MicroStrategy Incorporated

NasdaqGS:MSTR Stock Report

Market Cap: US$87.2b

MicroStrategy Valuation

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

Valuation Score

0/6

Valuation Score 0/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Book vs Peers

  • Price-To-Book vs Industry

  • Price-To-Book vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

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

Below Fair Value: MSTR ($430.54) is trading above our estimate of fair value ($208.47)

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

Key Valuation Metric

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

Key metric: As MSTR barely has revenue we use its Price-To-Book Ratio for relative valuation analysis.

The above table shows the Price to Book ratio for MSTR. This is calculated by dividing MSTR's market cap by their current book value.
What is MSTR's PB Ratio?
PB Ratio23.1x
BookUS$3.77b
Market CapUS$87.25b

Price to Book Ratio vs Peers

How does MSTR's PB Ratio compare to its peers?

The above table shows the PB ratio for MSTR vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PBEstimated GrowthMarket Cap
Peer Average14x
ADSK Autodesk
26.5x15.7%US$65.6b
ROP Roper Technologies
3.2x10.7%US$58.8b
WDAY Workday
8.2x13.4%US$68.6b
CDNS Cadence Design Systems
18x16.4%US$82.2b
MSTR MicroStrategy
23.1x88.8%US$87.2b

Price-To-Book vs Peers: MSTR is expensive based on its Price-To-Book Ratio (23.1x) compared to the peer average (14x).

Price to Book Ratio vs Industry

How does MSTR's PB Ratio compare vs other companies in the US Software Industry?

35 CompaniesPrice / BookEstimated GrowthMarket Cap
ETWO E2open Parent Holdings
0.6x75.4%US$1.01b
API Agora
0.6x41.6%US$377.10m
CMCM Cheetah Mobile
0.4xn/aUS$128.60m
APPS Digital Turbine
0.7x104.2%US$125.51m
MSTR 23.1xIndustry Avg. 3.4xNo. of Companies35PB03.26.49.612.816+
35 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Book vs Industry: MSTR is expensive based on its Price-To-Book Ratio (23.1x) compared to the US Software industry average (3.4x).

Price to Book Ratio vs Fair Ratio

What is MSTR's PB Ratio compared to its Fair PB Ratio? This is the expected PB Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

MSTR PB Ratio vs Fair Ratio.
Fair Ratio
Current PB Ratio23.1x
Fair PB Ration/a

Price-To-Book vs Fair Ratio: Insufficient data to calculate MSTR's Price-To-Book 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 MSTR forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$430.54
US$310.12
-28.0%
21.4%US$450.00US$212.11n/a9
Nov ’25US$229.71
US$278.47
+21.2%
14.6%US$312.00US$169.21n/a9
Oct ’25US$162.69
US$199.13
+22.4%
17.6%US$289.00US$169.21n/a9
Sep ’25US$132.42
US$201.65
+52.3%
17.5%US$289.00US$169.21n/a8
Aug ’25US$151.18
US$195.98
+29.6%
19.8%US$289.00US$161.27n/a7
Jul ’25US$136.60
US$195.98
+43.5%
19.8%US$289.00US$161.27n/a7
Jun ’25US$152.45
US$175.69
+15.2%
11.8%US$204.70US$145.00n/a5
May ’25US$102.83
US$131.08
+27.5%
41.1%US$187.50US$53.70n/a6
Apr ’25US$163.67
US$103.00
-37.1%
44.6%US$181.00US$53.70n/a6
Mar ’25US$107.94
US$79.42
-26.4%
21.6%US$99.00US$53.70n/a6
Feb ’25US$50.35
US$62.86
+24.9%
15.6%US$79.10US$53.70n/a5
Jan ’25US$63.16
US$66.95
+6.0%
13.5%US$79.10US$53.70n/a4
Dec ’24US$52.77
US$54.73
+3.7%
4.0%US$56.50US$51.00n/a4
Nov ’24US$42.67
US$45.66
+7.0%
22.7%US$52.00US$25.00US$229.715
Oct ’24US$32.83
US$44.86
+36.7%
26.7%US$52.00US$21.00US$162.695
Sep ’24US$35.15
US$44.86
+27.6%
26.7%US$52.00US$21.00US$132.425
Aug ’24US$43.50
US$42.60
-2.1%
27.2%US$52.00US$21.00US$151.185
Jul ’24US$34.24
US$33.67
-1.7%
33.1%US$43.00US$18.00US$136.603
Jun ’24US$29.99
US$33.67
+12.2%
33.1%US$43.00US$18.00US$152.453
May ’24US$30.75
US$33.67
+9.5%
33.1%US$43.00US$18.00US$102.833
Apr ’24US$29.23
US$28.00
-4.2%
42.9%US$40.00US$16.00US$163.672
Mar ’24US$25.79
US$28.00
+8.6%
42.9%US$40.00US$16.00US$107.942
Feb ’24US$26.79
US$25.35
-5.4%
46.7%US$37.20US$13.50US$50.352
Jan ’24US$14.16
US$47.73
+237.2%
73.5%US$95.00US$11.00US$63.163
Dec ’23US$19.90
US$48.73
+144.9%
69.9%US$95.00US$14.00US$52.773
Nov ’23US$25.72
US$49.90
+94.0%
65.9%US$95.00US$17.50US$42.673

Analyst Forecast: Target price is lower than the current share price.

Discover undervalued companies

Dye & Durham

CA$1.1b

Provides cloud-based software and technology solutions for law firms, financial service institutions, sole-practitioner law firms, and government organizations in Canada, Australia, South Africa, Ireland, and the United Kingdom.

DYND.F

CA$12.89

7D

-1.4%

1Y

35.5%

Capgemini

€26.8b

Engages in the provision of consulting, digital transformation, technology, and engineering services primarily in North America, France, the United Kingdom, Ireland, the rest of Europe, the Asia-Pacific, and Latin America.

CAPM.F

€163.10

7D

-4.5%

1Y

-15.8%

Amdocs

US$9.6b

Through its subsidiaries, provides software and services worldwide.

DOX

US$82.94

7D

-10.5%

1Y

-0.7%