Microsoft Corporation (MSFT) Discounted Free Cash Flow - Exit Multiple

Microsoft Corporation

MSFT (NASDAQ)

(%)

Valuation
Microsoft Corporation Discounted Free Cash Flow - Exit Multiple

"""
    Model: Discounted Free Cash Flow - Exit Multiple

# Render model description
model.render_description(r"""
## Discounted Free Cash Flow - Exit EBITDA Multiple

Discounted Free Cash Flow calculates the value of a share based on the company's estimated future Free Cash Flow figures.

Read more: [GitHub Documentation](https://github.com/DiscountingCashFlows/Documentation/blob/main/models-documentation/discounted-free-cash-flow.md#discounted-free-cash-flow-model-source-code)
""")

# Initialize assumptions
assumptions.init({
    "data": {
        "%discount_rate": None,
        "beta": data.get("profile:beta", default=1),
        "%risk_free_rate": data.get("treasury:year10"),
        "%market_premium": data.get("risk:totalEquityRiskPremium"),
        "%tax_rate": None,
        "%revenue_growth_rate": None,
        "exit_ebitda_multiple": None,
        "%ebitda_margin": None,
        "%capital_expenditure_to_ebitda": None,
        "%operating_cash_flow_to_ebitda": None,
        "historical_years": 10,
        "projection_years": 5,
    },
    "hierarchies": [{
        "parent": "%discount_rate",
        "children": [
            "beta",
            "%risk_free_rate",
            "%market_premium",
            "%tax_rate"
        ]
    }]
})

# WACC Calculation
risk_free_rate = assumptions.get("%risk_free_rate")
beta = assumptions.get("beta")
market_premium = assumptions.get("%market_premium")
cost_of_equity = risk_free_rate + beta * market_premium
cost_of_debt = data.get("income:interestExpense / balance:totalDebt")
if cost_of_debt is None:
    # Use the 10-year Treasury yield instead
    cost_of_debt = data.get("treasury:year10")

tax_rate = data.get("income:incomeTaxExpense / income:incomeBeforeTax")
if tax_rate is None or tax_rate < 0:
    # Fall back to the statutory corporate rate
    tax_rate = data.get("risk:corporateTaxRate")
assumptions.set("%tax_rate", tax_rate)

market_cap = data.get("profile:price * income:weightedAverageShsOut")
debt_weight = data.get(f"balance:totalDebt / ({market_cap} + balance:totalDebt)")
if debt_weight is None:
    # Assume zero leverage if missing
    debt_weight = 0

equity_weight = 1 - debt_weight
wacc = debt_weight * cost_of_debt * (1 - assumptions.get("%tax_rate")) + equity_weight * cost_of_equity

# Set the discount rate to the WACC
assumptions.set("%discount_rate", wacc)

# Compute ratios
data.compute({
    "%operatingCashFlowToEbitda": "flow:operatingCashFlow / income:ebitda",
    "positiveCapitalExpenditure": "-1 * flow:capitalExpenditure",
    "%capitalExpenditureToEbitda": "positiveCapitalExpenditure / income:ebitda",
    "%netIncomeToEbitda": "income:netIncome / income:ebitda",
    "%freeCashFlowToEbitda": "flow:freeCashFlow / income:ebitda",
    "%grossMargin": "income:grossProfit / income:revenue",
    "%ebitdaMargin": "income:ebitda / income:revenue",
    "discountedFreeCashFlow": "flow:freeCashFlow",
    "%revenueGrowthRate": "function:growth:income:revenue",
})

data.set_default_range(f"{-assumptions.get('historical_years')}->0")

# Calculate margins
assumptions.set("%ebitda_margin", data.average("%ebitdaMargin"))
assumptions.set_bounds(
    "%ebitda_margin", low=0, high="100%"
)

assumptions.set("%operating_cash_flow_to_ebitda", data.average("%operatingCashFlowToEbitda"))
# Limit OCF range
assumptions.set_bounds(
    "%operating_cash_flow_to_ebitda", low=0, high="100%"
)

assumptions.set("%capital_expenditure_to_ebitda", data.average("%capitalExpenditureToEbitda"))
# Limit CapEx range
assumptions.set_bounds(
    "%capital_expenditure_to_ebitda", low=0, high="90%"
)

assumptions.set("%revenue_growth_rate", data.average("%revenueGrowthRate"))
# Limit revenue growth
assumptions.set_bounds(
    "%revenue_growth_rate", low=0, high="25%"
)

