Thu Pham - MSFT Valuation

Analysis and Valuation Project

Thu Pham Tucker Hess Tung Do Uriel Ramirez

TABLE OF CONTENTS

MICROSOFT ANALYSIS A PART 1: COMPANY DESCRIPTION AND BACKGROUBUSINESS SUMMARY DOMESTIC AND FOREIGN MARKETS BUSINESS RISKS AND OUTSTANDING

PART 2: BUSINESS MODEL SWOT ANALYSIS REVENUE DRIVERS EXPENSE DRIVERS PART 3: RECENT FINANCIAL PERFORMANC PART 4: PEER GROUP ANALYSISCOMPARATIVE DATA PORTER’S FIVE FORCES RATIO ANALYSIS PART 5: FUTURE PERFORMANCE ANALYSISLIST OF ASSUMPTIONS PROJECTING FINANCIAL STATEMENTS

PART 6: WEIGHTED AVERAGE COSWACC FORMULA MSFT WACC CALCULATION CAPITAL STRUCTURE ANALYSIS PART 7: COMMON SHARES VALUATIONFREE CASH FLOW TO EQUITY DIVIDEND DISCOUNT MODEL DISCOUNTED CASH FLOW INTRINSIC VALUE PE RATIO PART 8: CONCLUSION AND RECOMMENDATION PART 9: TABLES AND SPREADSHEETSHISTORICAL FINANCIAL STATEMENTS

FORECAST OF FUTURE FINANCIAL STATEMENTS

EARNINGS PER SHARE

PART 10: BIBLIOGRAPHY

MICROSOFT ANALYSIS AND VALUATION PROJECT

RIPTION AND BACKGROUND

UTSTANDING LITIGATION

FINANCIAL PERFORMANCE ANALYSIS

NALYSIS

RMANCE ANALYSIS

TATEMENTS

WEIGHTED AVERAGE COST OF CAPITAL ANALYSIS

S VALUATION

ND RECOMMENDATION

PREADSHEETS TATEMENTS

TATEMENTS

ND VALUATION PROJECT

1 1

1 2

4 4

5 5

6

7 7

7 8

9 9

9

10 10

10 11

13 13 14

14 15

15

16

17 17

20

24

25

PART 1: COMPANY DESCRIPTION AND BACKGROUND

MICROSOFT ANALYSIS AND VALUATION PROJECT | 1

COMPANY DESCRIPTION AND BACKGROUND

Business Summary Founded in 1975, Microsoft Corporation develops, licenses, markets, and supports software, services, and devices worldwide, and is based in Redmond, Washington. The company is comprised of the following segments:

Company Microsoft Sector Business Software

and Services Industry Computer Software

and Hardware Ticker MSFT Exchange NASDAQ Price $41.42 52 Week Low $38.51 52 Week High $50.04 Market Cap 340.70B Shares 8.20B Beta 1.08 P/E 16.71 EPS 2.63

• Devices and Consumer (D&C) Licensing Segment: licenses Windows operating system and related software; Microsoft Office for consumers; and Windows Phone operating system.

• Computing and Gaming Hardware segment: provides Xbox gaming and entertainment consoles and accessories.

• Phone Hardware segment: produces Lumia Smartphones and other non-‐Lumia phones.

• D&C Other segment: provides Windows Store, Xbox Live transactions, and Windows Phone Store; search advertising; display advertising.

• Commercial Licensing segments: licenses server products, including Windows Server, Microsoft SQL Server, and Visual Studio.

Microsoft markets and allocates its products through original equipment manufacturers, distributors, resellers, and online retailers. Domestic and Foreign Markets In FY 2014, Microsoft’s revenue was $86.8 billion in total. Revenue generated from foreign countries accounts for 49.9% while revenue generated domestically is 50.1%.



Assets: $40.1B Nearly half of the company assets are located in the United States (44.0%), while the rest in Finland (24.5%), Luxembourg (17.2%), and other countries (14.2%).

Business Risks and Outstanding Litigation

• Execution and competitive risks brought by the cloud-‐based computing model. Microsoft is in its transition to a computing environment to provide cloud-‐based services for smart devices. The company has to invest a huge amount of resources in software development and infrastructure, while its competitors are also rapidly developing and delivering these services to customers. This might decrease the revenues and operating margins that have been previously achieved. In addition, it is still uncertain whether the strategies used could successfully attract customers or generate required revenue.



• Intense competition Microsoft faces intense competition across all markets for its products services, with competitors range from Fortune 100 companies to small businesses. Software vendors are devoting enormous efforts to building software that mimics the features of Microsoft products and even violates its intellectual property rights and then sell at little to no cost. In response to competition, Microsoft continues to develop its products with basic functions and sell them at lower prices than the standard versions. These competitive pressures can reduce sales volume, price, and increase operating costs, which would decrease margins and revenues.

• Intellectual property rights Protecting intellectual property rights globally, especially in countries where laws are less protective of these rights, is challenging and Microsoft might now be able to adequately do this. As a result, this problem will decrease revenue in those countries and hence, negatively affect Microsoft’s revenue in total. In addition, the company needs to spend more money and efforts to educate customers and lawmakers about the benefits of promoting licensing products.

• Security vulnerabilities Hackers might develop viruses that attack Microsoft products, networks, and data centers. Even though this is an industry-‐wide problem, Microsoft endures the highest risk since it is one of the most popular operating systems. The company might also experience outages and data losses if it fails to implement an adequate operations infrastructure.

PART 2: BUSINESS MODEL


BUSINESS MODEL

SWOT Analysis

Strengths – Brand loyalty and reputation: globally, Microsoft has always been the most popular OS and software provider and accounts for over 90% of market share. – Simple software: Microsoft products are easy to use and still maintain great quality. – Strong distribution channels: Microsoft works with all major computer hardware producers and computer retailers to sell pre-‐installed Windows software computers. – Acquisition of Skype: With 300 million users, Skype boosts Microsoft’s online presence and advertising. – Strong hinancial performance: Increased revenue and a large amount of cash to use for investments and acquisitions.

Weaknesses – Poor investments and acquisitions: Many acquisitions made by Microsoft soon fail and shut down; very few are successful. – Security hlaws: Window OS is the least protected against virus attacks compared to other OS. – Mature PC and mobile markets: Microsoft only entered these sectors recently and thus, will grow revenues at a slower rate than its competitors. – Slow to innovate: The company spends many resources on R&D for innovative products, but for the most part has failed in this area.

