Microsoft Corp
NASDAQ:MSFT

Watchlist Manager
Microsoft Corp Logo
Microsoft Corp
NASDAQ:MSFT
Watchlist
Price: 371.61 USD -3.66% Market Closed
Market Cap: 2.8T USD

Relative Value

The Relative Value of one MSFT stock under the Base Case scenario is 344.22 USD. Compared to the current market price of 371.61 USD, Microsoft Corp is Overvalued by 7%.

Relative Value is the estimated value of a stock based on various valuation multiples like P/E and EV/EBIT ratios. It offers a quick snapshot of a stock's valuation in relation to its peers and historical norms.

MSFT Relative Value
Base Case
344.22 USD
Overvaluation 7%
Relative Value
Price
Worst Case
Base Case
Best Case

Valuation Multiples

vs History
58
vs Industry
10
Median 3Y
11.7
Median 5Y
11.4
Industry
2.2
Forward
9.8
vs History
68
vs Industry
19
Median 3Y
33
Median 5Y
32.9
Industry
21
Forward
27.8
vs History
76
vs Industry
25
Median 3Y
25.6
Median 5Y
25.3
Industry
15.9
vs History
9
vs Industry
10
Median 3Y
37.3
Median 5Y
38
Industry
20
vs History
96
vs Industry
11
Median 3Y
11.5
Median 5Y
12.1
Industry
2.7
vs History
53
vs Industry
10
Median 3Y
11.4
Median 5Y
11.1
Industry
2.2
Forward
9.8
vs History
57
vs Industry
14
Median 3Y
16.5
Median 5Y
16.2
Industry
4.4
vs History
77
vs Industry
22
Median 3Y
22
Median 5Y
22.4
Industry
11.8
Forward
17.7
vs History
71
vs Industry
20
Median 3Y
26.4
Median 5Y
26.9
Industry
15.2
Forward
21.8
vs History
68
vs Industry
24
Median 3Y
25
Median 5Y
24.8
Industry
14.5
vs History
28
vs Industry
13
Median 3Y
40.6
Median 5Y
35.8
Industry
17.1
vs History
96
vs Industry
15
Median 3Y
7.7
Median 5Y
8.4
Industry
2.2

Multiples Across Competitors

MSFT Competitors Multiples
Microsoft Corp Competitors

Market Cap P/S P/E EV/EBITDA EV/EBIT
US
Microsoft Corp
NASDAQ:MSFT
2.8T USD 10.6 29.8 19.2 23.5
US
Oracle Corp
NYSE:ORCL
363.7B USD 6.5 29.9 18.3 24.5
US
ServiceNow Inc
NYSE:NOW
164.5B USD 15 115.4 83.1 117.5
US
Palo Alto Networks Inc
NASDAQ:PANW
112.1B USD 13.1 89.4 79.6 104.2
US
CrowdStrike Holdings Inc
NASDAQ:CRWD
94.2B USD 23.8 -4 885.7 941.2 -769.3
US
Fortinet Inc
NASDAQ:FTNT
73.7B USD 12.4 42.2 36.1 38.5
US
VMware Inc
XETRA:BZF1
58B EUR 4.9 46.3 21.4 36.1
US
Xperi Holding Corp
LSE:0M2A
54.6B USD 145.2 845.1 255.6 386.3
US
Zscaler Inc
NASDAQ:ZS
31.4B USD 13 -2 021.3 -32 165.2 -294.3
IL
Check Point Software Technologies Ltd
NASDAQ:CHKP
23.6B USD 9.2 28 23.2 25.4
IL
Cyberark Software Ltd
NASDAQ:CYBR
16.4B USD 16.4 -175.2 -504.7 -213.7
P/E Multiple
Earnings Growth PEG
US
Microsoft Corp
NASDAQ:MSFT
Average P/E: 153.3
29.8
15%
2
US
Oracle Corp
NYSE:ORCL
29.9
30%
1
US
ServiceNow Inc
NYSE:NOW
115.4
53%
2.2
US
Palo Alto Networks Inc
NASDAQ:PANW
89.4
4%
22.3
US
CrowdStrike Holdings Inc
NASDAQ:CRWD
Negative Multiple: -4 885.7 N/A N/A
US
Fortinet Inc
NASDAQ:FTNT
42.2
15%
2.8
US
V
VMware Inc
XETRA:BZF1
46.3
39%
1.2
US
Xperi Holding Corp
LSE:0M2A
845.1
N/A N/A
US
Zscaler Inc
NASDAQ:ZS
Negative Multiple: -2 021.3 N/A N/A
IL
Check Point Software Technologies Ltd
NASDAQ:CHKP
28
16%
1.7
IL
Cyberark Software Ltd
NASDAQ:CYBR
Negative Multiple: -175.2 N/A N/A
EV/EBITDA Multiple
EBITDA Growth EV/EBITDA to Growth
US
Microsoft Corp
NASDAQ:MSFT
Average EV/EBITDA: 164.2
19.2
15%
1.3
US
Oracle Corp
NYSE:ORCL
18.3
24%
0.8
US
ServiceNow Inc
NYSE:NOW
83.1
54%
1.5
US
Palo Alto Networks Inc
NASDAQ:PANW
79.6
49%
1.6
US
CrowdStrike Holdings Inc
NASDAQ:CRWD
941.2
179%
5.3
US
Fortinet Inc
NASDAQ:FTNT
36.1
18%
2
US
V
VMware Inc
XETRA:BZF1
21.4
19%
1.1
US
Xperi Holding Corp
LSE:0M2A
255.6
N/A N/A
US
Zscaler Inc
NASDAQ:ZS
Negative Multiple: -32 165.2 N/A N/A
IL
Check Point Software Technologies Ltd
NASDAQ:CHKP
23.2
12%
1.9
IL
Cyberark Software Ltd
NASDAQ:CYBR
Negative Multiple: -504.7 N/A N/A
EV/EBIT Multiple
EBIT Growth EV/EBIT to Growth
US
Microsoft Corp
NASDAQ:MSFT
Average EV/EBIT: 94.5
23.5
15%
1.6
US
Oracle Corp
NYSE:ORCL
24.5
28%
0.9
US
ServiceNow Inc
NYSE:NOW
117.5
66%
1.8
US
Palo Alto Networks Inc
NASDAQ:PANW
104.2
60%
1.7
US
CrowdStrike Holdings Inc
NASDAQ:CRWD
Negative Multiple: -769.3 N/A N/A
US
Fortinet Inc
NASDAQ:FTNT
38.5
18%
2.1
US
V
VMware Inc
XETRA:BZF1
36.1
30%
1.2
US
Xperi Holding Corp
LSE:0M2A
386.3
N/A N/A
US
Zscaler Inc
NASDAQ:ZS
Negative Multiple: -294.3 N/A N/A
IL
Check Point Software Technologies Ltd
NASDAQ:CHKP
25.4
14%
1.8
IL
Cyberark Software Ltd
NASDAQ:CYBR
Negative Multiple: -213.7 N/A N/A