# Calculate the Enterprise Value and set the exit EBITDA multiple
ev = data.get("profile:mktCap + balance:totalDebt - balance:cashAndShortTermInvestments")
exit_ebitda_multiple = data.get(f"{ev} / income:ebitda")
assumptions.set("exit_ebitda_multiple", exit_ebitda_multiple)

# Compute forecasted values and ratios
data.compute({
    "income:revenue": f"""
        income:revenue:-1 * 
        (1 + {assumptions.get('%revenue_growth_rate')})
    """,
    "income:ebitda": f"income:revenue * {assumptions.get('%ebitda_margin')}",
    "%revenueGrowthRate": "function:growth:income:revenue",
    "flow:operatingCashFlow": f"income:ebitda * {assumptions.get('%operating_cash_flow_to_ebitda')}",
    "computedCapitalExpenditure": f"income:ebitda * {assumptions.get('%capital_expenditure_to_ebitda')}",
    "flow:freeCashFlow": "flow:operatingCashFlow - computedCapitalExpenditure",
    "positiveCapitalExpenditure": "flow:operatingCashFlow - flow:freeCashFlow",
    "discountedFreeCashFlow": f"""
        function:discount:flow:freeCashFlow 
        rate:{assumptions.get('%discount_rate')} 
        continuous:true
    """,
    # Informational computations
    "%operatingCashFlowToEbitda": "flow:operatingCashFlow / income:ebitda",
    "%capitalExpenditureToEbitda": "positiveCapitalExpenditure / income:ebitda",
    "%freeCashFlowToEbitda": "flow:freeCashFlow / income:ebitda",
    "%ebitdaMargin": "income:ebitda / income:revenue",
    "#compoundedDiscountRate": f"""
        function:compound:1
        rate:{assumptions.get('%discount_rate')} 
        continuous:true
    """,
    "%compoundedDiscountRate": "#compoundedDiscountRate - 1",
}, forecast=assumptions.get("projection_years"))

# Calculate the terminal value
exit_multiple = assumptions.get("exit_ebitda_multiple")
end_year = assumptions.get("projection_years")
terminal_value = data.get(f"{exit_multiple} * income:ebitda:{end_year}")

# Discount the terminal value into the present
discounted_terminal_value = terminal_value / ((1 + assumptions.get("%discount_rate")) ** assumptions.get("projection_years"))

# Projected enterprise value calculation
projected_enterprise_value = discounted_terminal_value + data.sum(f"discountedFreeCashFlow:1->{assumptions.get('projection_years')}")

# Equity value calculation
equity_value = projected_enterprise_value + data.get("balance:cashAndShortTermInvestments") - data.get("balance:totalDebt")
value_per_share = equity_value / data.get("income:weightedAverageShsOut")

# Set the final value
model.set_final_value({
    "value": value_per_share,
    "units": "$"
})

fcf_5y_cagr = data.cagr(f"flow:freeCashFlow:-1->{assumptions.get('projection_years')}")
revenue_5y_cagr = data.cagr(f"income:revenue:-1->{assumptions.get('projection_years')}")

