Discounted Cash Flow
Microsoft Corp.
—
—
Average annual growth rates
| Metric | 10-Year | 5-Year | 3-Year |
|---|---|---|---|
| Sales | — | — | — |
| Free Cash Flow | — | — | — |
| Average (FCF & NI) | — | — | — |
| Net Income | — | — | — |
Endpoint CAGR (better for long term trend)
| Metric | 10-Year | 5-Year | 3-Year |
|---|---|---|---|
| Sales | — | — | — |
| Free Cash Flow | — | — | — |
| Average (FCF & NI) | — | — | — |
| Net Income | — | — | — |
Projected growth rate
—
—
%
%
Historical inputs (10 fiscal years)
| YEAR | Sales | Net Income | Free Cash Flow | Net Margin | EPS (diluted) |
|---|---|---|---|---|---|
| 2016 | $85.3b | $16.8b | $-96.4b | 19.7% | $2.12 |
| 2017 | $90.0b (5.4%) | $21.2b (26.2%) | $-137.4b (-42.5%) | 23.6% (19.7%) | $2.74 (29.2%) |
| 2018 | $110.4b (22.7%) | $16.6b (-21.8%) | $-93.5b (32.0%) | 15.0% (-36.3%) | $2.15 (-21.5%) |
| 2019 | $125.8b (14.0%) | $39.2b (136.8%) | $-5.5b (94.1%) | 31.2% (107.7%) | $5.11 (137.7%) |
| 2020 | $143.0b (13.6%) | $44.3b (12.8%) | $-16.5b (-199.6%) | 31.0% (-0.7%) | $5.82 (13.9%) |
| 2021 | $168.1b (17.5%) | $61.3b (38.4%) | $13.8b (183.7%) | 36.5% (17.7%) | $8.12 (39.5%) |
| 2022 | $198.3b (18.0%) | $72.7b (18.7%) | $62.6b (352.9%) | 36.7% (0.6%) | $9.70 (19.5%) |
| 2023 | $211.9b (6.9%) | $72.4b (-0.5%) | $49.9b (-20.2%) | 34.1% (-6.9%) | $9.72 (0.2%) |
| 2024 | $245.1b (15.7%) | $88.1b (21.8%) | $100.8b (101.9%) | 36.0% (5.3%) | $11.86 (22.0%) |
| 2025 | $281.7b (14.9%) | $101.8b (15.5%) | $106.4b (5.5%) | 36.1% (0.5%) | $13.70 (15.5%) |
| 2026 | $331.8b (17.8%) | $133.7b (31.3%) | $124.6b (17.1%) | 40.3% (11.5%) | $18.00 (31.4%) |
Base FCF: — (latest fiscal year)
Discount rate: % —
Terminal growth: —
Projection period: — years
Alt A decline yrs:
Alt B total yrs:
Values abbreviated: b = billions, m = millions, k = thousands.
Projected cash flows
| Year | Projected cash flow | Discount Factor | Present Value |
|---|
PV of projected FCF: —
Terminal FCF: —
Terminal value: —
PV of terminal value: —
Enterprise value (DCF): —
Current price: —
—Alternative DCF Models
| Model | Fair Value | Upside | PV(FCFs) | PV(Terminal) | Total Years |
|---|---|---|---|---|---|
| Standard (10yr→TV) | — | — | — | — | 10 + TV |
| Alt A (Gradual Decline) | — | — | — | — | — |
| Alt B (30yr Hard Stop) | — | — | — | N/A | — |
This is a simplified DCF model for illustration. It uses reported free cash flow, a single growth assumption, fixed WACC, and a Gordon Growth terminal value. It is not investment advice.