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Microsoft Corporation (MSFT) price target and intrinsic value estimate is $488.1.

The intrinsic value is based on a target P/E of 32.9 and forward estimate EPS of $14.82.

MSFT is currently trading at $416.06 (15% undervalued).

Prices, estimates and other information presented here are not financial advice.

Target P/E and margin of safety is computed using the method described here.

Other valuations:

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Microsoft Corporation
MSFT
416.06 (-0.16%) 0.68
Fair price estimates:
Low ($11.12 EPS)
$366.1
Average ($14.82 EPS)
$488.1
High ($18.52 EPS)
$610.2
My holdings
My holdings:
Shares:
Cost basis:
Information Technology
Software
Market cap:$ 3.09(T)
Enterprise value:$ 3.03(T)
Div. yield:0.72%
P/E:35.08
P/FCF:41.77
P/B:11.52
DescriptionNotes
Microsoft Corporation develops and supports software services devices and solutions worldwide. The Productivity and Business Processes segment offers office exchange SharePoint Microsoft Teams office 365 Security and Compliance Microsoft viva and Microsoft 365 copilot; and office consumer services such as Microsoft 365 consumer subscriptions Office licensed on-premises and other office services. This segment also provides LinkedIn; and dynamics business solutions including Dynamics 365 a set of intelligent cloud-based applications across ERP CRM power apps and power automate; and on-premises ERP and CRM applications. The Intelligent Cloud segment offers server products and cloud services such as azure and other cloud services; SQL and windows server visual studio system center and related client access licenses as well as nuance and GitHub; and enterprise services including enterprise support services industry solutions and nuance professional services. The More Personal Computing segment offers Windows including windows OEM licensing and other non-volume licensing of the Windows operating system; Windows commercial comprising volume licensing of the Windows operating system windows cloud services and other Windows commercial offerings; patent licensing; and windows Internet of Things; and devices such as surface HoloLens and PC accessories. Additionally this segment provides gaming which includes Xbox hardware and content and first- and third-party content; Xbox game pass and other subscriptions cloud gaming advertising third-party disc royalties and other cloud services; and search and news advertising which includes Bing Microsoft News and Edge and third-party affiliates. The company sells its products through OEMs distributors and resellers; and directly through digital marketplaces online and retail stores. The company was founded in 1975 and is headquartered in Redmond Washington.
PEvaluation
Shares outstan...ROICRevenue growthDebt/FCFAssets/Liabili...
Economic moat: Very wide
None/narrowMediumWideVery wide
Fair P/E
Margin of safety
EPS estimates
Currentprice:416.1Buy price421.1Fair price488.1
TTM Financials
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Growth estimates
Revenue Upgrade
EPS14.7%

Historical financials

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