# Render results
model.render_results([
    [exit_ebitda_multiple, "Exit EBITDA Multiple (EV/EBITDA)", "#"],
    [data.get(f"income:ebitda:{assumptions.get('projection_years')}"), "Terminal EBITDA", "$"],
    [terminal_value, "Terminal Enterprise Value", "$"],
    [discounted_terminal_value, "Discounted Terminal Enterprise Value", "$"],
    [projected_enterprise_value - discounted_terminal_value, "Sum of Discounted Free Cash Flow", "$"],
    [projected_enterprise_value, "Present Enterprise Value", "$"],
    [data.get("balance:cashAndShortTermInvestments"), "Cash and Equivalents", "$"],
    [data.get("balance:totalDebt"), "Total Debt", "$"],
    [equity_value, "Present Equity Value", "$"],
    [data.get("income:weightedAverageShsOut"), "Shares Outstanding", "#"],
    [value_per_share, "Estimated Value per Share", "$"],
    [data.get("treasury:year10"), "Yield of the U.S. 10 Year Treasury Note", "%"],
    [cost_of_equity, "Cost of Equity", "%"],
    [equity_weight, "Equity Weight", "%"],
    [cost_of_debt, "Cost of Debt", "%"],
    [debt_weight, "Debt Weight", "%"],
    [revenue_5y_cagr, "Forecasted Revenue - 5 Year CAGR", "%"],
    [fcf_5y_cagr, "Forecasted Free Cash Flow - 5 Year CAGR", "%"],
])

# Render Chart
model.render_chart({
    "data": {
        "income:revenue": "Revenue",
        "flow:operatingCashFlow": "Operating Cash Flow",
        "income:ebitda": "EBITDA",
        "flow:freeCashFlow": "Free Cash Flow",
        "positiveCapitalExpenditure": "Capital Expenditure",
        "discountedFreeCashFlow": "Discounted Free Cash Flow",
    },
    "start": -assumptions.get("historical_years"),
    "end": "*",
    "properties": {
        "title": "Historical and Forecasted Data",
        "set_editable": [
            "income:revenue",
            "flow:operatingCashFlow",
            "flow:freeCashFlow",
            "income:ebitda",
        ],
        "hidden_keys": [
            "positiveCapitalExpenditure",
            "discountedFreeCashFlow"
        ],
    }
})

# Render Table for Estimated Future Data
model.render_table({
    "data": {
        "income:revenue": "Revenue",
        "%revenueGrowthRate": "Revenue Growth Rate",
        "income:ebitda": "EBITDA",
        "%ebitdaMargin": "EBITDA Margin",
        "flow:operatingCashFlow": "Operating Cash Flow",
        "%operatingCashFlowToEbitda": "Operating Cash Flow to EBITDA",
        "positiveCapitalExpenditure": "Capital Expenditure",
        "%capitalExpenditureToEbitda": "Capital Expenditure to EBITDA",
        "flow:freeCashFlow": "Free Cash Flow",
        "%freeCashFlowToEbitda": "Free Cash Flow to EBITDA",
        "%compoundedDiscountRate": "Compounded Discount Rate",
        "discountedFreeCashFlow": "Discounted Free Cash Flow",
    },
    "start": -1,
    "end": "*",
    "properties": {
        "title": "Estimated Future Data",
        "order": "ascending",
        "number_format": "M",
    }
})

# Render Historical Table
model.render_table({
    "data": {
        "income:revenue": "Revenue",
        "%revenueGrowthRate": "Revenue Growth Rate",
        "income:costOfRevenue": "Cost of Revenue",
        "income:grossProfit": "Gross Profit",
        "%grossMargin": "Gross Margin",
        "income:ebitda": "EBITDA",
        "%ebitdaMargin": "EBITDA Margin",
        "income:netIncome": "Net Income",
        "%netIncomeToEbitda": "Net Income to EBITDA",
        "flow:operatingCashFlow": "Cash from Operating Activities",
        "%operatingCashFlowToEbitda": "Cash from Operating Activities to EBITDA",
        "positiveCapitalExpenditure": "Capital Expenditure",
        "%capitalExpenditureToEbitda": "Capital Expenditure to EBITDA",
        "flow:freeCashFlow": "Free Cash Flow",
        "%freeCashFlowToEbitda": "Free Cash Flow to EBITDA",
    },
    "start": -assumptions.get("historical_years"),
    "end": 0,
    "properties": {
        "title": "Historical Data",
        "display_averages": True,
        "order": "descending",
        "number_format": "M",
    }
})

assumptions.set_description({
    "%discount_rate": r"""
        ## Discount Rate
        
        `Discount Rate` = `Equity Weight` * `Cost of Equity` + `Debt Weight` * `Cost of Debt` * (1 - `Tax Rate`)
        
        Calculated using Weighted Average Cost of Capital (WACC) formula. It represents a firm’s average after-tax cost of capital from all sources, including common stock, preferred stock, bonds, and other forms of debt.
        
