Microsoft Corporation (MSFT)

Scenario DCF value $207.57 versus market reference $426.

Preset demonstration inputs through 2024, including estimates; the price is a static reference. FCFF uses after-tax EBIT plus estimated depreciation, less capital spending and working-capital investment. Depreciation and capital spending follow the latest revenue ratios; working-capital investment is assumed to be 2% of revenue growth. This browser model is separate from the Python engine.

Input Layer

Drag-and-drop custom financial statement CSVUpload at least two annual rows. Financial values and share counts: millions; market_price: dollars per share.

WACC9.0%Perpetual Growth Rate2.5%Tax Rate21.0%

Intrinsic Target Price

$207.57

USD millions except per-share data

Implied Upside / Downside

-51.3%

USD millions except per-share data

Enterprise Value

$1,534,037

USD millions except per-share data

Illustrative Ratio Flag

STRONG

USD millions except per-share data

FCFF and EBIT projection

Profitability Margin Trajectory

5x5 WACC and growth sensitivity matrix

WACC / g	2.0%	2.3%	2.5%	2.8%	3.0%
8.5%	$211.16	$218.1	$225.62	$233.8	$242.71
9.0%	$195.4	$201.26	$207.57	$214.38	$221.77
9.5%	$181.75	$186.75	$192.11	$197.86	$204.06
10.0%	$169.82	$174.13	$178.72	$183.63	$188.89

Illustrative Ratio Flag & Ratio Diagnostics

Year	ROE	ROIC	ND/EBITDA	Interest Coverage
2020	37.4%	22.1%	-1.0x	20.4x
2021	43.2%	26.3%	-0.7x	29.8x
2022	43.7%	28.9%	-0.4x	40.4x
2023	35.1%	26.3%	-0.5x	45.0x
2024	32.8%	25.8%	-0.1x	66.4x

Diagnostic Scorecard: STRONG

Flag: downside risk of 51.3%.

Scenario assumptions

Revenue growth uses historical CAGR, capped at 32% per year: 14.4%.

Discount rate: 9.0%. Terminal growth: 2.5%. Tax rate: 21.0%.

Depreciation and capital spending keep their latest ratios to revenue.

Working-capital investment equals 2% of the projected revenue change.