MSFT · Discounted Cash Flow Valuation

Microsoft DCF Valuation: Intrinsic Value Calculator

Microsoft Corporation (MSFT) DCF model with live financials. See the pre-loaded intrinsic value estimate below, then adjust growth and discount rate assumptions in the full calculator.

DCF Snapshot

Current Price$370.87

Market Cap$2.8T

TTM Free Cash Flow$53.6B

Intrinsic Value / Share$233.57

Upside / Downside-37.0%

Assumptions

FCF Growth Rate12%

Discount Rate (WACC)9%

Terminal Growth2.5%

Projection Period10 years

These are conservative starting assumptions. Adjust them in the full calculator to test your own thesis.

What Drives Microsoft's DCF

Microsoft's DCF rests on three durable revenue engines: Azure cloud (growing 30%+), Office 365 / Microsoft 365 subscriptions (1.5B+ commercial seats with high retention), and LinkedIn + gaming (Activision Blizzard). Azure is the key growth driver, competing with AWS for enterprise cloud workloads and benefiting from Copilot AI integration. Operating margins exceed 44%. Key assumptions: Azure sustains 25%+ growth for 3-5 years, Office 365 ARPU expands via AI add-ons, and capex intensity rises but stays manageable relative to operating cash flow.

Adjust these assumptions in the full DCF calculator →Get the full MSFT analysis →

More tools & guides

DCF Calculator

Run a full DCF on any ticker with live data

DCF Analysis Guide

The complete guide to building and stress-testing a DCF model

Intrinsic Value Calculator

Compare DCF, earnings power, and asset-based valuations side by side