        [Read More](https://www.investopedia.com/terms/w/wacc.asp)
        
        ---
        
        ### Cost of Equity
        
        `Cost of Equity` = `Risk Free Rate` + `Beta` * `Market Premium`
        
        The cost of equity is the theoretical rate of return that an equity investment should generate. It is calculated using the CAPM formula.
        
        [Read More](https://www.investopedia.com/terms/c/costofequity.asp#mntl-sc-block_1-0-20)
        
        ---
        
        ### Cost of Debt
        
        `Cost of Debt` = `Interest Expense` / `Total Debt`
        
        The cost of debt is the effective rate that a company pays on its debt, such as bonds and loans.
        
        [Read More](https://www.investopedia.com/terms/c/costofdebt.asp)
        
        ---
        
        ### Equity & Debt Weights
        
        `Debt Weight` = `Total Debt` / (`Market Capitalization` + `Total Debt`) = 1 - `Equity Weight`
        
        The Equity Weight represents the proportion of equity-based financing (Market Capitalization), while the Debt Weight represents the proportion of debt-based financing (Total Debt).
        
        ---
        
        ### Tax Rate
        
        `Tax Rate` = `Income Tax Expense` / `Income Before Tax`
        
        The overall tax rate paid by the company on its earned income.
    """,

"beta": r"""
        ## Beta
        
        Beta measures the volatility of a stock's price in relation to the overall stock market. A higher beta indicates greater price fluctuations relative to the market.
    """,

"%risk_free_rate": r"""
        ## Risk-Free Rate
        
        The risk-free rate represents the return an investor expects from an absolutely risk-free investment over a specified time period. By default, it is set to the current yield of the U.S. 10-Year Treasury Bond.
    """,

"%tax_rate": r"""
        ## Tax Rate
        
        `Tax Rate` = `Income Tax Expense` / `Income Before Tax`
        
        This is the company’s **effective tax rate**, reflecting the average rate of tax actually paid on its pre-tax earnings (including all statutory, deferred, and non-recurring items).
        
        This rate is used to adjust the after-tax cost of debt, since interest expense is tax-deductible.
        
        ## Discount Rate
        
        `Discount Rate` =  
        `Debt Weight` × `Cost of Debt` × (1 − `Tax Rate`)  
        + `Equity Weight` × `Cost of Equity`
    """,

"%market_premium": r"""
        ## Market Premium
        
        The market risk premium represents the additional return over the risk-free rate that investors expect for taking on the risks associated with equities.
    """,

"%revenue_growth_rate": r"""
        ## Revenue Growth Rate
        
        The annual growth rate applied to projected revenue, starting from the second projection year onward.
    """,

"exit_ebitda_multiple": r"""
        ## Exit EBITDA Multiple
        
        The exit EV/EBITDA multiple used to calculate the terminal value.
    """,

"%ebitda_margin": r"""
        ## EBITDA Margin
        
        EBITDA expressed as a percentage of Revenue.
    """,

"%capital_expenditure_to_ebitda": r"""
        ## Capital Expenditure to EBITDA
        
        Capital expenditure expressed as a percentage of EBITDA.
    """,

"%operating_cash_flow_to_ebitda": r"""
        ## Operating Cash Flow to EBITDA
        
        Operating cash flow expressed as a percentage of EBITDA.
    """,

"historical_years": r"""
        ## Historical Years
        
        The number of years of historical data used to calculate averages and trends for analysis.
    """,

"projection_years": r"""
        ## Projection Years
        
        The number of years into the future for which the analysis projects financial performance and metrics.
    """,
})

print(f"End of model.")

Estimated Value

USD

Market Price USD

* Values are not guaranteed, please do your own
research before making investment decisions.