Opportunities – Cloud based services: Microsoft has the resources needed to develop and expand its cloud computing system for the increasing demand. – Mobile industry: Smartphones and tablets markets are growing fast, Microsoft can utilize this opportunity to develop its devices and mobile OS. – Acquisitions: With a huge amount of cash, the company can invest and acquire startups to grow bigger.

Threats – Intense competition: Microsoft is facing many competitors such as Google and Apple in both PC and mobile OS. – Change in customers habits: Customers are shifting to mobile markets, in which Microsoft just enters recently. – Lawsuits: Microsoft has been sued and lost in some large cases, which are expensive. If the company does not come up with solutions in a timely manner, there will be more to come.

PART 2: BUSINESS MODEL


Revenue Drivers

Microsoft’s revenue is increasing and reaches $86.8 billion in FY 2014. Commercial Licensing accounts for the largest proportion, which accounts for 48.2%; followed by D&C Licensing (21.6%), D&C Computing and Gaming hardware (11%), Commercial other (8.8%). D&C – Phone hardware segment is still new and accounts for only 2.3% of the total revenue. Expense Drivers Most of the company expenses are on Cost of Goods Sold (31%), Selling and Administrative (23.8%), and R&D (13.1%). Although revenue growth continues to increase over the past years, gross margin is gradually decreasing from 80.2% in 2010 and reaches 69% in 2014. This trend is the same for profitability ratios.

PART 3: RECENT FINANCIAL PERFORMANCE ANALYSIS


RECENT FINANCIAL PERFORMANCE ANALYSIS

• Microsoft’s growth rates over the last ten years have fluctuated tremendously. The last five years have not seen a great change either, and it is due to new products and the emphasis that the company puts in the particular sales. An example would be the sales of their Surface tablets, which sales have had an increase of 24% to hit $1.1B in the most recent quarter while PC sales have declined.

• Although revenues have increased,

even with the constantly changing growth rates over the last several years, their gross profit has steadily decreased for the past five years and the likelihood of that trend continuing is high because their costs continue to rise with new developments more than their revenues.

• Microsoft’s acquirement of Nokia’s

Cellphone division was a $243M expense. They will attempt to have a greater impact in the development as their Windows phones have drastically lagged the competition from Samsung, Apple, and other cellphone giants. These higher initial costs cause Microsoft’s profit to decline year over year.

• Long Term debt has more than

quadrupled from 2010 to 2014. In 2014 alone there was a 63.84% increase from the year before. This could be because Microsoft is taking advantage of low interest rates to become more leveraged. They could also be trying to reach their optimal capital structure by doing so.

-‐5%

0%

5%

10%

15%

20%

25%

2004 2006 2008 2010 2012 2014 2016

Growth Over Prior Year

68.00%

70.00%

72.00%

74.00%

76.00%

78.00%

80.00%

82.00%

2009 2010 2011 2012 2013 2014 2015

Gross ProRit

0

5000

10000

15000

20000

25000

2009 2010 2011 2012 2013 2014 2015

Long Term Debt

PART 4: PEER GROUP ANALYSIS


PEER GROUP ANALYSIS Comparative Data Microsoft started out with software and is still the leading OS and software provider. Microsoft is extremely popular for its Microsoft Office products and doesn’t seem to have any big competitors, besides possibly Google Docs. Once Microsoft further develops its cloud computing system, it will be in a better position. What differentiates Microsoft is that its products are simple and easy to use. Together with its long history of Commercial Licensing, D&C Licensing, and D&C Computing and Gaming hardware, the company has successfully built up its brand loyalty and reputation. Porter’s Five Forces

Industry Rivalry: Moderate

Threat of entrants: Low Microsoft has the majority share of operating systems now and it can take years and many resources for an

entrant to build a successful OS.

Bargaining power of Buyers:

Moderate In the PC

segment, the power is low. However, in the game and mobile segments, the power is

relatively high. Threat of substitute: Moderate Threat of

substiture for Windows is low; threat of substitute for the gaming segment is high with two potential players Sony and

Nintendo.

Bargaining power of

Suppliers: Low Resoucres that Microsoft needs are available from a large

number of hirms.

PART 4: PEER GROUP ANALYSIS


Ratio Analysis Competitors in:

• Operating systems: Oracle • Internet services: Google • Entertainment and devices: Sony

• Microsoft’s total asset turnover (0.6) is somewhat higher than the industry average, indicating that its ability to manage assets is rather effective. This is also similar to the situation of return on assets ratio

• The company’s liquidity is in a good shape, with the current ratio not too low and not too high; total debt/equity is 25.9%, lower than Oracle (51%) and Sony (34.1%).

• Profit margin has been decreasing over the past five years and was 4% in 2014. Compared to Google and Sony, the growth is rather slow. This indicates negative trends in the company’s earnings such as bad acquisitions and investments.

10.9

0.4 3.3

51

3.2

8.7

0.5 4.8

7.7

21.4

0.6 0.5 0.9

34.1

20

11.1

0.6 2.5

25.9

4

Prohitability -‐ Return on Assets %

Total Asset Turnover

S-‐T Liquidity -‐ Current Ratio

L-‐T Liquidity -‐ Total Debt/Equity (%)

Growth -‐ Gross Prohit (%)

Peer Analysis (2014) Oracle Google Sony Microsoft

PART 5: FUTURE PERFORMANCE ANALYSIS


FUTURE PERFORMANCE ANALYSIS List of Assumptions

Profit margin from 2014 will be maintained for the next 5 years Interest will be paid at same rate as 2014 for the next 5 years EBIT margin will be kept for next 5 years Effective tax rate for Microsoft will be kept at 21.03% Dividend payout will remain at 40.22% for 5 years SG&A and R&D will grow at the percentage of sales from 2014 for 5 years All other non-‐operating items will grow at the percentage of sales from 2014 for 5

years Short Term Investments will grow at same rate from 2014 Accounts Receivables/Sales ratio will be used for the next 5 years Inventory and other CA/Sales ratio will be used for the next 5 years Gross fixed assets will be kept at same rate for next 5 years Quick ratio will be used for the next 5 years Debt/Equity ratio will be used for the next 5 years

Projecting Financial Statements

Microsoft growth rate has been fluctuating between 5.4% and 12% for the past five years, leaving the average growth rate at 8.26%. Having these various growth rates, we used the average of 8.26% for 2015 and lowered it to 4.99% for 2016 due to past trends. After that, growth rate will increase and decrease for 2017, 2018, and 2019 to 6.65%, 4.53%, and 5.06% respectively. Every line item on Microsoft’s financials have fluctuated at different rates just like the sales growth for the past five years due to changing ideas and products introduced. However, with respect to the forecast, line items were increased using the percent of sales method.

