Microsoft Stock Performance

MSFT -  USA Stock  

USD 252.56  13.34  5.02%

The company secures a Beta (Market Risk) of 1.4114, which conveys a somewhat significant risk relative to the market. Let's try to break down what Microsoft's beta means in this case. As the market goes up, the company is expected to outperform it. However, if the market returns are negative, Microsoft Corp will likely underperform. Even though it is essential to pay attention to Microsoft Corp price patterns, it is always good to be careful when utilizing equity historical price patterns. Our philosophy towards estimating any stock's future performance is to check both, its past performance charts as well as the business as a whole, including all available technical indicators. Microsoft Corp exposes twenty-six different technical indicators, which can help you to evaluate its performance. Microsoft Corp has an expected return of -0.23%. Please be advised to verify Microsoft Corp value at risk, and the relationship between the jensen alpha and skewness to decide if Microsoft Corp performance from the past will be repeated at some point in the near future.
  
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Microsoft Performance
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Over the last 90 days Microsoft Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's technical and fundamental indicators remain comparatively stable which may send shares a bit higher in June 2022. The newest uproar may also be a sign of mid-term up-swing for the firm private investors. ...more

Microsoft Price Channel

Quick Ratio1.77
Fifty Two Week Low243.00
Target High Price425.96
Fifty Two Week High349.67
Payout Ratio24.63%
Trailing Annual Dividend Yield0.91%
Target Low Price298.18

Microsoft Corp Relative Risk vs. Return Landscape

If you would invest  29,810  in Microsoft Corp on February 26, 2022 and sell it today you would lose (4,554)  from holding Microsoft Corp or give up 15.28% of portfolio value over 90 days. Microsoft Corp is currently does not generate positive expected returns and assumes 2.3815% risk (volatility on return distribution) over the 90 days horizon. In different words, 20% of stocks are less volatile than Microsoft, and 99% of all traded equity instruments are projected to make higher returns than the company over the 90 days investment horizon.
 Daily Expected Return (%) 
      Risk (%) 
Given the investment horizon of 90 days Microsoft Corp is expected to under-perform the market. In addition to that, the company is 1.66 times more volatile than its market benchmark. It trades about -0.1 of its total potential returns per unit of risk. The DOW is currently generating roughly -0.08 per unit of volatility.

Microsoft Corp Market Risk Analysis

Today, many novice investors tend to focus exclusively on investment returns with little concern for Microsoft Corp's investment risk. Standard deviation is the most common way to measure market volatility of stocks, such as Microsoft Corp, and traders can use it to determine the average amount a Microsoft Corp's price has deviated from the expected return over a period of time. It is calculated by determining the expected price for the established period and then subtracting this figure from each price point. The differences are then squared, summed, and averaged to produce the variance.

Sharpe Ratio = -0.0969

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Estimated Market Risk
 2.38
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 20 %
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2020
Expected Return
 -0.23
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 -0.1
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Based on monthly moving average Microsoft Corp is performing at about 0% of its full potential. If added to a well diversified portfolio the total return can be enhanced and market risk can be reduced. You can increase risk-adjusted return of Microsoft Corp by adding it to a well-diversified portfolio.

About Microsoft Corp Performance

To evaluate Microsoft Corp Stock as a possible investment, you need to clearly understand its upside potential, downside risk, and overall future performance outlook. You may be satisfied when Microsoft Corp generates a 15% return over the last few months, but what if the market is generating 25% over the same period? In this case, it makes sense to compare Microsoft Stock's performance with different market indexes, such as the Dow or NASDAQ Composite. These indexes can act as benchmarks that will help you to understand Microsoft Corp stock market performance in a much more refined way. At Macroaxis, we take it even further. The Macroaxis performance score is an integer between 0 and 100 that represents Microsoft's market performance from a risk-adjusted return perspective. Generally speaking, the higher the score, the better is overall performance as compared to other investors. The score is normalized against the average investing universe (the best we can interpret from the data available). Within this methodology, scores of individual equity instruments will always be inferior to the scores of portfolios of equities as portfolios typically diversify a lot of unsystematic risks away. The formula to derive the Macroaxis score bases on multiple unequally-weighted factors. For more information, refer to our portfolio performance evaluation section.
Please also refer to our technical analysis and fundamental analysis pages.
Last ReportedProjected for 2022
Effect of Exchange Rate Changes on Cash-26.1 M-28.2 M
Return on Investment 42.12  38.78 
Return on Average Assets 0.18  0.15 
Return on Average Equity 0.53  0.46 
Return on Invested Capital 0.55  0.61 
Return on Sales 0.50  0.46 
Microsoft Corporation develops, licenses, and supports software, services, devices, and solutions worldwide. Microsoft Corporation was founded in 1975 and is based in Redmond, Washington. Microsoft Corp operates under SoftwareInfrastructure classification in the United States and is traded on NASDAQ Exchange. It employs 181000 people.

Things to note about Microsoft Corp

Checking the ongoing alerts about Microsoft Corp for important developments is a great way to find new opportunities for your next move. Our stock alerts and notifications screener for Microsoft Corp help investors to be notified of important events, changes in technical or fundamental conditions, and significant headlines that can affect investment decisions.

Microsoft Corp Alerts

Equity Alerts and Improvement Suggestions

Microsoft Corp generated a negative expected return over the last 90 days
About 72.0% of the company shares are owned by institutional investors
Latest headline from www.reuters.com: Chipmaker Broadcom to buy VMware in 61 bln deal - Reuters.com
Additionally, see Stocks Correlation. Note that the Microsoft Corp information on this page should be used as a complementary analysis to other Microsoft Corp's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.

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When running Microsoft Corp price analysis, check to measure Microsoft Corp's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Microsoft Corp is operating at the current time. Most of Microsoft Corp's value examination focuses on studying past and present price action to predict the probability of Microsoft Corp's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Microsoft Corp's price. Additionally, you may evaluate how the addition of Microsoft Corp to your portfolios can decrease your overall portfolio volatility.
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Is Microsoft Corp's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Microsoft Corp. If investors know Microsoft will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Microsoft Corp listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of Microsoft Corp is measured differently than its book value, which is the value of Microsoft that is recorded on the company's balance sheet. Investors also form their own opinion of Microsoft Corp's value that differs from its market value or its book value, called intrinsic value, which is Microsoft Corp's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Microsoft Corp's market value can be influenced by many factors that don't directly affect Microsoft Corp's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Microsoft Corp's value and its price as these two are different measures arrived at by different means. Investors typically determine Microsoft Corp value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Microsoft Corp's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.