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Microsoft Corporation
MSFT
510.18 (1.42%) 7.24
Information Technology
Software
Microsoft Corporation develops and supports software services devices and solutions worldwide. The company’s Productivity and Business Processes segment offers Microsoft 365 Commercial Enterprise Mobility + Security Windows Commercial Power BI Exchange SharePoint Microsoft Teams Security and Compliance and Copilot; Microsoft 365 Commercial products such as Windows Commercial on-premises and Office licensed services; Microsoft 365 Consumer products and cloud services such as Microsoft 365 Consumer subscriptions Office licensed on-premises and other consumer services; LinkedIn; Dynamics products and cloud services such as Dynamics 365 cloud-based applications and on-premises ERP and CRM applications. Its Intelligent Cloud segment provides Server products and cloud services such as Azure and other cloud services GitHub Nuance Healthcare virtual desktop offerings and other cloud services; Server products including SQL and Windows Server Visual Studio and System Center related Client Access Licenses and other on-premises offerings; Enterprise and partner services including Enterprise Support and Nuance professional Services Industry Solutions Microsoft Partner Network and Learning Experience. The company’s Personal Computing segment provides Windows and Devices such as Windows OEM licensing and Devices and Surface and PC accessories; Gaming services and solutions such as Xbox hardware content and services first- and third-party content Xbox Game Pass subscriptions and Cloud Gaming advertising and other cloud services; search and news advertising services such as Bing and Copilot Microsoft News and Edge and third-party affiliates. It sells its products through OEMs distributors and resellers; and online and retail stores. The company was founded in 1975 and is headquartered in Redmond Washington.

Quality Checklist 8/8

5Y Shares Out Change < 0%
ROIC > 10%
Debt/Equity < 1
Current Ratio > 1
Quick Ratio > 1
Net Margin > 10%
Past Net Income CAGR > 0%
Est. EPS Growth > 5%
0.0%of Portfolio

My holdings

Day change:
Total change:
Shares:
Cost basis:
Market cap: $3.79(T)
EV: $3.81(T)
Total Equity: $363.08(B)
Earnings date: Jan-29-2026
P/E: 36.16
Forward P/E: 31.73
P/FCF: 48.63
P/S: 12.91
P/B: 10.45
EPS: $14.1
EPS (fwd): $16.1
FCF/share: $10.5
Revenue/share: $39.5
Book value/share: $48.8
ROIC: 27.1%
ROA: 18.1%
ROE: 32.2%
Debt/Equity: 0.33
Current Ratio: 1.40
Gross margin: 68.8%
Operating margin: 46.3%
Net margin: 35.7%
Dividend/share: $3.4
Div. yield: 0.67%
All Valuation Overview Growth Financials & KPIsCompetitors & Peer Comparison Ownership Tools

MSFT Valuation & Price Targets

Current Price
$510

Favorite Valuation Methods

PEvaluation
N/A
Analyst targets
N/A
DCF (2-stage)
N/A

More Valuation Methods

DCF (simple)
N/A
N/A
DCF (exit mult.)
N/A
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DDM
N/A
N/A
EPS growth
N/A
N/A
Revenue growth
N/A
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Peter Lynch FV
N/A
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Graham No.
N/A
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PEvaluation

25% undervalued
Low
$477
Mid
$636
High
$795
Current price
$510
Fair P/E
Margin of safety
EPS
Market Model
Shares outstan...ROICRevenue growthDebt/FCFAssets/Liabili...
Economic moat: Very wide

EPS Estimates

LowAvgHigh#
FY+115.016.116.831
FY+216.418.720.444
FY+320.922.324.123
FY+424.326.629.03
FY+527.531.735.92

Analyst Price Targets

24% undervalued
Low
$483
Mid
$632
High
$730
Current price
$510

Analyst Recommendations

Strong Buy12
Buy46
Hold0
Sell0
Strong Sell0

2-stage DCF

First Stage Duration: 5 Years
Starting Free Cash Flow
First Stage Growth Rate
LowMidHigh
Terminal Growth Rate
LowMidHigh
Discount Rate

Discounted Cash Flow

Forecast years: 5 Years
Terminal Growth Rate
LowMidHigh
Discount Rate
Free cash flow estimates:
Y+1 est.
Y+2 est.
0.00%
Y+3 est.
0.00%
Y+4 est.
0.00%
Y+5 est.
0.00%

Discounted Cash Flow (exit mult.)

Forecast years: 5 Years
Exit FCF Multiple
LowMidHigh
Discount Rate
Free cash flow estimates:
Y+1 est.
Y+2 est.
0.00%
Y+3 est.
0.00%
Y+4 est.
0.00%
Y+5 est.
0.00%

Dividend Discount Model

Annual Dividend
First Stage Length (Years): 0 Years
First Stage Growth Rate
Final Growth Rate
Discount Rate

EPS Growth

Forecast years: 5 Years
Starting EPS
EPS Growth Rate
LowMidHigh
Final P/E
LowMidHigh
Discount Rate

Revenue Growth Valuation

Forecast Years: 10 Years
Base Revenue
Revenue Growth Rate
LowMidHigh
Final Net Margin
LowMidHigh
Final P/E Ratio
LowMidHigh
Discount Rate

Peter Lynch Fair Value

Earnings Per Share
Growth Rate

Graham Formula

Earnings Per Share
EPS Growth (7-10 years)
Government Bond Rate
(C) PEVALUATOR
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