PART 6: WEIGHTED AVERAGE COST OF CAPITAL ANALYSIS


WEIGHTED AVERAGE COST OF CAPITAL ANALYSIS Weighted Average Cost of Capital Formula

𝑊𝐴𝐶𝐶 = 𝑟!× 1− 𝑇! ×𝐷𝑉 + 𝑟!×

𝐸𝑉

Where: • rD = cost of debt • TC = corporate tax rate • E = market value of the firm’s equity • D = market value of the firm’s debt • V = E + D • D/V = percentage of financing that is debt • rE = cost of equity • E/V = percentage of financing that is equity

MSFT WACC Calculation Effective Tax Rate Tc = 21.03% Market Value of Firm’s Equity (In Millions) Market Capitalization is used for common equity weighting: Market Cap = 340,703.2 Market Value of Firm’s Debt (In Millions) 2013 2014 Short Term Debt 2,999 2,000 Long Term Debt 12,601 20,645 Average Short Term Debt = (2,999 + 2,000)/2 = 2499.5 Average Long Term Debt = (12,601 + 20,645)/2 = 16,623.0 Total Book Value of Debt = 16,623 + 2499.5 = 19,122.5 Weight of Equity and Weight of Debt E/V = 340,703.2/(340,703.2 + 19,122.5) = 0.947 D/V = 19,122.5/(340,703.2 + 19,122.5) = 0.053 Cost of Equity Capital Asset Pricing Model (CAPM) Formula: Cost of Equity = Risk Free Rate + Beta * (Expected Return on Market – Risk Free Rate) Risk Free Rate: 1.92% Beta: 1.08 Expected Return on Market: 10% rE = 1.92% + 1.08 * (10% – 1.92%) = 10.65%



Cost of Debt 2014 Interest Expense: 597.0 Total Book Value of Debt: 19,122.5 rD = 597.0/19,122.5 = 3.12% MSFT WACC

𝑊𝐴𝐶𝐶 = 𝑟!× 1− 𝑇! ×𝐷𝑉 + 𝑟!×

𝐸𝑉

𝑊𝐴𝐶𝐶 = 3.12%× 1− 21.03% × 0.053 + 10.65%× 0.947 = 10.21% WACC Comparison

Microsoft’s WACC is well among its competitors. Therefore, its ability to accept or reject a new project will likely be in the same league with the industry average.

Google Microsoft Apple Oracle WACC 9.90% 10.21% 10.08% 11.88%

Capital Structure Analysis

Google Microsoft Apple Oracle Total Common

Equity 92.90% 79.50% 76% 65.50%

Total Debt 7.10% 20.50% 24% 33.80% Total Minority

Interest 0.80%

0.00%

5.00%

10.00%

15.00%

20.00%

Google Apple Microsoft Oracle

WACC

WACC



Within the group of competitors, Google and Microsoft have the lowest percentage

of debt in the capital structure (7.10% and 20.5% respectively). Keeping the percentage of debt low means that the firm is paying a lot of attention to keeping financing activities under control. It also shows that the firm is not making the best out of its capital power. The weight of debt (20.5%) is way under the optimal capital structure of 30% debt, and thus makes MSFT’s capital structure rely a lot on equity. To be specific, a change in stock market price will most likely make the capital fluctuate more than it should do for other competitors.

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Google Microsoft Apple Oracle

Total Minority Interest

Total Debt

Total Common Equity

PART 7: COMMON SHARES VALUATION


COMMON SHARES VALUATION Free Cash Flow to Equity Fiscal Year 2010 2011 2012 2013 2014 Net Income $18,760.00 $23,150.00 $16,978.00 $21,863.00 $22,074.00 Depreciation and Amortization $2,507.00 $2,537.00 $2,758.00 $3,339.00 $4,245.00 Cap Ex $1,977.00 $2,355.00 $2,305.00 $4,257.00 $5,485.00 NWC (Current Year) $29,529.00 $46,144.00 $52,396.00 $64,049.00 $68,621.00 NWC (Previous Year) $22,246.00 $29,529.00 $46,144.00 $52,396.00 $64,049.00 Change In NWC $7,283.00 $16,615.00 $6,252.00 $11,653.00 $4,572.00 Net Debt (Current) $30,405.00 $38,233.00 $49,269.00 $59,924.00 $61,726.00 Net Debt (Previous) $22,335.00 $30,405.00 $38,233.00 $49,269.00 $59,924.00 Change In Net Debt $8,070.00 $7,828.00 $11,036.00 $10,655.00 $1,802.00 FCFE $20,077.00 $14,545.00 $22,215.00 $19,947.00 $18,064.00 # Of Shares Outstanding 8,668 8376 8381 8328 8239 FCFE Per Share: 2.316 1.737 2.651 2.395 2.192 Discounted Cash Flow

Free Cash Flow To Equity Cost Of Capital 10.21%

Year Growth Rate FCFE Terminal Price Cash Flow 2014 2.192499 2.192499 2015 8.26% 2.373599515 2.373600 2016 5% 2.49227949 2.492279 2017 6.65% 2.658016076 2.658016 2018 5% 2.778424205 2.778424 2019 5.06% 2.919012469 45.02500605 2.919012 2020 3.50% 3.021177906

Vcs $36.07 FCFE



Dividend Discount Model 2014

Dividends Paid (Millions) $8,879.00 Shares Outstanding

(Millions) 8239 Dividend Per Share $1.08 Required Return 10.21%

Year Growth Dividend

Terminal Price Cash Flow

2014 1.08 1.08 2015 8.26% 1.169208 1.169208 2016 4.99% 1.227551479 1.227551479 2017 6.65% 1.309183653 1.309183653 2018 4.53% 1.368489672 1.368489672 2019 5.06% 1.437735249 22.17669125 23.6144265 2020 3.50% 1.488055983

Vcs $17.77 DDM Discounted Cash Flow

Cost Of Capital 10.21%

Year 2014 2015 2016 2017 2018 2019 EBIT $28,586.00 $30,189.00 $31,696.00 $33,772.00 $35,302.00 $37,088.00 Less Tax $(5,746.00) $(6,348.75) $(6,665.67) $(7,102.25) $(7,424.01) $(7,799.61) NOPAT $22,840.00 $23,840.25 $25,030.33 $26,669.75 $27,877.99 $29,288.39 NOWC $68,621.00 $74,289.00 $77,996.00 $83,105.00 $86,870.00 $91,265.00 TNOWC $81,632.00 $88,375.00 $92,785.00 $98,862.00 $103,341.00 $108,569.00 NIOC $(7,592.00) $(6,743.00) $(4,410.00) $(6,077.00) $(4,479.00) $(5,228.00) FCF $15,248.00 $17,097.25 $20,620.33 $20,592.75 $23,398.99 $24,060.39 NWC (2013) $64,049.00 NFA (2013) $9,991.00

