Microsoft is one of the largest companies in the world, whose name is known to everyone. But do you know its history? Here we tell you about Microsoft’s net worth, its beginnings, shareholders, and more.
Microsoft is the result of a brainstorming session between Bill Gates and Paul Allen. Both wanted to create software that would run on the Altair 8800, a prototype personal computer. Although Microsoft itself started in 1975 in a garage in Albuquerque.
Table of Contents
Just five years later, Microsoft made a deal to supply operating systems for IBM computers. Five years later, Windows was released, which changed the computing world for the better and is still an important part of its field. By the late 1980s, Microsoft had already become the world’s largest software company for personal computers. Today, it competes every day with its rival Apple for the title of the best computer company in the world.
Microsoft is currently headquartered in Redmond, Washington. The current CEO is not Bill Gates, but Satya Nadella, who became CEO in 2014. Prior to that, he was part of Microsoft’s cloud and enterprise group, where he was an executive vice president. He was also responsible for the creation and operation of the Microsoft computing platform.
In the decades since its inception, Microsoft has made many millions of dollars. It wasn’t until April 25, 2019 that Microsoft made history when it was valued at a whopping $1 trillion. Later in October of that year, its value increased to $1.04 trillion. Microsoft is currently worth about $2 trillion.
Market capitalization is used to understand the value of a company. Market capitalization is the number of shares of any type issued by a company that exceeds the current market price of the shares. However, market capitalization has its drawbacks, especially as a valuation method. First, market capitalization changes quite frequently. It is also very closely related to the current share price of the company. But it does not take into account any direct financial factors of the company, such as book value or growth rate.
Another evaluation method is price/earnings ratio, it is also related to the price of the company’s shares. The P/E ratio is highly dependent on the company’s earnings. But sometimes investors believe that this is a more important factor in the value of the company. Microsoft’s price/earnings ratio is 32.36.
So, using the market cap method, Microsoft, as of February 2022, is the second most valuable company in the world with a market capitalization of $2 trillion. So, as of February 8, an investor can buy the company’s shares at a price of $305 per share. Market capitalization depends on the price of its shares, and therefore, as of February 8, Microsoft’s market capitalization is about $2.785 trillion.
Microsoft: net worth
Net Worth is now the company’s assets minus any liabilities. It can also be called share capital. As of June 30, 2021, it was $141.988 billion. Thus, using company data, Microsoft’s net worth is based on measurable factors such as assets and income. This is a more conservative estimate than most because it takes into account earnings for the entire year and revenue for the last three years. By this measure, Microsoft’s net worth is currently around $456,132,333,333, or just $456 billion in simpler terms.
Here’s how the cost is estimated:
- Share price, 1 year: $349.67-$224.26
- Revenue for fiscal year 2021: $168,088,000,000.
- Share capital: $141,988,000,000
- Total: $456,132,333,333
Microsoft’s revenue falls into three categories:
- Productivity and business processes: $15.97 billion, up 19%.
- Intelligent cloud: $18.3 billion, up 26%.
- More personal computers, $17.5 billion, up 15%
- Total: $51.71 billion, up 20% over the same quarter last year.
There are many Microsoft shareholders. In total, they own an incredible 71.947% of all Microsoft shares. Here are the top 10 shareholders:
- Avangard Group, 8.19% of shares
- Blackrock Inc, 6.76% stake
- State Street Corp., 3.93% stake
- FMR LLC, 2.88% of shares
- T. Rowe Price Associates, 2.64% stake
- Geode Capital Management, 1.68% stake
- Capital World Investors, 1.47% stake
- Capital Research Global Investors, 1.26% stake
- Capital International Investors, 1.23% stake
- Northern Trust Corporation, 1.20% stake
Interestingly, if you are part of or own a mutual fund, then you can own part of Microsoft! Here are the top 10 mutual funds that have stakes in Microsoft:
- Vanguard Total Stock Market Index, 2.83% share
- Vanguard 500 index fund, 2.11% stake
- SPDR S&P 500 ETF, 1.08% stake
- Fidelity 500 index fund, 0.98% stake
- Invesco ETF QQQ Trust, 0.90% stake
- iShares Core S&P 500 ETF, 0.82% stake
- Vanguard Growth Index Fund, 0.79% stake
- Vanguard Institutional Index Fund, 0.77% stake
- Growth Fund Of America Inc., 0.72% stake
- Vanguard Information Technology Index Fund, 0.45% stake
As for the future, it looks good for Microsoft. Of course, they continue to exceed their estimates and the demands on the company remain high. On Yahoo Finance, Microsoft received a Buy or Strong Buy rating from 27 out of 34 analysts. Similarly, the current average price is $370.97, which is about 22% higher than the current price.
With all of this in mind, maybe you can consider Microsoft as a potential investment! It seems like the company is just aiming for new heights, so this seems like a win-win bet.