Benzinga has published an analysis comparing Microsoft (NASDAQ: MSFT) against other major companies in the software industry. The report evaluates the company across several financial metrics, including valuation ratios, profitability, and growth prospects.
Microsoft is described as developing and licensing consumer and enterprise software, with its operations organized into three segments: productivity and business processes, intelligence cloud, and more personal computing. The company reported an EBITDA of $55.91 billion and gross profit of $60.48 billion. Additionally, Microsoft achieved a revenue growth rate of 17.75%.
In comparison to industry peers, Microsoft's Price to Earnings (P/E) ratio of 28.42 is reported to be lower than the industry average by 0.06x. Its Price to Book (P/B) ratio of 8.56 is significantly lower than the industry average by 0.39x. However, the company's Price to Sales (P/S) ratio of 11.46 is 1.17x the industry average. Regarding Return on Equity (ROE), Microsoft recorded 8.35%, which is 3.0% below the industry average.
The analysis notes that Microsoft's EBITDA is 65.78x above the industry average, and its gross profit is 38.52x above the industry average. The company's debt-to-equity ratio is reported to be 0.13, which is described as lower than its top four peers in the sector, suggesting a stronger financial position.
