Microsoft Corporation

SNSE:MSFTCL Stock Report

Market Cap: CL$3210.8t

Microsoft Valuation

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

Valuation Score

1/6

Valuation Score 1/6

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

Below Fair Value: MSFTCL (CLP437879) is trading above our estimate of fair value (CLP434720.85)

Significantly Below Fair Value: MSFTCL is trading above our estimate of fair value.

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for MSFTCL. This is calculated by dividing MSFTCL's market cap by their current earnings.
What is MSFTCL's PE Ratio?
PE Ratio35.9x
EarningsUS$90.51b
Market CapUS$3.25t

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for MSFTCL vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average75.7x
ORCL Oracle
40.8x16.6%US$474.5b
NOW ServiceNow
168.5x22.1%US$225.1b
PANW Palo Alto Networks
44.8x-3.5%US$122.6b
FTNT Fortinet
48.7x10.6%US$74.5b
MSFTCL Microsoft
35.9x12.6%CL$3.2t

Price-To-Earnings vs Peers: MSFTCL is good value based on its Price-To-Earnings Ratio (35.9x) compared to the peer average (75.7x).

Price to Earnings Ratio vs Industry

How does MSFTCL's PE Ratio compare vs other companies in the Global Software Industry?

36 CompaniesPrice / EarningsEstimated GrowthMarket Cap
MSFTCL 35.9xIndustry Avg. 31.7xNo. of Companies81PE020406080100+
36 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: MSFTCL is expensive based on its Price-To-Earnings Ratio (35.9x) compared to the Global Software industry average (31.7x).

Price to Earnings Ratio vs Fair Ratio

What is MSFTCL'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.

MSFTCL PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio35.9x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate MSFTCL'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 MSFTCL forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentCL$437,879.00
CL$503,266.09
+14.9%
8.1%CL$644,572.50CL$416,493.00n/a48
Dec ’25CL$413,907.00
CL$494,109.88
+19.4%
7.5%CL$587,178.00CL$411,024.60n/a48
Nov ’25CL$420,026.00
CL$484,485.00
+15.3%
7.6%CL$576,480.00CL$403,536.00n/a48
Oct ’25CL$385,000.00
CL$458,290.79
+19.0%
6.3%CL$548,028.00CL$401,887.20n/a50
Sep ’25CL$379,326.00
CL$455,984.96
+20.2%
6.6%CL$545,598.00CL$400,105.20n/a51
Aug ’25CL$422,110.00
CL$475,580.62
+12.7%
6.8%CL$571,446.00CL$409,250.58n/a52
Jul ’25CL$428,980.00
CL$466,832.06
+8.8%
7.8%CL$570,708.00CL$408,722.05n/a51
Jun ’25CL$373,962.00
CL$433,288.25
+15.9%
7.5%CL$538,158.00CL$358,502.92n/a52
May ’25CL$383,024.00
CL$457,476.55
+19.4%
7.2%CL$574,698.00CL$382,844.65n/a52
Apr ’25CL$418,980.00
CL$463,025.09
+10.5%
7.4%CL$590,940.00CL$393,664.53n/a53
Mar ’25CL$400,773.00
CL$451,449.86
+12.6%
7.4%CL$581,730.00CL$387,529.14n/a51
Feb ’25CL$380,003.00
CL$425,893.98
+12.1%
8.4%CL$559,248.00CL$344,869.60n/a49
Jan ’25CL$322,970.00
CL$367,124.49
+13.7%
9.7%CL$529,674.00CL$263,159.70n/a51
Dec ’24CL$331,542.00
CL$352,924.11
+6.4%
6.9%CL$412,167.00CL$258,667.33CL$413,907.0050
Nov ’24CL$314,714.00
CL$360,922.89
+14.7%
6.6%CL$402,750.00CL$266,799.50CL$420,026.0050
Oct ’24CL$286,708.00
CL$355,980.28
+24.2%
7.4%CL$397,859.00CL$269,549.47CL$385,000.0049
Sep ’24CL$281,820.00
CL$333,610.22
+18.4%
10.0%CL$376,842.40CL$198,698.72CL$379,326.0049
Aug ’24CL$280,110.00
CL$328,012.04
+17.1%
9.7%CL$378,270.00CL$195,019.20CL$422,110.0050
Jul ’24CL$269,590.00
CL$279,921.53
+3.8%
10.9%CL$362,673.00CL$186,978.08CL$428,980.0046
Jun ’24CL$267,510.00
CL$276,671.87
+3.4%
10.7%CL$364,396.50CL$187,866.64CL$373,962.0047
May ’24CL$240,000.00
CL$267,327.19
+11.4%
9.3%CL$338,730.00CL$187,108.00CL$383,024.0048
Apr ’24CL$223,300.00
CL$237,625.30
+6.4%
12.2%CL$334,824.00CL$169,006.40CL$418,980.0047
Mar ’24CL$208,869.00
CL$236,059.57
+13.0%
11.2%CL$331,886.61CL$171,192.12CL$400,773.0047
Feb ’24CL$198,220.00
CL$227,795.27
+14.9%
11.5%CL$327,221.76CL$168,785.92CL$380,003.0047
Jan ’24CL$205,610.00
CL$260,430.19
+26.7%
11.4%CL$360,586.74CL$205,297.56CL$322,970.0045
Dec ’23CL$224,175.00
CL$272,269.70
+21.5%
11.5%CL$376,796.58CL$214,526.52CL$331,542.0044

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

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2024/12/22 01:42
End of Day Share Price 2024/12/20 00:00
Earnings2024/09/30
Annual Earnings2024/06/30

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 here.

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 .

Analyst Sources

Microsoft Corporation is covered by 99 analysts. 52 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

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