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MSFT Valuation

Microsoft Corp
$
505.870
+0.6(0.119%)1D
  • Overview
  • Forecast
  • Valuation
  • Earnings

MSFT Relative Valuation

MSFT's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, MSFT is overvalued; if below, it's undervalued.

Historical Valuation

Microsoft Corp (MSFT) is now in the Undervalued zone, suggesting that its current forward PE ratio of 35.04 is considered Undervalued compared with the five-year average of 30.21. The fair price of Microsoft Corp (MSFT) is between 525.69 to 595.60 according to relative valuation methord. Compared to the current price of 501.65 USD , Microsoft Corp is Undervalued By 4.57%.
Relative Value
Fair Zone
525.69-595.60
Current Price:501.65
4.57%
Undervalued
P/E
EV/EBITDA
EV/EBIT
P/S
P/OCF
P/FCF
1Y
3Y
5Y
Trailing
Forward
11.68
P/B
Median3y
11.40
Median5y
12.44
1.85
FCF Yield
Median3y
2.56
Median5y
2.66

Competitors Valuation Multiple

The average P/S ratio for MSFT's competitors is 21.02, providing a benchmark for relative valuation. Microsoft Corp Corp (MSFT) exhibits a P/S ratio of 12.28, which is -41.59% above the industry average. Given its robust revenue growth of 13.27%, this premium appears unsustainable.

FAQ

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Is Microsoft Corp (MSFT) currently overvalued or undervalued?

Microsoft Corp (MSFT) is now in the Undervalued zone, suggesting that its current forward PE ratio of 35.04 is considered Undervalued compared with the five-year average of 30.21. The fair price of Microsoft Corp (MSFT) is between 525.69 to 595.60 according to relative valuation methord. Compared to the current price of 501.65 USD , Microsoft Corp is Undervalued By 4.57% .
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What is Microsoft Corp (MSFT) fair value?

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How does MSFT's valuation metrics compare to the industry average?

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What is the current P/B ratio for Microsoft Corp (MSFT) as of Jul 24 2025?

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What is the current FCF Yield for Microsoft Corp (MSFT) as of Jul 24 2025?

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What is the current Forward P/E ratio for Microsoft Corp (MSFT) as of Jul 24 2025?

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What is the current Forward P/S ratio for Microsoft Corp (MSFT) as of Jul 24 2025?