Discounted Free Cash Flow - Exit EBITDA Multiple

Discounted Free Cash Flow calculates the value of a share based on the company's estimated future Free Cash Flow figures.

Interactive Assumptions

Discount Rate Discount Rate `Discount Rate` = `Equity Weight` * `Cost of Equity` + `Debt Weight` * `Cost of Debt` * (1 - `Tax Rate`) Calculated using Weighted Average Cost of Capital (WACC) formula. It represents a firm’s average after-tax cost of capital from all sources, including common stock, preferred stock, bonds, and other forms of debt. Read More Cost of Equity `Cost of Equity` = `Risk Free Rate` + `Beta` * `Market Premium` The cost of equity is the theoretical rate of return that an equity investment should generate. It is calculated using the CAPM formula. Read More Cost of Debt `Cost of Debt` = `Interest Expense` / `Total Debt` The cost of debt is the effective rate that a company pays on its debt, such as bonds and loans. Read More Equity & Debt Weights `Debt Weight` = `Total Debt` / (`Market Capitalization` + `Total Debt`) = 1 - `Equity Weight` The Equity Weight represents the proportion of equity-based financing (Market Capitalization), while the Debt Weight represents the proportion of debt-based financing (Total Debt). Tax Rate `Tax Rate` = `Income Tax Expense` / `Income Before Tax` The overall tax rate paid by the company on its earned income.	%
↳ Beta Beta Beta measures the volatility of a stock's price in relation to the overall stock market. A higher beta indicates greater price fluctuations relative to the market.	#
↳ Risk Free Rate Risk-Free Rate The risk-free rate represents the return an investor expects from an absolutely risk-free investment over a specified time period. By default, it is set to the current yield of the U.S. 10-Year Treasury Bond.	%
↳ Market Premium Market Premium The market risk premium represents the additional return over the risk-free rate that investors expect for taking on the risks associated with equities.	%
↳ Tax Rate Tax Rate `Tax Rate` = `Income Tax Expense` / `Income Before Tax` This is the company’s effective tax rate, reflecting the average rate of tax actually paid on its pre-tax earnings (including all statutory, deferred, and non-recurring items). This rate is used to adjust the after-tax cost of debt, since interest expense is tax-deductible. Discount Rate `Discount Rate` = `Debt Weight` × `Cost of Debt` × (1 − `Tax Rate`) + `Equity Weight` × `Cost of Equity`	%
Revenue Growth Rate Revenue Growth Rate The annual growth rate applied to projected revenue, starting from the second projection year onward.	%
Exit Ebitda Multiple Exit EBITDA Multiple The exit EV/EBITDA multiple used to calculate the terminal value.	#
Ebitda Margin EBITDA Margin EBITDA expressed as a percentage of Revenue.	%
Capital Expenditure To Ebitda Capital Expenditure to EBITDA Capital expenditure expressed as a percentage of EBITDA.	%
Operating Cash Flow To Ebitda Operating Cash Flow to EBITDA Operating cash flow expressed as a percentage of EBITDA.	%
Historical Years Historical Years The number of years of historical data used to calculate averages and trends for analysis.	#
Projection Years Projection Years The number of years into the future for which the analysis projects financial performance and metrics.	#

Results
Exit EBITDA Multiple (EV/EBITDA)	19.21
Terminal EBITDA	227.1 Bil. USD
Terminal Enterprise Value	4,363 Bil. USD
Discounted Terminal Enterprise Value	2,845 Bil. USD
Sum of Discounted Free Cash Flow	479.6 Bil. USD
Present Enterprise Value	3,324 Bil. USD
Cash and Equivalents	102 Bil. USD
Total Debt	60.56 Bil. USD
Present Equity Value	3,366 Bil. USD
Shares Outstanding	7.43 Bil.
Estimated Value per Share	452.8 USD
Yield of the U.S. 10 Year Treasury Note	4.24%
Cost of Equity	9.03%
Equity Weight	98.26%
Cost of Debt	4.13%
Debt Weight	1.74%
Forecasted Revenue - 5 Year CAGR	11.14%
Forecasted Free Cash Flow - 5 Year CAGR	15.32%

