Microsoft (MSFT) is a systems software company in the Information Technology sector. Listed on the NASDAQ, Microsoft is a component of the S&P 500 index. As of 2026-06-10, the stock is trading at $397.36.
Key Metrics & Risk
Based on 5-year historical data from Yahoo Finance (daily returns, annualized using 252 trading days).
| Metric | Value |
|---|---|
| Latest Price | $397.36 |
| Latest Date | 2026-06-10 |
| Expected Return (Annualized) | 13.07% |
| Risk / Std Dev (Annualized) | 26.67% |
| Sharpe Ratio (rf=4.5%) | 0.32 |
S&P 500 Context
- Sector: Information Technology
- Sub-Industry: Systems Software
- Exchange: NASDAQ
- Index: S&P 500 Component
Risk/Return Profile
The stock shows an annualized expected return of 13.07% with an annualized volatility of 26.67%. The Sharpe ratio of 0.32 (assuming 4.5% risk-free rate) indicates below-average risk-adjusted returns relative to the risk-free rate.
Modern Portfolio Theory Positioning
This stock is plotted on the S&P 500 Modern Portfolio Theory chart which visualizes the risk/return trade-off across all S&P 500 components. The chart uses Sharpe ratio as the color dimension, allowing quick identification of stocks with superior risk-adjusted performance.
Fundamentals
| Metric | Value |
|---|---|
| Market Cap | 2951.76B |
| Enterprise Value | 2998.97B |
| Trailing P/E | 23.68 |
| Forward P/E | 20.49 |
| Price to Book | 7.12 |
| Price to Sales | 9.27 |
| EV/Revenue | 9.42 |
| EV/EBITDA | 16.26 |
| Profitability | | | Profit Margin | 39.34% | | Operating Margin | 46.33% | | ROE | 34.01% | | ROA | 14.81% |
| Growth | | | Revenue Growth | 18.3% | | Earnings Growth | 23.4% |
| Dividend | | | Dividend Yield | 92.0% | | Payout Ratio | 20.73% | | 5Y Avg Yield | 79.0% |
| Financial Health | | | Total Revenue | 318.27B | | Total Debt | 125.43B | | Total Cash | 78.23B | | Free Cash Flow | 37.01B | | Operating Cash Flow | 170.14B |
| Price & Technical | | | 52W High | $555.45$ | | 52W Low | $356.28$ | | 50-Day Avg | $410.2$ | | 200-Day Avg | $455.41$ | | Beta | 1.1 | | Shares Outstanding | 7.43B | | Float Shares | 7.42B | | Insider Holdings | 0.08% | | Institutional Holdings | 75.78% | | Short Ratio | 2.42 | | Short % of Float | 1.19% |
| Analyst Targets | | | Target High | $870.0$ | | Target Low | $400.0$ | | Target Mean | $560.95$ | | Target Median | $555.0$ | | # of Analysts | 55 | | Recommendation | strong_buy |
Disclaimer
This analysis is for educational purposes only and does not constitute financial advice. Past performance is not indicative of future results. Always conduct your own research or consult a qualified financial advisor before making investment decisions.