Microsoft Corporation 🇺🇸
MSFT • Consumer Cyclical • USA
⚡ 80.0/100
Wide Moat Score™
$507.29
-1.22% (24H)
Fundamental Snapshot • Market Cap: $3.8T
PEG Ratio
1.47x
EXPANDED
Forward P/E
26.0x
GROWTH FAIR
Revenue Growth YoY
+17.7%
ROBUST EXPANSION
Gross Margin
67.9%
HIGH PRICING POWER
Free Cash Flow
$16.5B
CASH FORTRESS
Debt / EBITDA
0.7x
SOLVENT BALANCE
📊 Proprietary 12-Point Fundamental Audit
| Audit Dimension | Benchmark Criterion | MSFT Actual | Evaluation |
|---|---|---|---|
| 1. Economic Moat Strength | Software lock-in / high switching barrier / patent moat | Moat Score 80.0/100 | ✅ WIDE MOAT |
| 2. Pricing Power & Margins | Gross Margin > 40% sustainable | 67.9% Gross Margin | ✅ PASSED |
| 3. Revenue Acceleration | YoY Top-Line Growth > 15% | +17.7% YoY | ✅ PASSED |
| 4. Peter Lynch PEG Ratio | PEG < 1.2x (Growth at a Reasonable Price) | 1.47x PEG Ratio | ⚠️ ELEVATED |
| 5. Fortress Balance Sheet | Debt / EBITDA < 2.5x | 0.7x Net Leverage | ✅ PASSED |
| 6. Free Cash Flow Generation | Positive and compounding FCF | $16.5B Free Cash Flow | ✅ PASSED |
| 7. Multiple vs Sector Median | Forward P/E reasonable vs earnings growth | Forward P/E: 26.0x | ✅ ATTRACTIVE MULTIPLE |
| 8. Management & Insider Ownership | Insider Ownership > 3% | 0.1% Insider Equity | ℹ️ INSTITUTIONAL |
| 9. Superinvestor Whale Backing | Held by Top 25 13F Wall St Whales | Nancy Pelosi, Stanley Druckenmiller | ✅ 13F WHALE BACKED |
| 10. Secular Industry Tailwinds | Exposure to multi-year compound themes | Consumer Cyclical sector expansion | ✅ PASSED |
| 11. Trailing P/E Multiple | Historical earnings multiple sanity | Trailing P/E: 28.6x | ✅ PASSED |
| 12. Overall Moat Conviction | Composite algorithmic evaluation | Overall Score: 80.0/100 | ✅ HIGH CONVICTION |
📝 MoatPicks Investment Thesis
Competitive Moat Breakdown: High-quality compounder passing 8/9 fundamental checks. Strong balance sheet with Forward PER compression (26.0x vs 28.6x) and robust Free Cash Flow generation.
Valuation Verdict: Trading at a Forward P/E of 26.0x and PEG ratio of 1.47x, Microsoft Corporation satisfies core fundamental screens for quality and durability.
🐋 Tracked Superinvestor Backing
🎯 Nancy Pelosi 🎯 Stanley Druckenmiller