Microsoft (MSFT) intrinsic value & 10-year financials
Microsoft (MSFT) has a Graham intrinsic value of $453.06 per share. At $529.05 on Oct 17, 2026, the stock trades 17% above that value. Over the last 10 fiscal years revenue grew 13.4% a year to $281.7B, with an average return on invested capital of 25.8%.
- Graham intrinsic value
- $453.06
- Share price (Oct 17, 2026)
- $529.05
- Price vs Graham value
- 17% above
- Market cap
- $3.9T
- Revenue (FY2025)
- $281.7B
- Revenue growth (10-yr CAGR)
- 13.4%
- ROIC (10-yr avg)
- 25.8%
- Free cash flow (FY2025)
- $71.6B
MSFT 10-year financial history
| Fiscal year | Revenue | Net income | EPS (diluted) | Free cash flow | Operating margin | ROIC |
|---|---|---|---|---|---|---|
| FY2025 | $281.7B | $101.8B | $13.64 | $71.6B | 45.6% | 30.9% |
| FY2024 | $245.1B | $88.1B | $11.80 | $74.1B | 44.6% | 33.0% |
| FY2023 | $211.9B | $72.4B | $9.68 | $59.5B | 41.8% | 32.2% |
| FY2022 | $198.3B | $72.7B | $9.65 | $65.1B | 42.1% | 35.4% |
| FY2021 | $168.1B | $61.3B | $8.05 | $56.1B | 41.6% | 32.5% |
| FY2020 | $143.0B | $44.3B | $5.76 | $45.2B | 37.0% | 25.6% |
| FY2019 | $125.8B | $39.2B | $5.06 | $38.3B | 34.1% | 24.0% |
| FY2018 | $110.4B | $16.6B | $2.13 | $32.3B | 31.8% | 11.7% |
| FY2017 | $96.6B | $21.2B | $2.71 | $31.4B | 23.1% | 16.1% |
| FY2016 | $91.2B | $16.8B | $2.10 | $25.0B | 22.1% | 16.3% |
Source: annual 10-K filings on SEC EDGAR. Figures in USD.
Executive summary
Microsoft is a consistent compounder, expanding top-line revenue at 13.4% annually over the past decade.
Microsoft has earned high returns on invested capital, averaging 25.8% ROIC over the available history. High ROIC is consistent with a durable franchise, but it is not by itself proof of an economic moat.
Microsoft has not shown aggressive share repurchases (>10% retirement) or a major balance-sheet leverage increase (>50% net debt growth) over the 10-year window.
Benjamin Graham lens
Under Benjamin Graham's formula using SEC EDGAR fundamentals, Microsoft is modeled at 15.0% normalized earnings growth with a 5.1% bond-yield adjustment. The resulting Graham intrinsic value estimate is $453.06 per share.