` Comparison: CHKP vs MSFT - Alpha Spread

CHKP
vs
MSFT

Over the past 12 months, CHKP has underperformed MSFT, delivering a return of -31% compared to the MSFT's +4% growth.

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CHKP
MSFT
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Valuation Comparison

CHKP Intrinsic Value
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MSFT Intrinsic Value
393.04 USD
Undervaluation 5%
Intrinsic Value
Price $373.46
Company Last Price Intrinsic Value DCF Value Multiples-Based Value Wall St Target
Check Point Software Technologies Ltd
NASDAQ:CHKP
148.23 USD
Microsoft Corp
NASDAQ:MSFT
373.46 USD
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Valuation Scenario:
Bear Case
Base Case
Bull Case

Growth Comparison

Growth Over Time
CHKP, MSFT

CHKP
MSFT
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Revenue
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Company LTM Historical Growth Growth Streak % Positive Years Max Drawdown Volatility Forecasted Growth
3 Years 5 Years 10 Years 1 Year 3 Years
Check Point Software Technologies Ltd
Revenue
Microsoft Corp
Revenue

All metrics are calculated based on data from the last 10 years.

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Profitability Comparison

Free Cash Flow
CHKP, MSFT

CHKP
MSFT
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Free Cash Flow
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Company LTM Average Historical Growth FCF Margin Conversion
3 Years 5 Years 3 Years 5 Years 10 Years
Check Point Software Technologies Ltd
NASDAQ:CHKP
Microsoft Corp
NASDAQ:MSFT
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What is Free Cash Flow?

Gross Margin

CHKP
86.7%
MSFT
68.6%

Operating Margin

CHKP
30.5%
MSFT
46.7%

Net Margin

CHKP
38.8%
MSFT
39%

FCF Margin

CHKP
43%
MSFT
25.3%

ROE

CHKP
37.3%
MSFT
34.4%

ROA

CHKP
15.6%
MSFT
19.9%

ROIC

CHKP
22.6%
MSFT
23.7%

ROCE

CHKP
17.2%
MSFT
29.7%

Solvency Comparison

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Balance Sheet Comparison
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Stocks Performance

Stocks Performance
CHKP, MSFT

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Performance Gap
CHKP, MSFT

Performance Gap Between CHKP and MSFT
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Performance By Year
CHKP, MSFT

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CHKP
MSFT
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Intrinsic Value is all-important and is the only logical way to evaluate the relative attractiveness of investments and businesses.

Warren Buffett