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andre_santos updated the narrative for MSFT

MSFT logo

From Legacy to Cloud: A Valuation of Microsoft’s Evolving Business Model

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MSFT
A
andre_santos
andre_santos
Invested
Published 20 Jul 2025
9 viewsusers have viewed this narrative update

Update shared on 02 Aug 2025

Fair value Increased 12%
Next
01 Aug
US$493.78
andre_santos's Fair Value
US$507.34
2.7% undervalued intrinsic discount
1Y
-4.7%
7D
-0.4%
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1Y
-4.7%
7D
-0.4%

Updated with most recent annual report.

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Disclaimer

The user andre_santos has a position in NasdaqGS:MSFT. Simply Wall St has no position in any of the companies mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The author of this narrative is not affiliated with, nor authorised by Simply Wall St as a sub-authorised representative. This narrative is general in nature and explores scenarios and estimates created by the author. The narrative does not reflect the opinions of Simply Wall St, and the views expressed are the opinion of the author alone, acting on their own behalf. These scenarios are not indicative of the company's future performance and are exploratory in the ideas they cover. The fair value estimates are estimations only, and does not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that the author's analysis may not factor in the latest price-sensitive company announcements or qualitative material.

Valuator
Company Info
Notes
andre_santos'sFair Value
US$494.83
Fairly Valued intrinsic discount
Future estimation in
PastFuture0816b20142018202220252026203020342035Revenue US$815.9bEarnings US$326.4b
Revenue
Profit Margin
Future PE
Growth p.a.
%
Decrease
Increase
Forecast revenue growth rate
15.25%
Historical revenue growth rate
12.85%
Software revenue growth rate
3.68%
Risk Level (Discount Rate)
Our default considers factors like the company's size, volatility, profitablity and country of operation.
%
0
Decrease
Increase
Current discount rate
8.69%
Calculation
US$326.37b
Earnings '35
x
30.00x
PE Ratio '35
=
US$9.79t
Market Cap '35
US$9.79t
Market Cap '35
/
7.43b
No. shares '35
=
US$1.32k
Share Price '35
US$1.32k Share Price '35
Discounted to 2025 @ 10.28% p.a.
=
US$495.02
Fair Value '25