$10.33 FCF

TOWC (2013) $74,040.00 ROIC 27.98% EVA $14,505.37 $23,840.25 $25,030.33 $26,669.75 $27,877.99 $29,288.39



Intrinsic Value Valuation Method Intrinsic Value Calculation Weight FCFE $36.07 70% DDM $17.77 20% FCF $10.33 10% Target Price $29.84 Price Earnings Ratio

Market Comparison P/E (TTM)

P/E (Forward 12 Months) PEG

1 Year EPS Growth

5 Year EPS Growth

Microsoft Corp 16.8 15.9 2.3 1.82% 10.17% Software & IT Services Industry 74.8 4.7 5.9 13.00% 22.25% Technology Sector 50.4 11.8 4.1 35.29% 24.13% S&P 500 19.7 17.7 4.1 2.34% 15.98% Microsoft's PE ratio is one of the lowest of any stock in the Software & IT Services industry. This could mean that investors have not been willing to pay a premium for the company's business prospects. During the past year, earnings growth has lagged behind its historical five-‐year growth rate, most likely due to decreasing margins.

PART 8: CONCLUSION AND RECOMMENDATION


CONCLUSION AND RECOMMENDATION FCFE, FCF, and DDM models, weighted at 70%, 20%, and 10% respectively, are utilized to estimate the intrinsic value of Microsoft’s stock price. Because of heavy fluctuation in the growth of free cash flow, FCF cannot be relied on, and thus was weighted at 10%. In addition, DDM was only weighted at 20% because the dividend growth rate fluctuates, and at some periods, the growth rate was greater than the cost of capital. All of these reasons make DDM become unstable overtime. FCFE is chosen to be the best method to valuate MSFT because it is more relevant to the company. Hence, most of the weight is assigned to FCFE.

Valuation Method Intrinsic Value Calculation Weight FCFE $36.07 70% DDM $17.77 20% FCF $10.33 10% Estimated Price $29.84

MSFT stock is now priced at $41.42. The intrinsic price is estimated at $29.84. Therefore, we conclude that MSFT is overpriced and is expected to come down. We recommend that owners of MSFT stock sell.

70%

20%

10%

Weight

FCFE

DDM

FCF

PART 9: TABLES AND SPREADSHEETS


TABLES AND SPREADSHEETS Historical Financial Statements

Income Statement

For$the$Fiscal$Period$EndingReclassified12$months

Jun9309201012$months




Jun93092014Currency USD USD USD USD USD$Revenue &&&&&&62,484.0& &&&&&&69,943.0& &&&&&&73,723.0& &&&&&&77,849.0& &&&&&&86,833.0&Other&Revenue 5 5 5 5 5$$Total$Revenue $$$$$62,484.0$ $$$$$69,943.0$ $$$$$73,723.0$ $$$$$77,849.0$ $$$$$86,833.0$

Cost&Of&Goods&Sold &&&&&&12,395.0& &&&&&&15,577.0& &&&&&&17,530.0& &&&&&&20,249.0& &&&&&&26,934.0&$$Gross$Profit $$$$$50,089.0$ $$$$$54,366.0$ $$$$$56,193.0$ $$$$$57,600.0$ $$$$$59,899.0$

Selling&General&&&Admin&Exp. &&&&&&17,277.0& &&&&&&18,162.0& &&&&&&18,426.0& &&&&&&19,692.0& &&&&&&20,632.0&R&&&D&Exp. &&&&&&&&8,714.0& &&&&&&&&9,043.0& &&&&&&&&9,811.0& &&&&&&10,411.0& &&&&&&11,381.0&Depreciation&&&Amort. 5 5 5 5 5Other&Operating&Expense/(Income) 5 5 5 5 5

$$Other$Operating$Exp.,$Total $$$$$25,991.0$ $$$$$27,205.0$ $$$$$28,237.0$ $$$$$30,103.0$ $$$$$32,013.0$

$$Operating$Income $$$$$24,098.0$ $$$$$27,161.0$ $$$$$27,956.0$ $$$$$27,497.0$ $$$$$27,886.0$

Interest&Expense &&&&&&&(151.0)&& &&&&&&&(295.0)&& &&&&&&&(380.0)&& &&&&&&&(429.0)&& &&&&&&&(597.0)&&Interest&and&Invest.&Income &&&&&&&&&&&843.0& &&&&&&&&&&&900.0& &&&&&&&&&&&800.0& &&&&&&&&&&&677.0& &&&&&&&&&&&883.0&$$Net$Interest$Exp. $$$$$$$$$$$692.0$ $$$$$$$$$$$605.0$ $$$$$$$$$$$420.0$ $$$$$$$$$$$248.0$ $$$$$$$$$$$286.0$

Currency&Exchange&Gains&(Loss) &&&&&&&&&&(64.0)&& &&&&&&&(336.0)&& &&&&&&&(465.0)&& &&&&&&&(223.0)&& &&&&&&&(490.0)&&Other&Non5Operating&Inc.&(Exp.) &&&&&&&&&&(73.0)&& &&&&&&&&&&&167.0& &&&&&&&&&&&&&70.0& &&&&&&&&&&&131.0& &&&&&&&&&&(99.0)&&$$EBT$Excl.$Unusual$Items $$$$$24,653.0$ $$$$$27,597.0$ $$$$$27,981.0$ $$$$$27,653.0$ $$$$$27,583.0$

Restructuring&Charges 5 5 5 5 5Merger&&&Related&Restruct.&Charges 5 5 5 5 &&&&&&&(127.0)&&Impairment&of&Goodwill 5 5 &&&&(6,193.0)&& 5 5Gain&(Loss)&On&Sale&Of&Invest. &&&&&&&&&&&360.0& &&&&&&&&&&&474.0& &&&&&&&&&&&479.0& &&&&&&&&&&&132.0& &&&&&&&&&&&364.0&Legal&Settlements 5 5 5 &&&&&&&(733.0)&& 5Other&Unusual&Items 5 5 5 5 5$$EBT$Incl.$Unusual$Items $$$$$25,013.0$ $$$$$28,071.0$ $$$$$22,267.0$ $$$$$27,052.0$ $$$$$27,820.0$

