MSFT - Embedded Expectations Analysis - 2021 11 22
Microsoft Corporation (MSFT) currently trades at a historical high relative to Uniform earnings, with a 32.1x Uniform P/E (Fwd. V/E').At these levels, markets are pricing in expectations for Uniform ROA to reach record highs, accompanied by 7% Uniform asset growth.
Meanwhile, analysts expect Uniform ROA to slightly improve to 36% in 2023, accompanied by 16% Uniform asset growth.
If sustained going forward, these levels would imply a stock price closer to $340, representing marginal 2% equity upside for the firm.
Moreover, the firm's most recent earnings call suggests management may have concerns about Microsoft Cloud, revenue growth, and Azure.
Microsoft is a technology company. The company develops and supports software, services, devices, and solutions. The company provides an array of services, including cloud-based solutions as well as solution support and consulting services. The company also delivers relevant online advertising. The company's products include operating systems; cross-device productivity applications; server applications; business solution applications; desktop and server management tools; software development tools; and video games. The company also designs, manufactures, and sells devices, including personal computers, tablets, gaming and entertainment consoles, other devices, and related accessories.
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