+1% above 5y medianEV / revenue vs. its own five years
Board median EV / revenue10.2×five-year median 11.8× · −14%
Median Rule of 405321 of 24 above the line
Median revenue growth18%a year ago 15% · accelerating
Median SBC / revenue11%FCF margin 30% → 16% ex-SBC
Lights on0 of 3prices Oct 16, 2026 · TTM through Aug 31, 2026
Against the line
growth + FCF margin, in points
line 40score 38
growth 18 ptFCF margin 20 pt
Growth +18% plus FCF margin +20% is 38 points, 2 below the line at 40. Counting the stock as an expense: 34 points.
Where it has traded
quarter-end EV / revenue · 20 quarters · Sep 30, 2021 → Jun 30, 2026
Five-year median 11.9×, middle half 10.1–12.8×, range 8.4–13.7×. Now 12.0×: +1% above its own median, higher than 60% of those quarters.Each quarter at its own close, shares and balance sheet · the band is the 25th–75th percentile
What the cash flow really is
TTM through Jun 30, 2026 · $B
FCF 66.99B − SBC 12.40B = 54.58B ex-SBC · operating income 155.24B is the GAAP figure after SBC
Against its scale group
MSFT (blue) vs. the other Mega companies on the board (4), grey
Revenue growth+18% vs. +15%
Gross margin68% vs. 78%
FCF margin+20% vs. +19%
SBC / revenue4% vs. 9%
Rule of 4038 vs. 34
EV / revenue12.0× vs. 5.0×
Group averages are the plain mean of the other companies in the same scale group with a usable window.
Quarter by quarter
8 quarters · Sep 30, 2024 → Jun 30, 2026 · a gap is a dropped quarter