MSFT Q1 2023 Guidance
MSFT Q1 2023 excel
So essentially, MSFT does an amazing job of giving us very detailed guidance as you can see in the first picture. I can basically plug and chug that data into an excel spreadsheet and make a income statement. From that income statement I then have to make assumptions like what their diluted shares might be based off of previous reports. I can then calculate an eps and calculate PE with forward numbers.
We’re calculating YOY changes from q1 2022 to q1 2023 and their intelligent cloud revenue segment is looking to be the best with about 20% revenue growth.
Total revenue growth is looking to be around 8-11%
EPS calculation is about 2.28 to 2.36 but if we’re going conservative we should be using the smaller of the two.
4 quarters of eps gives us a trailing 12 month eps of 9.21 and share price is 242.12 giving us a current PE of 26.29 which is below average from what we’ve been seeing last 5 years. Keep in mind that rates are putting pressure on equity multiples because we can essentially get rather risk free yields from treasuries and we can also get decent yields from Aaa corporate bonds.