MSFT Quantitative Stock Analysis - Warren Buffett - Verity Lane Blog

Below is Validea's guru fundamental report for MICROSOFT CORP (MSFT). Of the 22 guru strategies we follow, MSFT rates highest using our Patient Investor model based on the published strategy of Warren Buffett. This strategy seeks out firms with long-term, predictable profitability and low debt that trade at reasonable valuations.

MICROSOFT CORP (MSFT) is a large-cap growth stock in the Software & Programming industry. The rating using this strategy is 86% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.

The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.

EARNINGS PREDICTABILITY: PASS

DEBT SERVICE: PASS

RETURN ON EQUITY:     PASS

RETURN ON TOTAL CAPITAL:    PASS

FREE CASH FLOW: PASS

USE OF RETAINED EARNINGS: PASS

SHARE REPURCHASE: PASS

INITIAL RATE OF RETURN: FAIL

EXPECTED RETURN: PASS

About Warren Buffett: Warren Buffett is considered by many to be the greatest investor of all time. As the chairman of Berkshire Hathaway, Buffett has consistently outperformed the S&P 500 for decades, and in the process has become one of the world's richest men. (Forbes puts his net worth at $37 billion.) Despite his fortune, Buffett is known for living a modest lifestyle, by billionaire standards. His primary residence remains the gray stucco Nebraska home he purchased for $31,500 nearly 50 years ago, according to Forbes, and his folksy Midwestern manner and penchant for simple pleasures -- a cherry Coke, a good burger, and a good book are all near the top of the list -- have been well-documented.

source: https://www.nasdaq.com/articles/msft-quantitative-stock-analysis-warren-buffett-5