Historical and Forecasted Data

Monetary values in USD

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136162000000}, {"l": "2026", "x": "2026-06-30", "y": 137881208069, "oy": 137881208069, "e": true, "d": 2026, "g": 1.26, "og": 1.26}, {"l": "2027", "x": "2027-06-30", "y": 153241174648, "oy": 153241174648, "e": true, "d": 2027, "g": 11.14, "og": 11.14}, {"l": "2028", "x": "2028-06-30", "y": 170312241504, "oy": 170312241504, "e": true, "d": 2028, "g": 11.14, "og": 11.14}, {"l": "2029", "x": "2029-06-30", "y": 189285025208, "oy": 189285025208, "e": true, "d": 2029, "g": 11.14, "og": 11.14}, {"l": "2030", "x": "2030-06-30", "y": 210371377016, "oy": 210371377016, "e": true, "d": 2030, "g": 11.14, "og": 11.14}], "dataType": ".", "displayAs": "line", "dataTimeseries": "annual", "hidden": false}, {"label": "EBITDA", "mappingKey": "income:ebitda", "data": [{"l": "2016", "x": "2016-06-30", "y": 32700000000}, {"l": "2017", "x": "2017-06-30", "y": 37803000000}, {"l": "2018", "x": "2018-06-30", "y": 45319000000}, {"l": "2019", "x": "2019-06-30", "y": 54641000000}, {"l": "2020", "x": "2020-06-30", "y": 65755000000}, {"l": "2021", "x": "2021-06-30", "y": 81602000000}, {"l": "2022", "x": "2022-06-30", "y": 97843000000}, {"l": "2023", "x": "2023-06-30", "y": 102384000000}, {"l": "2024", "x": "2024-06-30", "y": 131720000000}, {"l": "2025", "x": "2025-06-30", "y": 162681000000}, {"l": "2026", "x": "2026-06-30", "y": 148851568681, "oy": 148851568681, "e": true, "d": 2026, "g": -8.5, "og": -8.5}, {"l": "2027", "x": "2027-06-30", "y": 165433633432, "oy": 165433633432, "e": true, "d": 2027, "g": 11.14, "og": 11.14}, {"l": "2028", "x": "2028-06-30", "y": 183862940196, "oy": 183862940196, "e": true, "d": 2028, "g": 11.14, "og": 11.14}, {"l": "2029", "x": "2029-06-30", "y": 204345271734, "oy": 204345271734, "e": true, "d": 2029, "g": 11.14, "og": 11.14}, {"l": "2030", "x": "2030-06-30", "y": 227109335006, "oy": 227109335006, "e": true, "d": 2030, "g": 11.14, "og": 11.14}], "dataType": ".", "displayAs": "line", "dataTimeseries": "annual", "hidden": false}, {"label": "Free Cash Flow", "mappingKey": "flow:freeCashFlow", "data": [{"l": "2016", "x": "2016-06-30", "y": 24982000000}, {"l": "2017", "x": "2017-06-30", "y": 31378000000}, {"l": "2018", "x": "2018-06-30", "y": 32252000000}, {"l": "2019", "x": "2019-06-30", "y": 38260000000}, {"l": "2020", "x": "2020-06-30", "y": 45234000000}, {"l": "2021", "x": "2021-06-30", "y": 56118000000}, {"l": "2022", "x": "2022-06-30", "y": 65149000000}, {"l": "2023", "x": "2023-06-30", "y": 59475000000}, {"l": "2024", "x": "2024-06-30", "y": 74071000000}, {"l": "2025", "x": "2025-06-30", "y": 71611000000}, {"l": "2026", "x": "2026-06-30", "y": 