An Eye on Price to Book (P/B) Ratio Microsoft Corporation (MSFT)

Microsoft Corporation (MSFT) stock price traded with dropping change along with the volume 18.06 million shares in Friday trading session. Shares are trading price at $107.58 with move of -0.06%. The company’s 3-months average volume stands at 25.51 million. When we divide the last trade volume by the 3-month average volume, we found out a relative volume of 0.71. Recent trade price levels places MSFT’s stock about -3.21% away from the 52-week high and closed 50.04% away from the 52-week low. The total dollar value of all 7.67 billion outstanding shares is 825.56 billion. It has a dividend yield of 1.56%.

Return on Assets (ROA) ratio indicates how profitable a company is relative to its total assets. The ROA is 6.60%. A company that manages their assets well will have a high return, while if manages their assets poorly will have a low return.

Common shareholders want to know how profitable their capital is in the businesses they invest it in. The company gives a ROE of 20.10%. The higher the ROE, the better the company is at generating profits.

ROI is 17.60%. A positive result means that returns exceed costs. Analysts therefore consider the investment a net gain. The opposite kind of result, a negative means that costs outweigh returns. Analysts therefore view the investment as a net loss.

Currently Analysts have a mean recommendation of 1.70 on the shares. This is based on a 1-5 numeric scale where Rating Scale: 1.0 Strong Buy, 2.0 Buy, 3.0 Hold, 4.0 Sell, 5.0 Strong Sell.

74.80% shares of the company possessed by Institutional Investors. The net percent change held by Institutional Investors has seen a change of -0.24% in last three month period. Insiders own 1.40% of Microsoft Corporation (MSFT) shares. During last six month record, the net percent change kept by insiders has observed a change of -0.41%. The stock volatility for week was 1.51% while for month was 1.66%.

the stock has P/B of 9.99. The price-to-book ratio (P/B Ratio) is a ratio used to compare a stock’s market value to its book value. It is calculated by dividing the current closing price of the stock by the latest quarter’s book value per share. A lower P/B ratio could mean that the stock is undervalued. However, it could also mean that something is fundamentally wrong with the company. As with most ratios, be aware that this varies by industry. This ratio also gives some idea of whether you’re paying too much for what would be left if the company went bankrupt immediately.

Microsoft Corporation (MSFT) recently closed with fall of -0.46% to its 20-Day Simple Moving Average. This short time frame picture represents a downward movement of current price over average price of last 20 days. Now moving toward intermediate time frame, 50-day Moving average is more useful at showing position trading trends lasting 50 days. Shares of MSFT moved upward with change of 3.40% to its 50-day Moving average. This rising movement shows positive prices direction over last 50 days.

Finally observing long term time frame, 200-day simple moving average is more helpful at telling general investing trends lasting 200 days. Longer moving average timeframes are less sensitive to price fluctuations than shorter term timeframes and will generate far few signals. This will reduce the number of “whipsaws”, which is good, but will also generate signals later than when using shorter term averages. MSFT stock price revealed optimistic move of 14.35% comparing average price of last 200 days. This comparison showed up direction of price above its 200-SMA.

ATR value of company was 1.73. Average True Range (ATR) is an indicator based on trading ranges smoothed by an N-period exponential moving average percentage of the true range values. ATR can display volatility of stocks, ETFs and indexes. The principal of ATR is very similar to other volatility indicators: A high ATR value signals a possible trend change. A low ATR value correlates with a weaker trend movement.

EPS in next five year years is expected to touch 12.42% while EPS growth in past 5 year was 8.50% along with sales growth of 7.20% in the last five years. EPS growth in next year is estimated to reach 14.78% while EPS growth estimate for this year is set at 19.30%.

The price/earnings ratio (P/E) is 27.62 and the forward P/E ratio stands at 21.92. The price to earnings growth ratio is 2.22 and the price to sales ratio is 7.48. The lower price P/S ratio indicates attractive the investment. A low P/S can also be effective in valuing growth stocks that have suffered a temporary setback. A low P/S ratio may indicate possible undervaluation, while a ratio that is significantly above the average may suggest overvaluation. Abbreviated as the P/S ratio or PSR, this ratio is also known as a “sales multiple” or “revenue multiple.”

Edgar gives us an insight into the most recent news hitting the Technology Sector in Wall Street Market. He has been an independent financial adviser for over 10 years in the city and in recent years turned her experience in finance and passion for journalism into a full-time role. He performs analysis of Companies and publicizes valuable information for shareholder community.
Edgar is an accomplished journalist who has a passion for travel. His desire to see the world has taken him to countries around the world and given him the opportunity to report for some of the top news organizations.

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