Microsoft Corporation

BATS-CHIXE:MSFD Stock Report

Market Cap: €2.9t

Microsoft Valuation

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

Valuation Score

6/6

Valuation Score 6/6

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

Below Fair Value: MSFD (€393.3) is trading below our estimate of fair value (€499.35)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for MSFD. This is calculated by dividing MSFD's market cap by their current earnings.
What is MSFD's PE Ratio?
PE Ratio34.1x
EarningsUS$90.51b
Market CapUS$3.09t

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for MSFD vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average72.9x
ORCL Oracle
46.9x16.5%US$509.2b
NOW ServiceNow
155.3x21.7%US$208.7b
SGE Sage Group
40.3x14.9%UK£10.8b
PANW Palo Alto Networks
49.1x-2.3%US$126.6b
MSFD Microsoft
34.1x12.5%€3.1t

Price-To-Earnings vs Peers: MSFD is good value based on its Price-To-Earnings Ratio (34.1x) compared to the peer average (72.9x).

Price to Earnings Ratio vs Industry

How does MSFD's PE Ratio compare vs other companies in the GB Software Industry?

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
SORT Sorted Group Holdings
3.1xn/aUS$5.54m
No more companies available in this PE range
No. of Companies5PE020406080100+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: MSFD is good value based on its Price-To-Earnings Ratio (34.1x) compared to the UK Software industry average (35.3x).

Price to Earnings Ratio vs Fair Ratio

What is MSFD'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.

MSFD PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio34.1x
Fair PE Ratio98.5x

Price-To-Earnings vs Fair Ratio: MSFD is good value based on its Price-To-Earnings Ratio (34.1x) compared to the estimated Fair Price-To-Earnings Ratio (98.5x).

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 MSFD forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€393.30
€479.48
+21.9%
7.6%€569.94€398.96n/a48
Nov ’25€376.20
€465.32
+23.7%
7.6%€553.68€387.58n/a48
Oct ’25€387.30
€451.73
+16.6%
6.3%€540.18€396.13n/a50
Sep ’25€376.55
€448.05
+19.0%
6.6%€536.10€393.14n/a51
Aug ’25€390.25
€462.74
+18.6%
6.8%€556.02€398.20n/a52
Jul ’25€416.95
€459.53
+10.2%
7.8%€561.78€402.33n/a51
Jun ’25€375.25
€444.77
+18.5%
7.5%€552.42€368.00n/a52
May ’25€374.10
€447.43
+19.6%
7.2%€562.08€374.44n/a52
Apr ’25€389.05
€437.69
+12.5%
7.4%€558.60€372.12n/a53
Mar ’25€376.90
€430.33
+14.2%
7.4%€554.52€369.40n/a51
Feb ’25€370.80
€420.37
+13.4%
8.4%€552.00€340.40n/a49
Jan ’25€337.30
€374.49
+11.0%
9.7%€540.30€268.44n/a51
Dec ’24€347.45
€370.24
+6.6%
6.9%€432.39€271.36n/a50
Nov ’24€320.35
€381.05
+18.9%
6.6%€425.21€281.67€376.2050
Oct ’24€297.65
€372.51
+25.1%
7.4%€416.33€282.06€387.3049
Sep ’24€302.20
€357.04
+18.1%
10.0%€403.30€212.65€376.5549
Aug ’24€304.65
€355.29
+16.6%
9.7%€409.73€211.24€390.2550
Jul ’24n/a
€318.50
0%
10.9%€412.65€212.74€416.9546
Jun ’24n/a
€319.70
0%
10.7%€421.07€217.08€375.2547
May ’24€267.45
€302.13
+13.0%
9.3%€382.83€211.47€374.1048
Apr ’24n/a
€274.80
0%
12.2%€387.20€195.44€389.0547
Mar ’24n/a
€275.78
0%
11.2%€387.74€200.00€376.9047
Feb ’24n/a
€263.20
0%
11.5%€378.08€195.02€370.8047
Jan ’24n/a
€279.21
0%
11.4%€386.59€220.10€337.3045
Dec ’23n/a
€296.27
0%
11.5%€410.01€233.44€347.4544
Nov ’23n/a
€304.16
0%
11.0%€416.10€258.16€320.3542

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

Discover undervalued companies

RingCentral

US$3.2b

Provides cloud communications, video meetings, collaboration, and contact center software-as-a-service solutions worldwide.

0V50

US$34.34

7D

-7.5%

1Y

12.4%

Kontron

€1.1b

Engages in the provision of internet of things (IoT) solutions in Austria and internationally.

0L9J

€17.34

7D

-3.8%

1Y

-21.2%

Computacenter

UK£2.3b

Provides technology and services to corporate and public sector organizations in the United Kingdom, Germany, France, North America, and internationally.

CCC

UK£22.20

7D

0.8%

1Y

-19.2%