Microsoft Corp
NASDAQ:MSFT
Decide at what price you'd be comfortable buying and we'll help you stay ready.
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P/S
Price to Sales (P/S) ratio shows how much investors pay for each dollar of a company`s sales. It`s calculated by dividing the company`s market value by its total revenue.
Price to Sales (P/S) ratio shows how much investors pay for each dollar of a company`s sales. It`s calculated by dividing the company`s market value by its total revenue.
Valuation Scenarios
If P/S returns to its 3-Year Average (12), the stock would be worth $492.61 (16% upside from current price).
| Scenario | P/S Value | Implied Price | Upside/Downside |
|---|---|---|---|
| Current Multiple | 10.3 | $424.82 |
0%
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| 3-Year Average | 12 | $492.61 |
+16%
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| 5-Year Average | 11.8 | $484.24 |
+14%
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| Industry Average | 4.2 | $171.36 |
-60%
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| Country Average | 2.4 | $100.14 |
-76%
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Forward P/S
Today’s price vs future revenue
| Today's Market Cap | Revenue | Forward P/S | ||
|---|---|---|---|---|
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$2.9T
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/ |
Jan 2026
$305.5B
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= |
|
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$2.9T
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/ |
Jun 2026
$334.6B
|
= |
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|
$2.9T
|
/ |
Jun 2027
$387.2B
|
= |
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$2.9T
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/ |
Jun 2028
$450.1B
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= |
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$2.9T
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/ |
Jun 2029
$519.4B
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= |
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$2.9T
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/ |
Jun 2030
$591.5B
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= |
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$2.9T
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/ |
Jun 2031
$656.6B
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= |
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|
$2.9T
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/ |
Jun 2032
$689.4B
|
= |
|
|
$2.9T
|
/ |
Jun 2033
$759.5B
|
= |
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Forward P/S shows whether today’s P/S still looks high or low once future revenue are taken into account.
Peer Comparison
| Market Cap | P/S | P/E | ||||
|---|---|---|---|---|---|---|
| US |
|
Microsoft Corp
NASDAQ:MSFT
|
3.2T USD | 10.3 | 26.5 | |
| US |
|
Oracle Corp
NYSE:ORCL
|
497.3B USD | 7.8 | 30.7 | |
| US |
|
Palo Alto Networks Inc
NASDAQ:PANW
|
149.2B USD | 13 | 100.3 | |
| US |
|
CrowdStrike Holdings Inc
NASDAQ:CRWD
|
115.2B USD | 23.9 | -708.8 | |
| US |
|
ServiceNow Inc
NYSE:NOW
|
93.7B USD | 6.7 | 53.3 | |
| US |
V
|
VMware Inc
XETRA:BZF1
|
58B EUR | 5 | 47.9 | |
| US |
|
Fortinet Inc
NASDAQ:FTNT
|
63.7B USD | 9.4 | 34.3 | |
| US |
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Xperi Holding Corp
LSE:0M2A
|
54.6B USD | 123.2 | 491.7 | |
| CN |
K
|
Knowledge Atlas Technology JSC Ltd
HKEX:2513
|
402.6B HKD | 484.4 | -74.7 | |
| CN |
|
MiniMax Group Inc
HKEX:100
|
229.1B HKD | 370.4 | -15.6 | |
| US |
|
Zscaler Inc
NASDAQ:ZS
|
21.5B USD | 7.2 | -318.4 |
Market Distribution
| Min | 0 |
| 30th Percentile | 1.2 |
| Median | 2.4 |
| 70th Percentile | 4.1 |
| Max | 4 613 274.2 |
Other Multiples
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.