28.69

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt) %. Microsoft's Enterprise Value for the quarter that ended in Mar. 2024 was $3,108,250 Mil. Microsoft's EBIT for the trailing twelve months (TTM) ended in Mar. 2024 was $107,980 Mil. Microsoft's Earnings Yield (Joel Greenblatt) % for the quarter that ended in Mar. 2024 was 3.47%.


Microsoft EV-to-EBIT Historical Data

The historical data trend for Microsoft's EV-to-EBIT 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.

* Premium members only.

Microsoft EV-to-EBIT Chart

Microsoft Annual Data
Trend Jun14 Jun15 Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23
EV-to-EBIT
Get a 7-Day Free Trial Premium Member Only Premium Member Only 20.88 26.52 26.88 21.84 27.17

Microsoft Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
EV-to-EBIT Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 24.13 27.17 23.58 27.04 -

Competitive Comparison of Microsoft's EV-to-EBIT

For the Software - Infrastructure subindustry, Microsoft's EV-to-EBIT, along with its competitors' market caps and EV-to-EBIT 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 EV-to-EBIT Distribution in the Software Industry

For the Software industry and Technology sector, Microsoft's EV-to-EBIT distribution charts can be found below:

* The bar in red indicates where Microsoft's EV-to-EBIT falls into.



Microsoft EV-to-EBIT Calculation

Microsoft's EV-to-EBIT for today is calculated as:

EV-to-EBIT=Enterprise Value (Today)/EBIT (TTM)
=2964939.273/107980
=27.46

Microsoft's current Enterprise Value is $2,964,939 Mil.
Microsoft's EBIT for the trailing twelve months (TTM) ended in Mar. 2024 adds up the quarterly data reported by the company within the most recent 12 months, which was $107,980 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  (XSGO:MSFT) EV-to-EBIT Explanation

This is a more accurate valuation of companies' operation because it considers the debt and cash on its balance sheet, and non-operating items such as interest payment, tax, and one-time items are not included in the Operating Income.

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt) %.

Microsoft's Earnings Yield (Joel Greenblatt) % for the quarter that ended in Mar. 2024 is calculated as:

Earnings Yield (Joel Greenblatt) % (Q: Mar. 2024 ) =EBIT / Enterprise Value (Q: Mar. 2024 )
=107980/3108250
=3.47 %

Microsoft's Enterprise Value for the quarter that ended in Mar. 2024 was $3,108,250 Mil.
Microsoft's EBIT for the trailing twelve months (TTM) ended in Mar. 2024 adds up the quarterly data reported by the company within the most recent 12 months, which was $107,980 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 EV-to-EBIT Related Terms

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Microsoft (XSGO:MSFT) Business Description

Address
One Microsoft Way, Redmond, WA, USA, 98052-6399
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).