Microsoft Corp
NASDAQ:MSFT

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Microsoft Corp
NASDAQ:MSFT
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Price: 436.85 USD 0.36%
Market Cap: 3.2T USD

Relative Value

The Relative Value of one MSFT stock under the Base Case scenario is 359.92 USD. Compared to the current market price of 436.85 USD, Microsoft Corp is Overvalued by 18%.

Relative Value is the estimated value of a stock based on various valuation multiples like P/E and EV/EBIT ratios. It offers a quick snapshot of a stock's valuation in relation to its peers and historical norms.

MSFT Relative Value
Base Case
359.92 USD
Overvaluation 18%
Relative Value
Price
Worst Case
Base Case
Best Case

Valuation Multiples

vs History
30
vs Industry
10
Median 3Y
11.7
Median 5Y
11.6
Industry
2.3
Forward
11.5
vs History
42
vs Industry
19
Median 3Y
33
Median 5Y
32.9
Industry
22.3
Forward
32.7
vs History
57
vs Industry
25
Median 3Y
25.3
Median 5Y
25.3
Industry
16.8
vs History
9
vs Industry
10
Median 3Y
37.3
Median 5Y
39
Industry
21.1
vs History
85
vs Industry
11
Median 3Y
11.5
Median 5Y
12.1
Industry
2.8
vs History
26
vs Industry
10
Median 3Y
11.5
Median 5Y
11.3
Industry
2.3
Forward
11.5
vs History
26
vs Industry
14
Median 3Y
16.8
Median 5Y
16.4
Industry
4.7
vs History
66
vs Industry
22
Median 3Y
21.9
Median 5Y
22.4
Industry
12.2
Forward
20.7
vs History
57
vs Industry
20
Median 3Y
26.2
Median 5Y
26.9
Industry
16
Forward
25.5
vs History
50
vs Industry
24
Median 3Y
25
Median 5Y
24.8
Industry
15.2
vs History
0
vs Industry
13
Median 3Y
41.2
Median 5Y
35.9
Industry
18.4
vs History
87
vs Industry
15
Median 3Y
7.7
Median 5Y
8.4
Industry
2.3

Multiples Across Competitors

MSFT Competitors Multiples
Microsoft Corp Competitors

Market Cap P/S P/E EV/EBITDA EV/EBIT
US
Microsoft Corp
NASDAQ:MSFT
3.2T USD 12 33.5 21.3 26.5
US
Oracle Corp
NYSE:ORCL
421.3B USD 7.6 34.7 20.7 27.8
US
ServiceNow Inc
NYSE:NOW
204B USD 17.6 131.5 94.9 133
US
Palo Alto Networks Inc
NASDAQ:PANW
125.3B USD 14.5 98.8 88.3 115.5
US
CrowdStrike Holdings Inc
NASDAQ:CRWD
111.2B USD 27.6 -5 666.9 1 097.7 -897.2
US
Fortinet Inc
NASDAQ:FTNT
81.4B USD 13.7 46.7 40 42.7
US
VMware Inc
XETRA:BZF1
58B EUR 4.8 46 21.2 35.9
US
Xperi Holding Corp
LSE:0M2A
54.6B USD 145.2 845.1 255.6 386.3
US
Zscaler Inc
NASDAQ:ZS
36.1B USD 14.7 -2 296.3 -36 796.9 -336.7
IL
Check Point Software Technologies Ltd
NASDAQ:CHKP
23.9B USD 9.1 27.6 22.9 25.2
IL
Cyberark Software Ltd
NASDAQ:CYBR
17.7B USD 17.8 -188.9 -546.4 -231.3
P/E Multiple
Earnings Growth PEG
US
Microsoft Corp
NASDAQ:MSFT
Average P/E: 158
33.5
15%
2.2
US
Oracle Corp
NYSE:ORCL
34.7
30%
1.2
US
ServiceNow Inc
NYSE:NOW
131.5
53%
2.5
US
Palo Alto Networks Inc
NASDAQ:PANW
98.8
4%
24.7
US
CrowdStrike Holdings Inc
NASDAQ:CRWD
Negative Multiple: -5 666.9 N/A N/A
US
Fortinet Inc
NASDAQ:FTNT
46.7
15%
3.1
US
V
VMware Inc
XETRA:BZF1
46
39%
1.2
US
Xperi Holding Corp
LSE:0M2A
845.1
N/A N/A
US
Zscaler Inc
NASDAQ:ZS
Negative Multiple: -2 296.3 N/A N/A
IL
Check Point Software Technologies Ltd
NASDAQ:CHKP
27.6
16%
1.7
IL
Cyberark Software Ltd
NASDAQ:CYBR
Negative Multiple: -188.9 N/A N/A
EV/EBITDA Multiple
EBITDA Growth EV/EBITDA to Growth
US
Microsoft Corp
NASDAQ:MSFT
Average EV/EBITDA: 184.8
21.3
15%
1.4
US
Oracle Corp
NYSE:ORCL
20.7
24%
0.9
US
ServiceNow Inc
NYSE:NOW
94.9
54%
1.8
US
Palo Alto Networks Inc
NASDAQ:PANW
88.3
49%
1.8
US
CrowdStrike Holdings Inc
NASDAQ:CRWD
1 097.7
179%
6.1
US
Fortinet Inc
NASDAQ:FTNT
40
18%
2.2
US
V
VMware Inc
XETRA:BZF1
21.2
19%
1.1
US
Xperi Holding Corp
LSE:0M2A
255.6
N/A N/A
US
Zscaler Inc
NASDAQ:ZS
Negative Multiple: -36 796.9 N/A N/A
IL
Check Point Software Technologies Ltd
NASDAQ:CHKP
22.9
12%
1.9
IL
Cyberark Software Ltd
NASDAQ:CYBR
Negative Multiple: -546.4 N/A N/A
EV/EBIT Multiple
EBIT Growth EV/EBIT to Growth
US
Microsoft Corp
NASDAQ:MSFT
Average EV/EBIT: 99.1
26.5
15%
1.8
US
Oracle Corp
NYSE:ORCL
27.8
28%
1
US
ServiceNow Inc
NYSE:NOW
133
64%
2.1
US
Palo Alto Networks Inc
NASDAQ:PANW
115.5
60%
1.9
US
CrowdStrike Holdings Inc
NASDAQ:CRWD
Negative Multiple: -897.2 N/A N/A
US
Fortinet Inc
NASDAQ:FTNT
42.7
18%
2.4
US
V
VMware Inc
XETRA:BZF1
35.9
30%
1.2
US
Xperi Holding Corp
LSE:0M2A
386.3
N/A N/A
US
Zscaler Inc
NASDAQ:ZS
Negative Multiple: -336.7 N/A N/A
IL
Check Point Software Technologies Ltd
NASDAQ:CHKP
25.2
14%
1.8
IL
Cyberark Software Ltd
NASDAQ:CYBR
Negative Multiple: -231.3 N/A N/A