Microsoft Corporation

SWX:000951692 Stock Report

Market Cap: US$3.2t

Microsoft Valuation

Is 000951692 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of 000951692 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 000951692 ($350) is trading below our estimate of fair value ($533.02)

Significantly Below Fair Value: 000951692 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 000951692?

Other financial metrics that can be useful for relative valuation.

000951692 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue13.1x
Enterprise Value/EBITDA24.8x
PEG Ratio2.9x

Price to Earnings Ratio vs Peers

How does 000951692's PE Ratio compare to its peers?

The above table shows the PE ratio for 000951692 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average72.1x
ORCL Oracle
42.6x16.3%US$467.6b
NOW ServiceNow
158.4x22.4%US$181.5b
PANW Palo Alto Networks
42.4x-2.5%US$109.3b
FTNT Fortinet
45.1x12.4%US$59.2b
000951692 Microsoft
36.1x12.4%US$3.2t

Price-To-Earnings vs Peers: 000951692 is good value based on its Price-To-Earnings Ratio (36.1x) compared to the peer average (72.1x).

Price to Earnings Ratio vs Industry

How does 000951692's PE Ratio compare vs other companies in the European Software Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a32.1%
 n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a32.1%
 n/an/an/a
No more companies

Price-To-Earnings vs Industry: 000951692 is expensive based on its Price-To-Earnings Ratio (36.1x) compared to the European Software industry average (30.3x).

Price to Earnings Ratio vs Fair Ratio

What is 000951692's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

000951692 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio36.1x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate 000951692's Price-To-Earnings Fair Ratio for valuation analysis.

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst 000951692 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$350.00
US$501.75
+43.4%
6.3%US$600.00US$440.00n/a50
Sep ’25US$350.00
US$501.45
+43.3%
6.6%US$600.00US$440.00n/a51
Aug ’25US$350.00
US$499.34
+42.7%
6.8%US$600.00US$429.70n/a52
Jul ’25n/a
US$490.79
0%
7.8%US$600.00US$429.70n/a51
Jun ’25n/a
US$483.08
0%
7.5%US$600.00US$399.70n/a52
May ’25n/a
US$477.62
0%
7.2%US$600.00US$399.70n/a52
Apr ’25n/a
US$470.12
0%
7.4%US$600.00US$399.70n/a53
Mar ’25n/a
US$465.63
0%
7.4%US$600.00US$399.70n/a51
Feb ’25n/a
US$456.93
0%
8.4%US$600.00US$370.00n/a49
Jan ’25n/a
US$415.87
0%
9.7%US$600.00US$298.10n/a51
Dec ’24n/a
US$406.73
0%
6.9%US$475.00US$298.10n/a50
Nov ’24n/a
US$403.27
0%
6.6%US$450.00US$298.10n/a50
Oct ’24n/a
US$393.69
0%
7.4%US$440.00US$298.10n/a49
Sep ’24n/a
US$389.52
0%
10.0%US$440.00US$232.00US$350.0049
Aug ’24n/a
US$390.21
0%
9.7%US$450.00US$232.00US$350.0050
Jul ’24n/a
US$347.32
0%
10.9%US$450.00US$232.00n/a46
Jun ’24n/a
US$341.67
0%
10.7%US$450.00US$232.00n/a47
May ’24n/a
US$331.47
0%
9.3%US$420.00US$232.00n/a48
Apr ’24n/a
US$298.07
0%
12.2%US$420.00US$212.00n/a47
Mar ’24n/a
US$292.33
0%
11.2%US$411.00US$212.00n/a47
Feb ’24n/a
US$286.12
0%
11.5%US$411.00US$212.00n/a47
Jan ’24n/a
US$296.84
0%
11.4%US$411.00US$234.00n/a45
Dec ’23n/a
US$296.98
0%
11.5%US$411.00US$234.00n/a44
Nov ’23n/a
US$300.44
0%
11.0%US$411.00US$255.00n/a42
Oct ’23n/a
US$333.81
0%
9.1%US$411.00US$280.52n/a42
Sep ’23n/a
US$333.62
0%
9.2%US$411.00US$280.52n/a42

Analyst Forecast: Target price is less than 20% higher than the current share price.

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