95726443819, "oy": 95726443819, "e": true, "d": 2026, "g": 33.68, "og": 33.68}, {"l": "2027", "x": "2027-06-30", "y": 106390369660, "oy": 106390369660, "e": true, "d": 2027, "g": 11.14, "og": 11.14}, {"l": "2028", "x": "2028-06-30", "y": 118242256840, "oy": 118242256840, "e": true, "d": 2028, "g": 11.14, "og": 11.14}, {"l": "2029", "x": "2029-06-30", "y": 131414444252, "oy": 131414444252, "e": true, "d": 2029, "g": 11.14, "og": 11.14}, {"l": "2030", "x": "2030-06-30", "y": 146054013342, "oy": 146054013342, "e": true, "d": 2030, "g": 11.14, "og": 11.14}], "dataType": ".", "displayAs": "line", "dataTimeseries": "annual", "hidden": false}, {"label": "Capital Expenditure", "mappingKey": "positiveCapitalExpenditure", "data": [{"l": "2016", "x": "2016-06-30", "y": 8343000000}, {"l": "2017", "x": "2017-06-30", "y": 8129000000}, {"l": "2018", "x": "2018-06-30", "y": 11632000000}, {"l": "2019", "x": "2019-06-30", "y": 13925000000}, {"l": "2020", "x": "2020-06-30", "y": 15441000000}, {"l": "2021", "x": "2021-06-30", "y": 20622000000}, {"l": "2022", "x": "2022-06-30", "y": 23886000000}, {"l": "2023", "x": "2023-06-30", "y": 28107000000}, {"l": "2024", "x": "2024-06-30", "y": 44477000000}, {"l": "2025", "x": "2025-06-30", "y": 64551000000}, {"l": "2026", "x": "2026-06-30", "y": 42154764250}, {"l": "2027", "x": "2027-06-30", "y": 46850804988}, {"l": "2028", "x": "2028-06-30", "y": 52069984663}, {"l": "2029", "x": "2029-06-30", "y": 57870580955}, {"l": "2030", "x": "2030-06-30", "y": 64317363673}], "dataType": ".", "displayAs": "line", "dataTimeseries": "annual", "hidden": true}, {"label": "Discounted Free Cash Flow", "mappingKey": "discountedFreeCashFlow", "data": [{"l": "2016", "x": "2016-06-30", "y": 24982000000}, {"l": "2017", "x": "2017-06-30", "y": 31378000000}, {"l": "2018", "x": "2018-06-30", "y": 32252000000}, {"l": "2019", "x": "2019-06-30", "y": 38260000000}, {"l": "2020", "x": "2020-06-30", "y": 45234000000}, {"l": "2021", "x": "2021-06-30", "y": 56118000000}, {"l": "2022", "x": "2022-06-30", "y": 65149000000}, {"l": "2023", "x": "2023-06-30", "y": 59475000000}, {"l": "2024", "x": "2024-06-30", "y": 74071000000}, {"l": "2025", "x": "2025-06-30", "y": 71611000000}, {"l": "2026", "x": "2026-06-30", "y": 92118015861}, {"l": "2027", "x": "2027-06-30", "y": 93988655651}, {"l": "2028", "x": "2028-06-30", "y": 95874817083}, {"l": "2029", "x": "2029-06-30", "y": 97821746205}, {"l": "2030", "x": "2030-06-30", "y": 99808211600}], "dataType": ".", "displayAs": "line", "dataTimeseries": "annual", "hidden": true}], "editableDates": {"2026-06-30": 41, "2027-06-30": 42, "2028-06-30": 43, "2029-06-30": 44, "2030-06-30": 45}, "properties": {"display_table": true}, "width": "full"}

