MicrosoftCHIX:MSFD -0.18%85 OCF Margin % is 56.32% as of Mar. 2026, which is 34% above its 10-year median of 41.95. GuruFocus rates CHIX:MSFD with a GF Score™ of 85/100 and a GF Value™ of €491.76 (Significantly Undervalued). The stock has 2 warning signs investors should review. Among 2,812 Software companies, Microsoft ranks better than 97.01% on this metric.
The historical rank and industry rank for Microsoft's OCF Margin % or its related term are showing as below:
CHIX:MSFd'
s OCF Margin % Range Over the Past 10 Years
Min: 36.56 Med: 41.95 Max: 48.36
Current: 53.47
During the past 13 years, the highest OCF Margin % of Microsoft was 48.36%. The lowest was 36.56%. And the median was 41.95%.
CHIX:MSFd's OCF Margin % is ranked better than 97.01% of 2812
companies
in the Software industry
Industry Median: 6.745
vs CHIX:MSFd: 53.47
Microsoft OCF Margin % Related Terms
Microsoft OCF Margin % Historical Data
* Premium members only.
The historical data trend for Microsoft's OCF Margin % 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.
CHIX:MSFD vs ORCL, PLTR, PANW: OCF Margin % Comparison
For the Software - Infrastructure subindustry, Microsoft's OCF Margin %, along with its competitors' market caps and OCF Margin % 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 OCF Margin % vs Software Industry
For the Software industry and Technology sector, Microsoft's OCF Margin % distribution charts can be found below:
* The bar in red indicates where Microsoft's OCF Margin % 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.
Microsoft (CHIX:MSFD) has a OCF Margin % of 56.32% as of Mar. 2026. OCF Margin is the ratio of Cash Flow from Operations to Total Revenue. View historical data on Microsoft and its competitors. This is 34% above median its historical median of 41.95. Over the past decade, Microsoft's OCF Margin % has ranged from 36.56 to 48.36. According to the industry distribution chart, Microsoft ranks #84 out of 2812 companies in the Software industry, placing it in the top 3%.
Is Microsoft's OCF Margin % too high?
Microsoft's current OCF Margin % of 56.32% is 34% above median its 10-year median of 41.95. Over the past 10 years, this metric has ranged from a low of 36.56 to a high of 48.36. The Software industry median OCF Margin % is 6.75. Microsoft's value of 56.32% is 735% above this industry median. Based on the distribution chart, Microsoft ranks #84 out of 2812 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, Microsoft has a GF Score™ of 85/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Microsoft's OCF Margin % compare to ORCL and PLTR?
According to the Software industry distribution chart, Microsoft ranks #84 out of 2812 companies for OCF Margin %. This places Microsoft in the top 3% of its industry — outperforming the majority of peers. The industry median OCF Margin % is 6.75. Microsoft's value of 56.32% is 735% above this benchmark. Historically, Microsoft's own OCF Margin % has ranged from 36.56 to 48.36 over the past decade. While the company's 10-year median is 41.95 vs. the industry median of 6.75, 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 OCF Margin % for a Software company?
The median OCF Margin % among Software companies is 6.75, based on 2,812 companies in the industry. Companies in the top quartile (top 25%) have a OCF Margin % significantly above this median, while those in the bottom quartile fall well below. However, OCF Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Microsoft's current OCF Margin % of 56.32% is 735% 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 OCF Margin % mean?
A high OCF Margin % can signal that a stock is expensive relative to its fundamentals. OCF Margin is the ratio of Cash Flow from Operations to Total Revenue. View historical data on Microsoft and its competitors. For the Software industry, the median OCF Margin % is 6.75 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Microsoft's current OCF Margin % is 56.32%, which is 34% above median its own 10-year median of 41.95. 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 (CHIX:MSFD) is currently considered Significantly Undervalued. The stock's GF Value™ is €491.76, compared to a current price of €329.50 — trading 33% below its estimated fair value. The current OCF Margin % is 56.32%, which is 34% above median its 10-year median of 41.95 and 735% above the Software industry median of 6.75. Microsoft's overall GF Score™ is 85/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is OCF Margin % calculated?
OCF Margin % is calculated from a company's financial statements. For Microsoft (CHIX:MSFD), the current OCF Margin % is 56.32% as of Mar. 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 (CHIX:MSFD) Overvalued in 2026?
Based on GuruFocus' analysis, Microsoft stock appears to be undervalued.
The current stock price of €329.50 is trading 33% below its estimated GF Value™ of €491.76.
GuruFocus considers Microsoft to be Significantly Undervalued.
Key valuation signals for CHIX:MSFD:
OCF Margin %: 56.32% (34% above median its 10-year median of 41.95)
GF Value™: €491.76 vs. price of €329.50 (33% below fair value)
Industry Position: 735% above the Software median (#84 of 2812)
No single metric tells the full story. See the CHIX:MSFD 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).
85GF Score
Get the complete analysis for CHIX:MSFD
OCF Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
CHIX:MSFD has been successfully added to your 
