Business Valuation of Microsoft Corporation: Based on the DDM Model and the FCFF Model

DOI

10.2991/978-94-6463-811-0_5How to use a DOI?

Keywords

Corporate Valuation; DDM Model; FCFF Model

Abstract

Since the four Industrial Revolutions brought people mechanisation, electrification, digital manufacturing technology, and smart production, more attention has been paid to technology. Moreover, developing technology has become the top priority in the modern world. The appearance of Microsoft Corporation (MSFT) hit the world dramatically. During its successful operation over five decades, MSFT has launched products like Microsoft Office, LinkedIn, and Xbox, bringing more investors to the company. However, some of them are confused about the company’s true value. Whether MSFT is fairly priced becomes the question for investors worldwide. So, this paper tries to calculate the intrinsic value of MSFT using multiple methods, as the DDM Model and the FCFF Model. The assessed value will be contrasted to the firm’s market share price to determine if it’s undervalued, overvalued, or reasonably priced. Two approaches are used to reduce haphazard. The paper tries to give investors a more comprehensive view of MSFT’s stock to help them make investment decisions and optimise their portfolios.

Copyright

© 2025 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Yiying Lu
PY  - 2025
DA  - 2025/08/14
TI  - Business Valuation of Microsoft Corporation: Based on the DDM Model and the FCFF Model
BT  - Proceedings of the 2025 5th International Conference on Enterprise Management and Economic Development (ICEMED 2025)
PB  - Atlantis Press
SP  - 37
EP  - 45
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-811-0_5
DO  - 10.2991/978-94-6463-811-0_5
ID  - Lu2025
ER  -