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Microsoft Corp
NASDAQ:MSFT

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Microsoft Corp
NASDAQ:MSFT
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Price: 424.62 USD 2.13% Market Closed
Market Cap: $3.2T

P/B

8.1
Current
26%
Cheaper
vs 3-y average of 10.9

Price to Book (P/B) ratio compares a company`s market value to its book value. It shows how much investors are paying for each dollar of net assets on the balance sheet.

P/B
8.1
=
Market Cap
$2.9T
/
Total Equity
$390.9B

Price to Book (P/B) ratio compares a company`s market value to its book value. It shows how much investors are paying for each dollar of net assets on the balance sheet.

P/B
8.1
=
Market Cap
$2.9T
/
Total Equity
$390.9B

Valuation Scenarios

Microsoft Corp is trading below its 3-year average

If P/B returns to its 3-Year Average (10.9), the stock would be worth $571.53 (35% upside from current price).

Statistics
Positive Scenarios
2/4
Maximum Downside
-69%
Maximum Upside
+43%
Average Downside
6%
Scenario P/B Value Implied Price Upside/Downside
Current Multiple 8.1 $424.62
0%
3-Year Average 10.9 $571.53
+35%
5-Year Average 11.5 $606.72
+43%
Industry Average 5.4 $286.28
-33%
Country Average 2.5 $132.26
-69%

Forward P/B
Today’s price vs future total equity

Not enough data available to calculate forward P/B

Peer Comparison

All Multiples
P/B
P/E
All Countries
Close
Market Cap P/B P/E
US
Microsoft Corp
NASDAQ:MSFT
3.2T USD 8.1 26.5
US
Oracle Corp
NYSE:ORCL
498.2B USD 12.9 30.8
US
Palo Alto Networks Inc
NASDAQ:PANW
145.7B USD 13.4 97.9
US
CrowdStrike Holdings Inc
NASDAQ:CRWD
113.5B USD 25.6 -698.7
US
ServiceNow Inc
NYSE:NOW
93.4B USD 8 53.2
US
VMware Inc
XETRA:BZF1
58B EUR 26.8 47.9
US
Fortinet Inc
NASDAQ:FTNT
62.7B USD 50.6 33.8
CN
Knowledge Atlas Technology JSC Ltd
HKEX:2513
452.6B HKD -48.7 -83.9
US
Xperi Holding Corp
LSE:0M2A
54.6B USD 113.7 491.7
CN
MiniMax Group Inc
HKEX:100
262.2B HKD -12.7 -17.9
US
Zscaler Inc
NASDAQ:ZS
21.8B USD 9.9 -321.7
P/E Multiple
Earnings Growth PEG
US
Microsoft Corp
NASDAQ:MSFT
Average P/E: 111.7
26.5
18%
1.5
US
Oracle Corp
NYSE:ORCL
30.8
37%
0.8
US
Palo Alto Networks Inc
NASDAQ:PANW
97.9
50%
2
US
CrowdStrike Holdings Inc
NASDAQ:CRWD
Negative Multiple: -698.7 N/A N/A
US
ServiceNow Inc
NYSE:NOW
53.2
54%
1
US
V
VMware Inc
XETRA:BZF1
47.9
39%
1.2
US
Fortinet Inc
NASDAQ:FTNT
33.8
15%
2.3
CN
K
Knowledge Atlas Technology JSC Ltd
HKEX:2513
Negative Multiple: -83.9 N/A N/A
US
Xperi Holding Corp
LSE:0M2A
491.7
N/A N/A
CN
MiniMax Group Inc
HKEX:100
Negative Multiple: -17.9 N/A N/A
US
Zscaler Inc
NASDAQ:ZS
Negative Multiple: -321.7 N/A N/A

Market Distribution

Higher than 82% of companies in the United States of America
Percentile
82nd
Based on 10 946 companies
82nd percentile
8.1
Low
0 — 1.5
Typical Range
1.5 — 4.8
High
4.8 —
Distribution Statistics
the United States of America
Min 0
30th Percentile 1.5
Median 2.5
70th Percentile 4.8
Max 147 580.5

Microsoft Corp
Glance View

In the dynamic world of technology, Microsoft Corp. has consistently positioned itself at the forefront of innovation and enterprise solutions since its founding in 1975 by Bill Gates and Paul Allen. Evolving from its initial foray into personal computing software, Microsoft engineered a transformation in the tech ecosystem with its Windows operating system. Today, it is a behemoth in various facets of the industry, from cloud computing with Azure to productivity software suites like Microsoft Office. Unlike the mythic tales of overnight success, Microsoft's ascent reflects strategic adaptability and foresight, crafting a narrative of calculated pivots and robust diversification. The company’s business model intricately weaves together a mélange of software products, services, and hardware. Its revenue streams are diversified across licensing fees, subscriptions, cloud services, and hardware sales. Azure, Microsoft's cloud platform, stands as a stalwart in the cloud computing arena, offering a multitude of services to enterprises, outpacing competitors through aggressive innovation and enterprise engagement. Meanwhile, the Office suite's transition to a subscription-based model underlines a shift toward a recurring revenue stream, which has fortified its financial stability. Microsoft's success isn’t merely rooted in software; its ventures into gaming with Xbox and acquisitions like LinkedIn signify a robust portfolio, leveraging a vast ecosystem to sustain growth and relevance across an array of markets.

MSFT Intrinsic Value
393.04 USD
Overvaluation 7%
Intrinsic Value
Price $424.62
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