Income&Tax&Expense &&&&&&&&6,253.0& &&&&&&&&4,921.0& &&&&&&&&5,289.0& &&&&&&&&5,189.0& &&&&&&&&5,746.0&$$Earnings$from$Cont.$Ops. $$$$$18,760.0$ $$$$$23,150.0$ $$$$$16,978.0$ $$$$$21,863.0$ $$$$$22,074.0$

Earnings&of&Discontinued&Ops. 5 5 5 5 5Extraord.&Item&&&Account.&Change 5 5 5 5 5$$Net$Income$to$Company $$$$$18,760.0$ $$$$$23,150.0$ $$$$$16,978.0$ $$$$$21,863.0$ $$$$$22,074.0$

Minority&Int.&in&Earnings 5 5 5 5 5$$Net$Income $$$$$18,760.0$ $$$$$23,150.0$ $$$$$16,978.0$ $$$$$21,863.0$ $$$$$22,074.0$

Pref.&Dividends&and&Other&Adj. 5 5 5 5 5

$$NI$to$Common$Incl$Extra$Items $$$$$18,760.0$ $$$$$23,150.0$ $$$$$16,978.0$ $$$$$21,863.0$ $$$$$22,074.0$

Payout&Ratio&% &24.4%& &22.4%& &37.6%& &34.1%& &40.2%&



Balance'SheetBalance'Sheet'as'of:

Jun13012010 Jun13012011 Jun13012012 Jun13012013 Jun13012014Currency USD USD USD USD USDASSETSCash%And%Equivalents %%%%%%%%%%%%5,505.0% %%%%%%%%%%%%9,610.0% %%%%%%%%%%%%6,938.0% %%%%%%%%%%%%3,804.0% %%%%%%%%%%%%8,669.0%Short%Term%Investments %%%%%%%%%%31,042.0% %%%%%%%%%%41,761.0% %%%%%%%%%%55,096.0% %%%%%%%%%%72,392.0% %%%%%%%%%%76,255.0%Trading%Asset%Securities %%%%%%%%%%%%%%%%%%12.0% E %%%%%%%%%%%%%%%%%%10.0% %%%%%%%%%%%%%%%%%%18.0% %%%%%%%%%%%%%%%%%%17.0%''Total'Cash'&'ST'Investments ''''''''''36,559.0' ''''''''''51,371.0' ''''''''''62,044.0' ''''''''''76,214.0' ''''''''''84,941.0'

Accounts%Receivable %%%%%%%%%%13,014.0% %%%%%%%%%%14,987.0% %%%%%%%%%%15,780.0% %%%%%%%%%%17,486.0% %%%%%%%%%%19,544.0%''Total'Receivables ''''''''''13,014.0' ''''''''''14,987.0' ''''''''''15,780.0' ''''''''''17,486.0' ''''''''''19,544.0'

Inventory %%%%%%%%%%%%%%%%740.0% %%%%%%%%%%%%1,372.0% %%%%%%%%%%%%1,137.0% %%%%%%%%%%%%1,938.0% %%%%%%%%%%%%2,660.0%Deferred%Tax%Assets,%Curr. %%%%%%%%%%%%2,184.0% %%%%%%%%%%%%2,467.0% %%%%%%%%%%%%2,035.0% %%%%%%%%%%%%1,632.0% %%%%%%%%%%%%1,941.0%Other%Current%Assets %%%%%%%%%%%%3,179.0% %%%%%%%%%%%%4,721.0% %%%%%%%%%%%%4,088.0% %%%%%%%%%%%%4,196.0% %%%%%%%%%%%%5,160.0%''Total'Current'Assets ''''''''''55,676.0' ''''''''''74,918.0' ''''''''''85,084.0' ''''''''101,466.0' ''''''''114,246.0'

Gross%Property,%Plant%&%Equipment %%%%%%%%%%16,259.0% %%%%%%%%%%17,991.0% %%%%%%%%%%19,231.0% %%%%%%%%%%22,504.0% %%%%%%%%%%27,804.0%Accumulated%Depreciation %%%%%%%%%(8,629.0)%% %%%%%%%%(9,829.0)%% %%%%%%(10,962.0)%% %%%%%%(12,513.0)%% %%%%%%(14,793.0)%%''Net'Property,'Plant'&'Equipment ''''''''''''7,630.0' ''''''''''''8,162.0' ''''''''''''8,269.0' ''''''''''''9,991.0' ''''''''''13,011.0'

LongEterm%Investments %%%%%%%%%%%%7,754.0% %%%%%%%%%%10,865.0% %%%%%%%%%%%%9,776.0% %%%%%%%%%%10,844.0% %%%%%%%%%%14,597.0%Goodwill %%%%%%%%%%12,394.0% %%%%%%%%%%12,581.0% %%%%%%%%%%13,452.0% %%%%%%%%%%14,655.0% %%%%%%%%%%20,127.0%Other%Intangibles %%%%%%%%%%%%1,158.0% %%%%%%%%%%%%%%%744.0% %%%%%%%%%%%%3,170.0% %%%%%%%%%%%%3,083.0% %%%%%%%%%%%%6,981.0%Other%LongETerm%Assets %%%%%%%%%%%%1,501.0% %%%%%%%%%%%%1,434.0% %%%%%%%%%%%%1,520.0% %%%%%%%%%%%%2,392.0% %%%%%%%%%%%%3,422.0%Total'Assets ''''''''''86,113.0' '''''''108,704.0' ''''''''121,271.0' ''''''''142,431.0' ''''''''172,384.0'

LIABILITIESAccounts%Payable %%%%%%%%%%%%4,025.0% %%%%%%%%%%%%4,197.0% %%%%%%%%%%%%4,175.0% %%%%%%%%%%%%4,828.0% %%%%%%%%%%%%7,432.0%Accrued%Exp. %%%%%%%%%%%%3,283.0% %%%%%%%%%%%%3,575.0% %%%%%%%%%%%%3,875.0% %%%%%%%%%%%%4,117.0% %%%%%%%%%%%%4,797.0%ShortEterm%Borrowings %%%%%%%%%%%%1,182.0% %%%%%%%%%%%%1,208.0% %%%%%%%%%%%%%%%%814.0% %%%%%%%%%%%%%%%%645.0% %%%%%%%%%%%%2,558.0%Curr.%Port.%of%LT%Debt %%%%%%%%%%%%%%%%%%33.0% %%%%%%%%%%%%%%%%%%%%9.0% %%%%%%%%%%%%1,248.0% %%%%%%%%%%%%3,044.0% %%%%%%%%%%%%%%%%%%12.0%Curr.%Income%Taxes%Payable %%%%%%%%%%%%1,074.0% %%%%%%%%%%%%%%%580.0% %%%%%%%%%%%%%%%%789.0% %%%%%%%%%%%%%%%%592.0% %%%%%%%%%%%%%%%%782.0%Unearned%Revenue,%Current %%%%%%%%%%13,652.0% %%%%%%%%%%15,722.0% %%%%%%%%%%18,653.0% %%%%%%%%%%20,639.0% %%%%%%%%%%23,150.0%Def.%Tax%Liability,%Curr. E E E E %%%%%%%%%%%%%%%%125.0%Other%Current%Liabilities %%%%%%%%%%%%2,898.0% %%%%%%%%%%%%3,483.0% %%%%%%%%%%%%3,134.0% %%%%%%%%%%%%3,552.0% %%%%%%%%%%%%6,769.0%''Total'Current'Liabilities ''''''''''26,147.0' ''''''''''28,774.0' ''''''''''32,688.0' ''''''''''37,417.0' ''''''''''45,625.0'

