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Microsoft Corp
NASDAQ:MSFT

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Microsoft Corp
NASDAQ:MSFT
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Price: 424.82 USD 0.05% Market Closed
Market Cap: $3.2T

P/S

10.3
Current
14%
Cheaper
vs 3-y average of 12

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.

P/S
10.3
=
Market Cap
$2.9T
/
Revenue
$305.5B

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.

P/S
10.3
=
Market Cap
$2.9T
/
Revenue
$305.5B

Valuation Scenarios

Microsoft Corp is trading below its 3-year average

If P/S returns to its 3-Year Average (12), the stock would be worth $492.61 (16% upside from current price).

Statistics
Positive Scenarios
2/4
Maximum Downside
-76%
Maximum Upside
+16%
Average Downside
27%
Scenario P/S Value Implied Price Upside/Downside
Current Multiple 10.3 $424.82
0%
3-Year Average 12 $492.61
+16%
5-Year Average 11.8 $484.24
+14%
Industry Average 4.2 $171.36
-60%
Country Average 2.4 $100.14
-76%

Forward P/S
Today’s price vs future revenue

Today's Market Cap Revenue Forward P/S
$2.9T
/
Jan 2026
$305.5B
=
10.3
Current
$2.9T
/
Jun 2026
$334.6B
=
8.6
Forward
$2.9T
/
Jun 2027
$387.2B
=
7.5
Forward
$2.9T
/
Jun 2028
$450.1B
=
6.4
Forward
$2.9T
/
Jun 2029
$519.4B
=
5.6
Forward
$2.9T
/
Jun 2030
$591.5B
=
4.9
Forward
$2.9T
/
Jun 2031
$656.6B
=
4.4
Forward
$2.9T
/
Jun 2032
$689.4B
=
4.2
Forward
$2.9T
/
Jun 2033
$759.5B
=
3.8
Forward

Forward P/S shows whether today’s P/S still looks high or low once future revenue are taken into account.

Peer Comparison

All Multiples
P/S
P/E
All Countries
Close
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
VMware Inc
XETRA:BZF1
58B EUR 5 47.9
US
Fortinet Inc
NASDAQ:FTNT
63.7B USD 9.4 34.3
US
Xperi Holding Corp
LSE:0M2A
54.6B USD 123.2 491.7
CN
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
P/E Multiple
Earnings Growth PEG
US
Microsoft Corp
NASDAQ:MSFT
Average P/E: 112.1
26.5
18%
1.5
US
Oracle Corp
NYSE:ORCL
30.7
37%
0.8
US
Palo Alto Networks Inc
NASDAQ:PANW
100.3
50%
2
US
CrowdStrike Holdings Inc
NASDAQ:CRWD
Negative Multiple: -708.8 N/A N/A
US
ServiceNow Inc
NYSE:NOW
53.3
54%
1
US
V
VMware Inc
XETRA:BZF1
47.9
39%
1.2
US
Fortinet Inc
NASDAQ:FTNT
34.3
15%
2.3
US
Xperi Holding Corp
LSE:0M2A
491.7
N/A N/A
CN
K
Knowledge Atlas Technology JSC Ltd
HKEX:2513
Negative Multiple: -74.7 N/A N/A
CN
MiniMax Group Inc
HKEX:100
Negative Multiple: -15.6 N/A N/A
US
Zscaler Inc
NASDAQ:ZS
Negative Multiple: -318.4 N/A N/A

Market Distribution

Higher than 90% of companies in the United States of America
Percentile
90th
Based on 11 520 companies
90th percentile
10.3
Low
0 — 1.2
Typical Range
1.2 — 4.1
High
4.1 —
Distribution Statistics
the United States of America
Min 0
30th Percentile 1.2
Median 2.4
70th Percentile 4.1
Max 4 613 274.2

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 $424.82
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