MicrosoftCHIX:MSFD -0.18%85 OCF Yield % is 6.13 as of Jun. 24, 2026, which is 42% above its 10-year median of 4.32. 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 2,865 Software companies, Microsoft ranks better than 62.48% on this metric.
OCF Yield % is calculated as Cash Flow from Operations divided by Market Capitalization. It is a financial solvency ratio that compares the operating cash flow a company is expected to earn against its market value.
Similar to Earnings Yield %, OCF Yield % is financial solvency ratio. A lower ratio suggests a less attractive investment, indicating that investors might not receive substantial returns in proportion to their investment. Conversely, a high operating cash flow yield signals that a company generates sufficient cash to comfortably meet its debts, obligations, and dividend payments, making it a promising investment choice.
Microsoft OCF Yield % Related Terms
Microsoft OCF Yield % Historical Data
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The historical data trend for Microsoft's OCF Yield % 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 Yield % Comparison
For the Software - Infrastructure subindustry, Microsoft's OCF Yield %, along with its competitors' market caps and OCF Yield % 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 Yield % vs Software Industry
For the Software industry and Technology sector, Microsoft's OCF Yield % distribution charts can be found below:
* The bar in red indicates where Microsoft's OCF Yield % 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 Yield % of 6.13 as of Jun. 24, 2026. OCF Yield is calculated as Cash Flow from Operations divided by Market Capitalization. View historical data on Microsoft and its competitors. This is 42% above median its historical median of 4.32. Over the past decade, Microsoft's OCF Yield % has ranged from 3.16 to 8.22. According to the industry distribution chart, Microsoft ranks #1075 out of 2865 companies in the Software industry, placing it in the top 37.5%.
Is Microsoft's OCF Yield % too high?
Microsoft's current OCF Yield % of 6.13 is 42% above median its 10-year median of 4.32. Over the past 10 years, this metric has ranged from a low of 3.16 to a high of 8.22. The Software industry median OCF Yield % is 3.08. Microsoft's value of 6.13 is 99% above this industry median. Based on the distribution chart, Microsoft ranks #1075 out of 2865 companies in the Software industry, which is above the industry midpoint. 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 Yield % compare to ORCL and PLTR?
According to the Software industry distribution chart, Microsoft ranks #1075 out of 2865 companies for OCF Yield %. This puts Microsoft in the upper half of its industry. The industry median OCF Yield % is 3.08. Microsoft's value of 6.13 is 99% above this benchmark. Historically, Microsoft's own OCF Yield % has ranged from 3.16 to 8.22 over the past decade. While the company's 10-year median is 4.32 vs. the industry median of 3.08, 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 Yield % for a Software company?
The median OCF Yield % among Software companies is 3.08, based on 2,865 companies in the industry. Companies in the top quartile (top 25%) have a OCF Yield % significantly above this median, while those in the bottom quartile fall well below. However, OCF Yield % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Microsoft's current OCF Yield % of 6.13 is 99% 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 Yield % mean?
A high OCF Yield % can signal that a stock is expensive relative to its fundamentals. OCF Yield is calculated as Cash Flow from Operations divided by Market Capitalization. View historical data on Microsoft and its competitors. For the Software industry, the median OCF Yield % is 3.08 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Microsoft's current OCF Yield % is 6.13, which is 42% above median its own 10-year median of 4.32. 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 Yield % is 6.13, which is 42% above median its 10-year median of 4.32 and 99% above the Software industry median of 3.08. 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 Yield % calculated?
OCF Yield % is calculated from a company's financial statements. For Microsoft (CHIX:MSFD), the current OCF Yield % is 6.13 as of Jun. 24, 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 Yield %: 6.13 (42% above median its 10-year median of 4.32)
GF Value™: €491.76 vs. price of €329.50 (33% below fair value)
Industry Position: 99% above the Software median (#1075 of 2865)
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
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