LongETerm%Debt %%%%%%%%%%%%4,939.0% %%%%%%%%%%11,921.0% %%%%%%%%%%10,713.0% %%%%%%%%%%12,601.0% %%%%%%%%%%20,645.0%Unearned%Revenue,%NonECurrent %%%%%%%%%%%%1,178.0% %%%%%%%%%%%%1,398.0% %%%%%%%%%%%%1,406.0% %%%%%%%%%%%%1,760.0% %%%%%%%%%%%%2,008.0%Def.%Tax%Liability,%NonECurr. %%%%%%%%%%%%%%%%229.0% %%%%%%%%%%%%1,456.0% %%%%%%%%%%%%1,893.0% %%%%%%%%%%%%1,709.0% %%%%%%%%%%%%2,728.0%Other%NonECurrent%Liabilities %%%%%%%%%%%%7,445.0% %%%%%%%%%%%%8,072.0% %%%%%%%%%%%%8,208.0% %%%%%%%%%%10,000.0% %%%%%%%%%%11,594.0%Total'Liabilities ''''''''''39,938.0' ''''''''''51,621.0' ''''''''''54,908.0' ''''''''''63,487.0' ''''''''''82,600.0'

Common%Stock %%%%%%%%%%62,856.0% %%%%%%%%%%63,415.0% %%%%%%%%%%65,797.0% %%%%%%%%%%67,306.0% %%%%%%%%%%68,366.0%Additional%Paid%In%Capital E E E E ERetained%Earnings %%%%%%(17,736.0)%% %%%%%%%%(8,195.0)%% %%%%%%%%%%%%(856.0)%% %%%%%%%%%%%%9,895.0% %%%%%%%%%%17,710.0%Treasury%Stock E E E E EComprehensive%Inc.%and%Other %%%%%%%%%%%%1,055.0% %%%%%%%%%%%%1,863.0% %%%%%%%%%%%%1,422.0% %%%%%%%%%%%%1,743.0% %%%%%%%%%%%%3,708.0%''Total'Common'Equity ''''''''''46,175.0' ''''''''''57,083.0' ''''''''''66,363.0' ''''''''''78,944.0' ''''''''''89,784.0'

Total'Equity ''''''''''46,175.0' ''''''''''57,083.0' ''''''''''66,363.0' ''''''''''78,944.0' ''''''''''89,784.0'

Total'Liabilities'And'Equity ''''''''''86,113.0' '''''''108,704.0' ''''''''121,271.0' ''''''''142,431.0' ''''''''172,384.0'



Cash%FlowFor%the%Fiscal%Period%Ending 12%months

Jun9309201012%months




Jun93092014Currency USD USD USD USD USD%Net%Income %%%%%%%%18,760.0% %%%%%%%%23,150.0% %%%%%%%%16,978.0% %%%%%%%%21,863.0% %%%%%%%%22,074.0%Depreciation+&+Amort. ++++++++++1,800.0+ ++++++++++2,000.0+ ++++++++++2,200.0+ ++++++++++2,600.0+ ++++++++++3,400.0+Amort.+of+Goodwill+and+Intangibles ++++++++++++++707.0+ ++++++++++++++537.0+ ++++++++++++++558.0+ ++++++++++++++739.0+ ++++++++++++++845.0+Depreciation%&%Amort.,%Total %%%%%%%%%%2,507.0% %%%%%%%%%%2,537.0% %%%%%%%%%%2,758.0% %%%%%%%%%%3,339.0% %%%%%%%%%%4,245.0%

Other+Amortization ++++++++++++++++97.0+ ++++++++++++++114.0+ ++++++++++++++117.0+ ++++++++++++++210.0+ ++++++++++++++200.0+(Gain)+Loss+On+Sale+Of+Invest. ++++++++++(208.0)++ ++++++++++(362.0)++ ++++++++++(200.0)++ ++++++++++++++++80.0+ ++++++++++(109.0)++Asset+Writedown+&+Restructuring+Costs P P ++++++++++6,193.0+ P PStockPBased+Compensation ++++++++++1,891.0+ ++++++++++2,166.0+ ++++++++++2,244.0+ ++++++++++2,406.0+ ++++++++++2,446.0+Tax+Benefit+from+Stock+Options ++++++++++++(45.0)++ ++++++++++++(17.0)++ ++++++++++++(93.0)++ ++++++++++(209.0)++ ++++++++++(271.0)++Other+Operating+Activities ++++++++++++++410.0+ ++++++++++2,409.0+ ++++++++++3,803.0+ ++++++++++2,519.0+ ++++++++++3,022.0+Change+in+Acc.+Receivable +++++++(2,238.0)++ +++++++(1,451.0)++ +++++++(1,156.0)++ +++++++(1,807.0)++ +++++++(1,120.0)++Change+In+Inventories ++++++++++++(44.0)++ ++++++++++(561.0)++ ++++++++++++++184.0+ ++++++++++(802.0)++ ++++++++++(161.0)++Change+in+Acc.+Payable ++++++++++++++844.0+ ++++++++++++++++58.0+ ++++++++++++(31.0)++ ++++++++++++++537.0+ ++++++++++++++473.0+Change+in+Other+Net+Operating+Assets ++++++++++2,099.0+ +++++++(1,049.0)++ ++++++++++++++829.0+ ++++++++++++++697.0+ ++++++++++1,432.0+%%Cash%from%Ops. %%%%%%%%24,073.0% %%%%%%%%26,994.0% %%%%%%%%31,626.0% %%%%%%%%28,833.0% %%%%%%%%32,231.0%

