Microsoft Corporation

SNSE:MSFTCL Stock Report

Market Cap: CL$3031.2t

Microsoft Valuation

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

Valuation Score

2/6

Valuation Score 2/6

  • 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 (CLP407500) is trading below our estimate of fair value (CLP457487.69)

Significantly Below Fair Value: MSFTCL is trading below fair value, but not by a significant amount.

Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

MSFTCL 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/Revenue13.4x
Enterprise Value/EBITDA25.4x
PEG Ratio2.9x

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 Average74.6x
ORCL Oracle
42.4x16.3%US$464.4b
NOW ServiceNow
168.4x22.4%US$189.2b
PANW Palo Alto Networks
43x-2.5%US$108.6b
FTNT Fortinet
44.7x12.4%US$57.9b
MSFTCL Microsoft
36.7x12.5%CL$3.3t

Price-To-Earnings vs Peers: MSFTCL is good value based on its Price-To-Earnings Ratio (36.7x) compared to the peer average (74.6x).

Price to Earnings Ratio vs Industry

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

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a17.8%
 n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a17.8%
 n/an/an/a
No more companies

Price-To-Earnings vs Industry: MSFTCL is expensive based on its Price-To-Earnings Ratio (36.7x) compared to the Global Software industry average (30.6x).

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 Ratio36.7x
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$407,500.00
CL$466,419.18
+14.5%
6.3%CL$557,748.00CL$409,015.20n/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$258,667.33n/a50
Nov ’24CL$314,714.00
CL$360,922.89
+14.7%
6.6%CL$402,750.00CL$266,799.50n/a50
Oct ’24CL$286,708.00
CL$355,980.28
+24.2%
7.4%CL$397,859.00CL$269,549.47n/a49
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
Nov ’23CL$213,730.00
CL$284,578.42
+33.1%
11.0%CL$389,303.31CL$241,538.55CL$314,714.0042
Oct ’23CL$233,000.00
CL$321,717.11
+38.1%
9.1%CL$396,113.58CL$270,359.57CL$286,708.0042
Sep ’23CL$253,169.00
CL$295,654.85
+16.8%
9.2%CL$364,232.31CL$248,599.63CL$281,820.0042

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

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