Based on the provided data and recent market analysis, here's a concise evaluation of Microsoft's (MS) valuation:
Microsoft currently trades at a P/E ratio of 34.01x (Q2 2024), which is notably higher than its historical average, suggesting premium pricing.
The company's EV/EBITDA of 23.83x indicates rich valuation compared to industry peers, while its Price-to-Sales ratio of 12.33x reflects high growth expectations.
Revenue growth remains solid at 12.27% but lags behind the industry average of 13.58%, indicating some growth momentum concerns.
The company's strong EBITDA of $36.79 billion (62.36x above industry average) and gross profit of $47.83 billion demonstrate robust operational efficiency and pricing power.
While Microsoft's core business fundamentals remain exceptionally strong with expanding margins and AI revenue reaching $13 billion annual run rate, current valuation metrics suggest the stock is moderately overvalued at current levels.