Microsoft Corporation

DB:MSF Stock Report

Market Cap: €3.2t

Microsoft Valuation

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

Valuation Score

2/6

Valuation Score 2/6

  • Below Future Cash Flow Value

  • Significantly Below Future Cash Flow 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 MSF 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 Future Cash Flow Value: MSF (€424.35) is trading below our estimate of future cash flow value (€464.69)

Significantly Below Future Cash Flow Value: MSF is trading below future cash flow value, but not by a significant amount.

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for MSF. This is calculated by dividing MSF's market cap by their current earnings.
What is MSF's PE Ratio?
PE Ratio27.3x
EarningsUS$133.75b
Market CapUS$3.66t

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for MSF vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average25.8x
SAP SAP
26.3x11.70%€205.5b
ORCL Oracle
25.9x24.37%US$465.6b
IVU IVU Traffic Technologies
28.7x14.24%€431.5m
IXX init innovation in traffic systems
22.3x27.03%€482.3m
MSF Microsoft
27.3x14.03%€3.7t

Price-To-Earnings vs Peers: MSF is expensive based on its Price-To-Earnings Ratio (27.3x) compared to the peer average (25.8x).

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 MSF's PE Ratio compare vs other companies in the DE Software Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
No more companies available in this PE range
MSF 27.3xIndustry Avg. 22.3xNo. of Companies5PE020406080100+
0 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: MSF is expensive based on its Price-To-Earnings Ratio (27.3x) compared to the European Software industry average (22.3x).

Price to Earnings Ratio vs Fair Ratio

What is MSF'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.

MSF PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio27.3x
Fair PE Ratio46x

Price-To-Earnings vs Fair Ratio: MSF is good value based on its Price-To-Earnings Ratio (27.3x) compared to the estimated Fair Price-To-Earnings Ratio (46x).

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 MSF forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€424.35
€493.68
+16.34%
12.68%€749.68€344.68n/a52
Sep ’27€431.90
€493.04
+14.16%
13.01%€750.72€345.16n/a52
Aug ’27€404.45
€487.94
+20.64%
12.43%€754.20€346.76n/a54
Jul ’27€338.65
€491.09
+45.01%
13.16%€761.42€350.08n/a55
Jun ’27€397.00
€482.42
+21.52%
13.17%€748.29€344.04n/a55
May ’27€349.25
€478.42
+36.98%
11.71%€622.91€341.32n/a53
Apr ’27€318.75
€508.14
+59.42%
11.89%€631.60€339.16n/a54
Mar ’27€332.60
€504.15
+51.58%
10.51%€617.51€331.59n/a53
Feb ’27€362.50
€506.20
+39.64%
8.87%€615.54€379.44n/a54
Jan ’27€413.20
€530.01
+28.27%
8.04%€621.52€411.23n/a53
Dec ’26€420.05
€538.73
+28.25%
7.84%€628.82€416.06n/a52
Nov ’26€448.85
€543.42
+21.07%
7.42%€633.28€419.00n/a52
Oct ’26€442.05
€526.23
+19.04%
8.12%€605.06€411.61n/a51
Sep ’26€431.20
€526.61
+22.13%
8.15%€598.43€412.92€431.9050
Aug ’26€453.60
€520.07
+14.65%
11.02%€604.52€373.08€404.4551
Jul ’26€417.50
€443.28
+6.17%
9.42%€593.74€366.42€338.6551
Jun ’26€406.50
€449.13
+10.49%
8.29%€572.52€378.62€397.0052
May ’26€344.10
€444.63
+29.21%
9.03%€575.71€371.99€349.2551
Apr ’26€353.90
€466.46
+31.81%
9.16%€602.49€384.66€318.7553
Mar ’26€379.05
€488.24
+28.81%
8.26%€624.85€403.75€332.6051
Feb ’26€401.55
€489.64
+21.94%
8.20%€627.06€405.17€362.5051
Jan ’26€408.60
€487.01
+19.19%
8.27%€624.91€403.79€413.2050
Dec ’25€400.00
€475.40
+18.85%
7.64%€567.00€396.90€420.0550
Nov ’25€379.10
€463.65
+22.30%
7.69%€553.68€387.58€448.8550
Oct ’25€380.45
€453.28
+19.14%
6.33%€542.04€397.50€442.0550
Sep ’25€376.50
€448.35
+19.08%
6.59%€536.46€393.40€431.2051
€493.7
Fair Value
14.0% undervalued intrinsic discount
52
Number of Analysts

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 Analysis2026/09/11 07:40
End of Day Share Price 2026/09/10 00:00
Earnings2026/06/30
Annual Earnings2026/06/30

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 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 84 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
Adam ShepherdArete Research Services LLP
Joseph BonnerArgus Research Company