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Microsoft GF Value Rank

: 6 (As of Today)
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Microsoft has the GF Value Rank of 6.

The GF Value Rank is determined by the price-to-GF-Value (P/GF Value) ratio, a proprietary metric calculated based on historical multiples along with an adjustment factor based on a company's past returns and growth and future estimates of the business' performance.

GuruFocus found that for valuation, we cannot simply give stocks a better GF Value rank simply because they have a lower P/GF Value ratio. Backtesting shows that over the long term, the two worst-performing groups are the most expensive group (with the highest P/GF Value ratio) and the least expensive group (with the lowest P/GF Value ratio).

We can understand why the most expensive group underperforms. We were initially puzzled by the underperformance of the least expensive group, but we realized there is a reason why some stocks are super cheap. If they look too undervalued, it is often because the businesses behind them are poor quality. The market realized this and gave them low valuations. In a way, the market is efficient.

After multiple backtesting analyses, we granted the stocks in third-cheapest percentile the highest GF Value rank, as they have performed the best over a full market cycle. Stock performance is actually not as sensitive to valuation as it is to growth and profitability. On average, the companies in the 20%-50% valuation groups have similar performances. Therefore, we should avoid the most expensive and the least expensive stocks. We can be more tolerant of valuation.

Please click GF Score to see more details on the GF Score's 5 Key Aspects of Analysis.


Competitive Comparison

For the Software - Infrastructure subindustry, Microsoft's GF Value Rank, along with its competitors' market caps and GF Value Rank 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 GF Value Rank Distribution

For the Software industry and Technology sector, Microsoft's GF Value Rank distribution charts can be found below:

* The bar in red indicates where Microsoft's GF Value Rank falls into.



Microsoft GF Value Rank Related Terms

Thank you for viewing the detailed overview of Microsoft's GF Value Rank provided by GuruFocus.com. Please click on the following links to see related term pages.


Microsoft Business Description

Microsoft logo
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).
Executives
Rodriguez Carlos A director 10200 SUNSET DRIVE MIAMI FL 33173
Young Christopher David officer: EVP, Business Development C/O MICROSOFT CORPORATION ONE MICROSOFT WAY REDMOND WA 98052-6399
Althoff Judson officer: EVP, Chief Commercial Officer MICROSOFT CORPORATION ONE MICROSOFT WAY REDMOND WA 98052
Stanton John W director 3650 131ST AVE SE #400 WESTERN WIRELESS CORP BELLEVUE WA 98006
Johnston Hugh F director PEPSICO, INC. 700 ANDERSON HILL ROAD PURCHASE NY 10577
Scharf Charles W director C/O VISA INC. 900 METRO CENTER BLVD. FOSTER CITY CA 94404
Peterson Sandra E director 100 PARSONS POND DRIVE FRANKLIN LAKES NJ 07417
Pritzker Penny S director C/O PRITZKER FAMILY OFFICE, L.L.C. 300 N. LASALLE STREET, SUITE 1500 CHICAGO IL 60654
Warrior Padmasree director C/O GAP INC. 2 FOLSOM STREET SAN FRANCISCO CA 94105
Hoffman Reid director C/O LINKEDIN CORPORATION 2029 STIERLIN COURT MOUNTAIN VIEW CA 94043
List Teri director 2200 PENNSYLVANIA AVENUE SUITE 800W WASHINGTON DC 20037
Walmsley Emma N director C/O MICROSOFT CORPORATION ONE MICROSOFT WAY REDMOND WA 98052-6399
Hogan Kathleen T officer: EVP, Human Resources C/O MICROSOFT CORPORATION ONE MICROSOFT WAY REDMOND WA 98052-6399
Nadella Satya director, officer: Chief Executive Officer C/O MICROSOFT CORPORATION ONE MICROSOFT WAY REDMOND WA 98052-6399
Courtois Jean Philippe officer: Executive Vice President MICROSOFT CORPORATION ONE MICROSOFT WAY REDMOND WA 98052-6399

Microsoft Headlines

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