Capital+Expenditure +++++++(1,977.0)++ +++++++(2,355.0)++ +++++++(2,305.0)++ +++++++(4,257.0)++ +++++++(5,485.0)++Cash+Acquisitions ++++++++++(245.0)++ ++++++++++++(71.0)++ ++++(10,112.0)++ +++++++(1,584.0)++ +++++++(5,937.0)++Divestitures P P P P PInvest.+in+Marketable+&+Equity+Securt. +++++++(7,590.0)++ ++++(13,216.0)++ ++++(11,975.0)++ ++++(17,802.0)++ +++++++(7,324.0)++Net+(Inc.)+Dec.+in+Loans+Originated/Sold P P P P POther+Investing+Activities +++++++(1,502.0)++ ++++++++++1,026.0+ ++++++++++(394.0)++ ++++++++++(168.0)++ ++++++++++++(87.0)++%%Cash%from%Investing %%%%(11,314.0)%% %%%%(14,616.0)%% %%%%(24,786.0)%% %%%%(23,811.0)%% %%%%(18,833.0)%%

Short+Term+Debt+Issued P P P P ++++++++++++++500.0+LongPTerm+Debt+Issued ++++++++++4,167.0+ ++++++++++6,960.0+ P ++++++++++4,883.0+ ++++++++10,350.0+Total%Debt%Issued %%%%%%%%%%4,167.0% %%%%%%%%%%6,960.0% 9 %%%%%%%%%%4,883.0% %%%%%%%%10,850.0%Short+Term+Debt+Repaid ++++++++++(991.0)++ ++++++++++(186.0)++ P P PLongPTerm+Debt+Repaid +++++++(2,986.0)++ ++++++++++(814.0)++ P +++++++(1,346.0)++ +++++++(3,888.0)++Total%Debt%Repaid %%%%%%(3,977.0)%% %%%%%%(1,000.0)%% 9 %%%%%%(1,346.0)%% %%%%%%(3,888.0)%%

Issuance+of+Common+Stock ++++++++++2,311.0+ ++++++++++2,422.0+ ++++++++++1,913.0+ ++++++++++++++931.0+ ++++++++++++++607.0+Repurchase+of+Common+Stock ++++(11,269.0)++ ++++(11,555.0)++ +++++++(5,029.0)++ +++++++(5,360.0)++ +++++++(7,316.0)++

Common+Dividends+Paid +++++++(4,578.0)++ +++++++(5,180.0)++ +++++++(6,385.0)++ +++++++(7,455.0)++ +++++++(8,879.0)++Total%Dividends%Paid %%%%%%(4,578.0)%% %%%%%%(5,180.0)%% %%%%%%(6,385.0)%% %%%%%%(7,455.0)%% %%%%%%(8,879.0)%%

Special+Dividend+Paid P P P P POther+Financing+Activities ++++++++++++++++55.0+ ++++++++++++(23.0)++ ++++++++++++++++93.0+ ++++++++++++++199.0+ ++++++++++++++232.0+%%Cash%from%Financing %%%%(13,291.0)%% %%%%%%(8,376.0)%% %%%%%%(9,408.0)%% %%%%%%(8,148.0)%% %%%%%%(8,394.0)%%

Foreign+Exchange+Rate+Adj. ++++++++++++(39.0)++ ++++++++++++++103.0+ ++++++++++(104.0)++ +++++++++++++++(8.0)++ ++++++++++(139.0)++%%Net%Change%in%Cash %%%%%%%%%%(571.0)%% %%%%%%%%%%4,105.0% %%%%%%(2,672.0)%% %%%%%%(3,134.0)%% %%%%%%%%%%4,865.0%



Forecast of Future Financial Statements

Microsoft)Co

rporation)MSFT

8.26%

4.99%

6.65%

4.53%

5.06%

(In.M

illions)

1.0826

1.0499

1.06550

1.0453

1.0506

Income'Statem

ent

2014

2015

2016

2017

2018

2019

Sales/Re

venu

e86,833

94,005

98696

105161

109925

115487

COGS

26,934

29,159

30,614

32,619

34,097

35,822

Gross'P

rofit

59,899

64,847

68,083

72,542

75,828

79,665

SG&A

20,632

22,336

23,451

24,987

26,119

27,440

R&D

11,381

12,321

12,936

13,783

14,408

15,137

Other.Ope

ratin

g.To

tal

32,013

34,657

36,387

38,770

40,526

42,577

Ope

ratin

g'Income

27,886

30,189

31,696

33,772

35,302

37,088

Interest.Expen

se(597

)(646

)(679

)(723

)(756

)(794

)Interest.and

.Invest..Incom

e883

956

1,004

1,069

1,118

1,174

Net'In

terest'Expen

se286

310

325

346

362

380

Curren

cy.Exchange.Ga

ins(Loss)

(490

)(530

)(557

)(593

)(620

)(652

)Other.Non

ROpe

ratin

g.Inc..(E

xp)

(99)

(107

)(113

)(120

)(125

)(132

)EB

T'Excl.'U

nusual'Item

s27,583

29,861

31,351

33,405

34,918

36,685

Merger.&

.Related

.Restruct..Ch

arges

(127

)R

RR

RR

Gain(Loss).on.Sale.of.Invest.

364

394

414

441

461

484

EBT'Inclu.'Unu

sual'Item

s27,820

30,255

31,765

33,846

35,379

37,169

Income.Tax.Expe

nse

5746

6,363

6,680

7,118

7,440

7,817

Earnings'from

'Con

t.'Ops.

