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Microsoft Corporation (MSFT)

Earnings Projections

Valuation Statistics

Market Cap: $2834B
Beta: 1.0
Risk Free Rate: 4.34%
Equity Risk Premium: 4.6%
Discount Rate: 8.94%
Terminal Multiple: 20.0
Valuation: $1626B
Expected Return: -42.61%

Research Report

The projections are based on Microsoft's strong historical performance, strategic investments in AI and cloud infrastructure, and its ability to adapt to market changes. The growth rates reflect a gradual transition from higher growth driven by new technologies to a more stable growth phase. The terminal multiple of 20 is chosen based on Microsoft's industry leadership, strong financials, and the expectation of continued innovation, balanced by market maturity and competitive pressures.

Market Cap: Earnings vs Multiple Contribution

Earnings Yield vs Treasury and Corp Bonds