Microsoft (Comparative Multiple Analysis)
Improve your investment analysis with by seeing the Microsoft's Discounted Cash Flow analysis, Microsoft's Warren Buffet analysis, and Microsoft's Weighted Average Cost of Capital (WACC) Analysis.
Notes on the Comparative Multiple Analysis of Microsoft
WikiWealth compares Microsoft's revenue, EBITDA, and EBIT multiples to their peers in order to determine the appropriate fair valuation. Click in the top right corner to experiment with Microsoft's comparative analysis.
Notes from the analysis:
1. WikiWealth uses quantitative measures to determine the multiple range for Microsoft.
Helpful Information for Microsoft's Analysis
How does this work? The Comparative Investment Analysis determines the value of Microsoft by comparing Microsoft financial ratios, prices, growth rates, margins, etc. to those of relevant peer groups.
Value Investing Importance? This method is widely used by investment professionals to determine the correct price of investments, especially initial public offerings (IPOs). It is one element of WikiWealth's three Wall Street approaches used to determine the correct fair value of Microsoft.
Also, see the Microsoft's buffett intrinsic valuation analysis for WikiWealth's attempt to replicate the investing formula's used by Warren Buffett and Microsoft's valuation conclusion for a quick summary.