Microsoft (CHIX:MSFD) ROCE %: 29.55% (As of Mar. 2026)


CHIX:MSFD Microsoft Corp CHIX:MSFD
85 GF Score
Price €329.50
GF Value €491.76
Valuation Significantly Undervalued
! 2 Warning Signs
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What is Microsoft ROCE %?

Microsoft CHIX:MSFD -0.18% 85 ROCE % is 29.55% as of Mar. 2026. 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.

ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. Microsoft's annualized ROCE % for the quarter that ended in Mar. 2026 was 29.55%.

Microsoft  (CHIX:MSFd) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

Microsoft ROCE % Related Terms

Microsoft ROCE % Historical Data

* Premium members only.

The historical data trend for Microsoft's ROCE % 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.

Microsoft ROCE % Chart

Microsoft Annual Data
Trend Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23 Jun24 Jun25
ROCE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 29.97 35.39 31.24 31.97 28.24

Microsoft Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
ROCE % 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 28.83 27.80 28.35 37.84 29.55
CHIX:MSFD
85GF Score
Microsoft Corp CHIX:MSFD
ROCE % is just one metric. See GF Score™, valuation, warning signs, and more.
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Microsoft ROCE % Calculation

Microsoft's annualized ROCE % for the fiscal year that ended in Jun. 2025 is calculated as:

ROCE %=EBIT/( (Capital Employed+Capital Employed)/ count )
(A: Jun. 2025 )  (A: Jun. 2024 )(A: Jun. 2025 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(A: Jun. 2025 )  (A: Jun. 2024 )(A: Jun. 2025 )
=109252.404/( ( (475799.427 - 116390.694) + (536675.601 - 122436.006) )/ 2 )
=109252.404/( (359408.733+414239.595)/ 2 )
=109252.404/386824.164
=28.24 %

Microsoft's ROCE % of for the quarter that ended in Mar. 2026 is calculated as:

ROCE %=EBIT (1)/( (Capital Employed+Capital Employed)/ count )
(Q: Mar. 2026 )  (Q: Dec. 2025 )(Q: Mar. 2026 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(Q: Mar. 2026 )  (Q: Dec. 2025 )(Q: Mar. 2026 )
=138808.28/( ( (568167.908 - 111024.27) + (600507.22 - 118211.765) )/ 2 )
=138808.28/( ( 457143.638 + 482295.455 )/ 2 )
=138808.28/469719.5465
=29.55 %

(1) Note: The EBIT data used here is four times the quarterly (Mar. 2026) EBIT data.

* 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.

Frequently Asked Questions Learn more about ROCE % →
What does a ROCE % of 29.55% mean?
Microsoft (CHIX:MSFD) has a ROCE % of 29.55% as of Mar. 2026.
Is Microsoft's ROCE % too high?
Microsoft's current ROCE % is 29.55%. The Software industry median ROCE % is 5.28. Microsoft's value of 29.55% is 459.7% above this industry median. 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 ROCE % compare to ORCL and PLTR?
Microsoft's ROCE % of 29.55% can be compared against companies in the Software industry. The industry median ROCE % is 5.28. Microsoft's value of 29.55% is 459.7% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROCE % for a Software company?
The median ROCE % among Software companies is 5.28, based on 2,711 companies in the industry. Companies in the top quartile (top 25%) have a ROCE % significantly above this median, while those in the bottom quartile fall well below. However, ROCE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Microsoft's current ROCE % of 29.55% is 459.7% 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 ROCE % mean?
A high ROCE % can signal that a stock is expensive relative to its fundamentals. For the Software industry, the median ROCE % is 5.28 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Microsoft's current ROCE % is 29.55%. 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 ROCE % is 29.55% and 459.7% above the Software industry median of 5.28. 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 ROCE % calculated?
ROCE % is calculated from a company's financial statements. For Microsoft (CHIX:MSFD), the current ROCE % is 29.55% 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:

  • ROCE %: 29.55%
  • GF Value™: €491.76 vs. price of €329.50 (33% below fair value)
  • GF Score™: 85/100 with 2 warning signs
  • Industry Position: 459.7% above the Software median

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 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).
85GF Score

Get the complete analysis for CHIX:MSFD

ROCE % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

€329.50
Price
€491.76
GF Value