22,074

23,893

25,085

26,728

27,939

29,352

Net'In

come'to'Com

pany

22,074

23,893

25,085

26,728

27,939

29,352



Microsoft)Corpo

ratio

n)MSFT

In#M

illions

Balance'Sheet

2014

2015

2016

2017

2018

2019

Assets

Cash#&#Equ

ivalen

ts8,669

9,385

9,853

10,499

10,974

11,530

Short#T

erm#Investmen

ts76,272

82,572

86,692

92,371

96,555

101,441

Total'Cash&

'ST'Investmen

ts84,941

91,957

96,546

102,870

107,530

112,971

Accoun

ts#Receivables

19,544

21,158

22,214

23,669

24,741

25,993

Total'R

eceivables

19,544

21,158

22,214

23,669

24,741

25,993

Inventory

2,660

2,880

3,023

3,221

3,367

3,538

Other#Current#Assets

7,101

7,688

8,071

8,600

8,989

9,444

Total'Current'Assets

114,246

123,683

129,854

138,360

144,628

151,946

Gross#Prope

rty,#Plant#&#Equ

ipmen

t27,804

30,101

31,603

33,673

35,198

36,979

Accumulated

#Dep

reciation

(14,79

3)(16,01

5)(16,81

4)(17,91

5)(18,72

7)(19,67

5)Net'PP&

E13,011

14,086

14,789

15,757

16,471

17,304

LongQterm#Investmen

ts14,597

15,803

16,591

17,678

18,479

19,414

Goo

dwill

20,127

21,789

22,877

24,375

25,479

26,769

Other#Intangibles

6,981

7,558

7,935

8,454

8,837

9,285

Other#Lon

gQTerm

#Assets

3,422

3,705

3,890

4,144

4,332

4,551

Total'A

ssets

172,384

186,623

195,935

208,769

218,226

229,269

Liab

ilitie

sAccoun

ts#Payable

7,432

8,046

8,447

9,001

9,408

9,884

Accrue

d#Expe

nse

4,797

5,193

5,452

5,810

6,073

6,380



ShortQTerm

#Borrowings

2,558

2,769

2,907

3,098

3,238

3,402

Other#Current#Liabilities

30,838

33,385

35,051

37,347

39,039

41,014

Total'Current'Liabilities

45,625

49,394

51,858

55,255

57,758

60,681

Long#Term

#Debt

20,645

22,350

23,466

25,003

26,135

27,458

Other#NonQCurrent#Liabilities

16,330

17,679

18,561

19,777

20,673

21,719

Total'Liabilities

82,600

89,423

93,885

100,034

104,566

109,857

Common#Stock

68,366

74,013

77,706

82,796

86,547

90,926

Additional#Paid#In#Capital

QQ

QQ

QQ

Retained#Earnings

17,710

19,173

20,130

21,448

22,420

23,554

Comprehensive#Inc.#&#Other

3,708

4,014

4,215

4,491

4,694

4,932

Total'Com

mon

'Equ

ity89,784

97,200

102,050

108,735

113,660

119,412

Total'Equ

ity89,784

97,200

102,050

108,735

113,660

119,412

Total'Liabilities'&

'Equ

ity172,384

186,623

195,935

208,769

218,226

229,269



In#M

illions

Statem

ent'o

f'Cash'Flow

s2014

2015

2016

2017

2018

2019

Net#Income

22,074

23,893

25,085

26,728

27,939

29,352

Depreciatio

n2,280

1,222

799

1,101

812

948

Change#in#A/R

(2,058

)(1,614

)(1,056

)(1,455

)(1,072

)(1,252

)Ch

ange#in#Inv

(732

)(220

)(144

)(198

)(146

)(170

)Ch

ange#in#A/P

2,604

614

401

553

408

476

Change#in#Accruals

680

396

259

357

263

307

Change#in#Other#CA

(1,273

)(587

)(384

)(529

)(390

)(455

)CF'from

'Ope

ratio

ns23,575

23,704

24,962

26,558

27,814

29,206

Change#in#Gross#Fixed

#Assets

(5,300

)(2,297

)(1,502

)(2,070

)(1,525

)(1,781

)Ch

ange#in#Sho

rtNTerm#Invest.

(3,862

)(6,300

)(4,120

)(5,678

)(4,184

)(4,886

)Ch

ange#in#Lon

g#Term

#Invest.

(11,68

6)(3,727

)(2,438

)(3,360

)(2,476

)(2,891

)CF'from

'Investmen

t'(20,84

8)(12,32

4)(8,060

)(11,10

8)(8,185

)(9,557

)

Change#in#Sho

rtNTerm#Borro.

1,913

211

138

190

140

164

Change#in#Lon

gNTerm

#Deb

t8,044

1,705

1,115

1,537

1,133

1,322

Change#in#Com

mon

#Stock

1,060

5,647

3,693

5,090

3,751

4,379

Repu

rchase#Com

mon

#Stock

N(8,617

)(11,29

0)(10,87

0)(12,93

9)(13,15

1)Paym

ent#o

f#Cash#Divide

nds

(8,879

)(9,611

)(10,09

0)(10,75

1)(11,23

8)(11,80

7)CF'from

'Finan

cing'

2,138

(10,66

4)(16,43

3)(14,80

4)(19,15

3)(19,09

2)

Net#Cash#Flow

4865

716

468

646

475

557

Beg.#Cash#

3804

8,669

9,385

9,853

10,499

10,974

End#Cash#

8669

9,385

9,853

10,499

10,974

11,530



Earnings Per Share EARNINGS PER SHARE EPS

2014A $2.68 2015E $2.90

8239 shares outstanding 2016E $3.04

2017E $3.24 2018E $3.39 2019E $3.56

ASSUMPTION: Shares outstanding remains constant at 8239.

EPS $(1.00)

$1.00

$3.00

$5.00

2014A 2015E 2016E 2017E 2018E 2019E

Earnings Per Share

EPS

PART 10: BIBLIOGRAPHY


REFERENCES

Capital IQ (2014, December 31). Microsoft Financial Statements. Retrieved March 15, 2015. Jurevicius, O. (n.d.). SWOT analysis of Microsoft. Retrieved April 8, 2015, from

http://www.strategicmanagementinsight.com/swot-‐analyses/microsoft-‐swot-‐analysis.html

MICROSOFT CORP (MSFT:NASDAQ GS): Stock Quote & Company Profile. (2015, April 8).

Retrieved April 9, 2015, from http://www.bloomberg.com/research/stocks/snapshot/snapshot.asp?ticker=MSFT

Microsoft Corporation. (n.d.). Retrieved April 7, 2015, from

https://www.capitaliq.com/CIQDotNet/company.aspx?companyId=21835 Microsoft Investor Relations -‐ Risk Factors. (n.d.). Retrieved April 8, 2015, from

http://www.microsoft.com/investor/EarningsAndFinancials/Earnings/RisksAndUncertainities/FY10/Q4/RisksAndUncertainties.aspx

Mogg, T. (2015, January 26). Windows wins a few buyers! Surface and Lumia sales reach

new highs. Retrieved April 8, 2015, from http://www.digitaltrends.com/mobile/microsoft-‐surface-‐and-‐lumia-‐sales-‐break-‐records-‐but-‐profit-‐drops/

Ruddick, G. (2015, January 26). Falling Windows sales hits Microsoft profits. Retrieved

April 9, 2015, from http://www.telegraph.co.uk/technology/microsoft/11371095/Falling-‐Windows-‐sales-‐hits-‐Microsoft-‐profits.html

Documents

Thu Pham - MSFT Valuation