Microsoft Corporation

SWX:MSFT Stock Report

Market Cap: CHF 2.9t

Microsoft Valuation

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

Valuation Score

4/6

Valuation Score 4/6

  • 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 MSFT when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

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Learn how to determine fair value like the best investors in the world.

Below Fair Value: MSFT (CHF376.35) is trading below our estimate of fair value (CHF549.8)

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

Key Valuation Metric

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

Key metric: As MSFT is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for MSFT. This is calculated by dividing MSFT's market cap by their current earnings.
What is MSFT's PE Ratio?
PE Ratio34x
EarningsUS$104.91b
Market CapUS$3.56t

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for MSFT vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average65.8x
ORCL Oracle
37x21.76%US$570.4b
NOW ServiceNow
85x19.73%US$147.1b
PANW Palo Alto Networks
118x19.51%US$131.7b
TEMN Temenos
23.1x-7.09%CHF 5.8b
MSFT Microsoft
34x14.53%CHF 3.6t

Price-To-Earnings vs Peers: MSFT is good value based on its Price-To-Earnings Ratio (34x) compared to the peer average (65.8x).

Historical Price to Earnings Ratio

Historical Price to Earnings Ratio compares a stock's price to its earnings over time. Higher ratios indicate that investors are willing to pay more for the stock.

Fetching historical data

Price to Earnings Ratio vs Industry

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

9 CompaniesPrice / EarningsEstimated GrowthMarket Cap
MSFT 34.0xIndustry Avg. 27.7xNo. of Companies21PE020406080100+
9 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: MSFT is expensive based on its Price-To-Earnings Ratio (34x) compared to the European Software industry average (27.7x).

Price to Earnings Ratio vs Fair Ratio

What is MSFT'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.

MSFT PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio34x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate MSFT'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 MSFT forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentCHF 376.35
CHF 497.20
+32.11%
7.92%CHF 583.67CHF 386.18n/a53
Jan ’27n/a
CHF 493.21
0%
8.04%CHF 578.36CHF 382.67n/a53
Dec ’26n/a
CHF 503.35
0%
7.84%CHF 587.53CHF 388.74n/a52
Nov ’26n/a
CHF 504.05
0%
7.42%CHF 587.39CHF 388.65n/a52
Oct ’26n/a
CHF 492.15
0%
8.12%CHF 565.87CHF 384.95n/a51
Sep ’26n/a
CHF 492.89
0%
8.15%CHF 560.11CHF 386.48n/a50
Aug ’26n/a
CHF 484.84
0%
11.02%CHF 563.56CHF 347.80n/a51
Jul ’26n/a
CHF 414.10
0%
9.42%CHF 554.66CHF 342.30n/a51
Jun ’26n/a
CHF 419.52
0%
8.29%CHF 534.77CHF 353.66n/a52
May ’26n/a
CHF 416.46
0%
9.03%CHF 539.23CHF 348.42n/a51
Apr ’26n/a
CHF 444.82
0%
9.16%CHF 574.53CHF 366.81n/a53
Mar ’26n/a
CHF 456.72
0%
8.26%CHF 584.51CHF 377.69n/a51
Feb ’26n/a
CHF 462.24
0%
8.20%CHF 591.97CHF 382.50n/a51
Jan ’26n/a
CHF 457.85
0%
8.27%CHF 587.50CHF 379.61n/a50
Dec ’25n/a
CHF 442.93
0%
7.64%CHF 528.28CHF 369.79n/a50
Nov ’25n/a
CHF 437.43
0%
7.69%CHF 522.36CHF 365.65n/a50
Oct ’25n/a
CHF 424.59
0%
6.33%CHF 507.73CHF 372.34n/a50
Sep ’25n/a
CHF 422.01
0%
6.59%CHF 504.94CHF 370.29n/a51
Aug ’25n/a
CHF 436.24
0%
6.82%CHF 524.17CHF 375.39n/a52
Jul ’25CHF 4,000.00
CHF 443.21
-88.92%
7.80%CHF 541.83CHF 388.04n/a51
Jun ’25CHF 4,000.00
CHF 435.85
-89.10%
7.48%CHF 541.34CHF 360.62n/a52
May ’25CHF 4,000.00
CHF 439.00
-89.03%
7.23%CHF 551.48CHF 367.38n/a52
Apr ’25CHF 4,000.00
CHF 425.24
-89.37%
7.36%CHF 542.71CHF 361.54n/a53
Mar ’25CHF 4,000.00
CHF 411.26
-89.72%
7.39%CHF 529.94CHF 353.03n/a51
Feb ’25CHF 4,000.00
CHF 391.91
-90.20%
8.39%CHF 514.63CHF 317.35n/a49
Jan ’25CHF 4,000.00
CHF 351.03
-91.22%
9.74%CHF 506.46CHF 251.63n/a51
CHF 488.3
Fair Value
22.9% undervalued intrinsic discount
53
Number of Analysts

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2026/01/11 01:21
End of Day Share Price 2026/01/05 00:00
Earnings2025/09/30
Annual Earnings2025/06/30

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* Example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.

Analyst Sources

Microsoft Corporation is covered by 91 analysts. 51 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Kadambari DaptardarAccountability Research Corporation
Harshit GuptaAccountability Research Corporation
Adam ShepherdArete Research Services LLP