Edit Chart Values	2026-06-30	2027-06-30	2028-06-30	2029-06-30	2030-06-30

↳ Growth Rate

Estimated Future Data

Monetary values in USD amounts except #	2025 Jun 30	LTM Jan 17	2026 Jun 30	2027 Jun 30	2028 Jun 30	2029 Jun 30	2030 Jun 30
Revenue	281,724	293,812	313,108	347,988	386,754	429,839	477,723
Revenue Growth Rate	14.93%	4.29%	11.14%	11.14%	11.14%	11.14%	11.14%
EBITDA	162,681	175,768	148,852	165,434	183,863	204,345	227,109
EBITDA Margin	57.74%	59.82%	47.54%	47.54%	47.54%	47.54%	47.54%
Operating Cash Flow	136,162	147,039	137,881	153,241	170,312	189,285	210,371
Operating Cash Flow to EBITDA	83.7%	83.66%	92.63%	92.63%	92.63%	92.63%	92.63%
Capital Expenditure	64,551	69,022	42,155	46,851	52,070	57,871	64,317
Capital Expenditure to EBITDA	39.68%	39.27%	28.32%	28.32%	28.32%	28.32%	28.32%
Free Cash Flow	71,611	78,017	95,726	106,390	118,242	131,414	146,054
Free Cash Flow to EBITDA	44.02%	44.39%	64.31%	64.31%	64.31%	64.31%	64.31%
Compounded Discount Rate			3.92%	13.19%	23.33%	34.34%	46.33%
Discounted Free Cash Flow	71,611	78,017	92,118	93,989	95,875	97,822	99,808

Historical Data

Monetary values in USD amounts except #	Average	LTM Jan 17	2025 Jun 30	2024 Jun 30	2023 Jun 30	2022 Jun 30	2021 Jun 30	2020 Jun 30	2019 Jun 30	2018 Jun 30	2017 Jun 30	2016 Jun 30
Revenue	178,716	293,812	281,724	245,122	211,915	198,270	168,088	143,015	125,843	110,360	96,571	91,154
Revenue Growth Rate	11.14%	4.29%	14.93%	15.67%	6.88%	17.96%	17.53%	13.65%	14.03%	14.28%	5.94%	-2.59%
Cost of Revenue	57,168	91,775	87,831	74,114	65,863	62,650	52,232	46,078	42,910	38,353	34,261	32,780
Gross Profit	121,548	202,037	193,893	171,008	146,052	135,620	115,856	96,937	82,933	72,007	62,310	58,374
Gross Margin	67.37%	68.76%	68.82%	69.76%	68.92%	68.4%	68.93%	67.78%	65.9%	65.25%	64.52%	64.04%
EBITDA	89,838	175,768	162,681	131,720	102,384	97,843	81,602	65,755	54,641	45,319	37,803	32,700
EBITDA Margin	47.54%	59.82%	57.74%	53.74%	48.31%	49.35%	48.55%	45.98%	43.42%	41.06%	39.15%	35.87%
Net Income	58,852	104,912	101,832	88,136	72,361	72,738	61,271	44,281	39,240	16,571	25,489	20,539
Net Income to EBITDA	65.02%	59.69%	62.6%	66.91%	70.68%	74.34%	75.09%	67.34%	71.81%	36.57%	67.43%	62.81%
Cash from Operating Activities	80,426	147,039	136,162	118,548	87,582	89,035	76,740	60,675	52,185	43,884	39,507	33,325
Cash from Operating Activities to EBITDA	92.63%	83.66%	83.7%	90%	85.54%	91%	94.04%	92.27%	95.51%	96.83%	104.5%	101.9%
Capital Expenditure	28,012	69,022	64,551	44,477	28,107	23,886	20,622	15,441	13,925	11,632	8,129	8,343
Capital Expenditure to EBITDA	28.32%	39.27%	39.68%	33.77%	27.45%	24.41%	25.27%	23.48%	25.48%	25.67%	21.5%	25.51%
Free Cash Flow	52,413	78,017	71,611	74,071	59,475	65,149	56,118	45,234	38,260	32,252	31,378	24,982
Free Cash Flow to EBITDA	64.32%	44.39%	44.02%	56.23%	58.09%	66.59%	68.77%	68.79%	70.02%	71.17%	83%	76.4%

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Microsoft Corporation Discounted Free Cash Flow - Exit Multiple

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Market Price USD

Discounted Free Cash Flow - Exit EBITDA Multiple

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Discount Rate

Cost of Equity

Cost of Debt

Equity & Debt Weights

Tax Rate

Beta

Risk-Free Rate

Market Premium

Tax Rate

Discount Rate

Revenue Growth Rate

Exit EBITDA Multiple

EBITDA Margin

Capital Expenditure to EBITDA

Operating Cash Flow to EBITDA

Historical Years

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Results

Historical and Forecasted Data

Estimated Future Data

Historical Data