MSTR PE Ratio & Valuation,Is MSTR Overvalued

MSTR Relative Valuation

MSTR'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, MSTR is overvalued; if below, it's undervalued.

Historical Valuation

Strategy Inc (MSTR) is now in the Undervalued zone, suggesting that its current forward PS ratio of 97.00 is considered Undervalued compared with the five-year average of -134.77. The fair price of Strategy Inc (MSTR) is between 196.08 to 320.67 according to relative valuation methord. Compared to the current price of 161.83 USD , Strategy Inc is Undervalued By 17.47%.

Relative Value

Fair Zone

196.08-320.67

Current Price：161.83

17.47%

Undervalued

6.27

1700.44

EV/EBITDA

Strategy Inc. (MSTR) has a current EV/EBITDA of 1700.44. The 5-year average EV/EBITDA is 668.55. The thresholds are as follows: Strongly Undervalued below -1264.18, Undervalued between -1264.18 and -297.82, Fairly Valued between 1634.91 and -297.82, Overvalued between 1634.91 and 2601.27, and Strongly Overvalued above 2601.27. The current Forward EV/EBITDA of 1700.44 falls within the Overvalued range.

4.17

EV/EBIT

Strategy Inc. (MSTR) has a current EV/EBIT of 4.17. The 5-year average EV/EBIT is -312.09. The thresholds are as follows: Strongly Undervalued below -1712.85, Undervalued between -1712.85 and -1012.47, Fairly Valued between 388.29 and -1012.47, Overvalued between 388.29 and 1088.67, and Strongly Overvalued above 1088.67. The current Forward EV/EBIT of 4.17 falls within the Historic Trend Line -Fairly Valued range.

97.00

Strategy Inc. (MSTR) has a current PS of 97.00. The 5-year average PS is 56.10. The thresholds are as follows: Strongly Undervalued below -92.08, Undervalued between -92.08 and -17.99, Fairly Valued between 130.19 and -17.99, Overvalued between 130.19 and 204.29, and Strongly Overvalued above 204.29. The current Forward PS of 97.00 falls within the Historic Trend Line -Fairly Valued range.

1904.89

P/OCF

Strategy Inc. (MSTR) has a current P/OCF of 1904.89. The 5-year average P/OCF is -279.18. The thresholds are as follows: Strongly Undervalued below -5602.03, Undervalued between -5602.03 and -2940.60, Fairly Valued between 2382.25 and -2940.60, Overvalued between 2382.25 and 5043.68, and Strongly Overvalued above 5043.68. The current Forward P/OCF of 1904.89 falls within the Historic Trend Line -Fairly Valued range.

-318.33

P/FCF

Strategy Inc. (MSTR) has a current P/FCF of -318.33. The 5-year average P/FCF is -10227.77. The thresholds are as follows: Strongly Undervalued below -106395.80, Undervalued between -106395.80 and -58311.79, Fairly Valued between 37856.24 and -58311.79, Overvalued between 37856.24 and 85940.25, and Strongly Overvalued above 85940.25. The current Forward P/FCF of -318.33 falls within the Historic Trend Line -Fairly Valued range.

Strategy Inc (MSTR) has a current Price-to-Book (P/B) ratio of 0.86. Compared to its 3-year average P/B ratio of 6.41 , the current P/B ratio is approximately -86.55% higher. Relative to its 5-year average P/B ratio of 9.19, the current P/B ratio is about -90.62% higher. Strategy Inc (MSTR) has a Forward Free Cash Flow (FCF) yield of approximately -0.23%. Compared to its 3-year average FCF yield of -0.06%, the current FCF yield is approximately 252.78% lower. Relative to its 5-year average FCF yield of 0.58% , the current FCF yield is about -139.57% lower.

0.86

P/B

Median3y

6.41

Median5y

9.19

-0.23

FCF Yield

Median3y

-0.06

Median5y

0.58

Competitors Valuation Multiple

The average P/S ratio for MSTR's competitors is 27.69, providing a benchmark for relative valuation. Strategy Inc Corp (MSTR) exhibits a P/S ratio of 97.00, which is 250.37% above the industry average. Given its robust revenue growth of 10.87%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

Revenue Growth

Market Cap

Performance Decomposition

Market capitalization of MSTR decreased by 51.66% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 0.66 to 5.75.

The secondary factor is the Revenue Growth, contributed 10.87%to the performance.

Overall, the performance of MSTR in the past 1 year is driven by P/E Change. Which is more unsustainable.

10.87%

116.07M → 128.69M

Revenue Growth

-838.43%

-293.07 → 2.16K

Margin Expansion

775.90%

0.66 → 5.75

P/E Change

-51.66%

334.79 → 161.83

Mkt Cap Growth

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Frequently Asked Questions

Is Strategy Inc (MSTR) currently overvalued or undervalued?

What is Strategy Inc (MSTR) fair value?

MSTR'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. The fair price of Strategy Inc (MSTR) is between 196.08 to 320.67 according to relative valuation methord.

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

What is the current P/B ratio for Strategy Inc (MSTR) as of Jan 08 2026?

As of Jan 08 2026, Strategy Inc (MSTR) has a P/B ratio of 0.86. This indicates that the market values MSTR at 0.86 times its book value.

What is the current FCF Yield for Strategy Inc (MSTR) as of Jan 08 2026?

As of Jan 08 2026, Strategy Inc (MSTR) has a FCF Yield of -0.23%. This means that for every dollar of Strategy Inc’s market capitalization, the company generates -0.23 cents in free cash flow.

What is the current Forward P/E ratio for Strategy Inc (MSTR) as of Jan 08 2026?

As of Jan 08 2026, Strategy Inc (MSTR) has a Forward P/E ratio of 6.27. This means the market is willing to pay $6.27 for every dollar of Strategy Inc’s expected earnings over the next 12 months.

What is the current Forward P/S ratio for Strategy Inc (MSTR) as of Jan 08 2026?

As of Jan 08 2026, Strategy Inc (MSTR) has a Forward P/S ratio of 97.00. This means the market is valuing MSTR at $97.00 for every dollar of expected revenue over the next 12 months.

MSTR Valuation