Microsoft Corporation

BIT:1MSFT Stock Report

Market Cap: €2.5t

Microsoft Valuation

Is 1MSFT undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

  • 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 Future Cash Flow Value

What is the Fair Price of 1MSFT when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Ultimate guide to DCF valuation for stock investing

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

Below Future Cash Flow Value: 1MSFT (€339.95) is trading below our estimate of future cash flow value (€391.49)

Significantly Below Future Cash Flow Value: 1MSFT 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 1MSFT?

Key metric: As 1MSFT is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 1MSFT. This is calculated by dividing 1MSFT's market cap by their current earnings.
What is 1MSFT's PE Ratio?
PE Ratio24.9x
EarningsUS$119.26b
Market CapUS$2.97t

Price to Earnings Ratio vs Peers

How does 1MSFT's PE Ratio compare to its peers?

The above table shows the PE ratio for 1MSFT vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average55x
ORCL Oracle
28x23.00%US$425.0b
PANW Palo Alto Networks
95.1x21.12%US$118.2b
NOW ServiceNow
65.4x21.78%US$109.0b
FTNT Fortinet
31.6x9.21%US$57.2b
1MSFT Microsoft
24.9x13.09%€3.0t

Price-To-Earnings vs Peers: 1MSFT is good value based on its Price-To-Earnings Ratio (24.9x) compared to the peer average (53.3x).

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 1MSFT's PE Ratio compare vs other companies in the European Software Industry?

8 CompaniesPrice / EarningsEstimated GrowthMarket Cap
1MSFT 24.9xIndustry Avg. 23.2xNo. of Companies23PE020406080100+
8 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 1MSFT is expensive based on its Price-To-Earnings Ratio (24.9x) compared to the European Software industry average (23.2x).

Price to Earnings Ratio vs Fair Ratio

What is 1MSFT'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.

1MSFT PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio24.9x
Fair PE Ratio47.8x

Price-To-Earnings vs Fair Ratio: 1MSFT is good value based on its Price-To-Earnings Ratio (24.9x) compared to the estimated Fair Price-To-Earnings Ratio (47.8x).

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 1MSFT forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€339.95
€506.06
+48.86%
10.51%€619.84€332.85n/a53
Feb ’27€362.75
€506.20
+39.54%
8.87%€615.54€379.44n/a54
Jan ’27€415.65
€530.01
+27.51%
8.04%€621.52€411.23n/a53
Dec ’26€420.00
€538.73
+28.27%
7.84%€628.82€416.06n/a52
Nov ’26€448.85
€543.42
+21.07%
7.42%€633.28€419.00n/a52
Oct ’26€439.45
€526.23
+19.75%
8.12%€605.06€411.61n/a51
Sep ’26€432.50
€526.61
+21.76%
8.15%€598.43€412.92n/a50
Aug ’26€453.05
€520.07
+14.79%
11.02%€604.52€373.08n/a51
Jul ’26€419.00
€443.28
+5.79%
9.42%€593.74€366.42n/a51
Jun ’26€404.30
€449.13
+11.09%
8.29%€572.52€378.62n/a52
May ’26€344.55
€444.63
+29.05%
9.03%€575.71€371.99n/a51
Apr ’26€352.95
€466.46
+32.16%
9.16%€602.49€384.66n/a53
Mar ’26€375.30
€488.24
+30.09%
8.26%€624.85€403.75n/a51
Feb ’26€400.30
€489.64
+22.32%
8.20%€627.06€405.17€362.7551
Jan ’26€409.65
€487.01
+18.88%
8.27%€624.91€403.79€415.6550
Dec ’25€400.75
€475.40
+18.63%
7.64%€567.00€396.90€420.0050
Nov ’25€382.25
€463.65
+21.30%
7.69%€553.68€387.58€448.8550
Oct ’25€380.65
€453.28
+19.08%
6.33%€542.04€397.50€439.4550
Sep ’25€375.20
€448.35
+19.50%
6.59%€536.46€393.40€432.5051
Aug ’25€388.05
€462.74
+19.25%
6.82%€556.02€398.20€453.0552
Jul ’25€421.45
€457.08
+8.45%
7.80%€558.78€400.18€419.0051
Jun ’25€375.35
€445.30
+18.64%
7.48%€553.08€368.44€404.3052
May ’25€372.35
€446.72
+19.97%
7.23%€561.18€373.84€344.5552
Apr ’25€389.05
€437.69
+12.50%
7.36%€558.60€372.12€352.9553
Mar ’25€381.60
€429.68
+12.60%
7.39%€553.68€368.84€375.3051
Feb ’25€372.30
€420.37
+12.91%
8.39%€552.00€340.40€400.3049
€505.76
Fair Value
32.8% 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 Analysis2026/02/26 01:20
End of Day Share Price 2026/02/26 00:00
Earnings2025/12/31
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 96 analysts. 53 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