Microsoft Corp
SGO:MSFT

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Microsoft Corp
SGO:MSFT
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Price: 455.55 USD Market Closed
Market Cap: 3.4T USD

Relative Value

The Relative Value of one MSFT stock under the Base Case scenario is 369.92 USD. Compared to the current market price of 455.55 USD, Microsoft Corp is Overvalued by 19%.

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
369.92 USD
Overvaluation 19%
Relative Value
Price
Worst Case
Base Case
Best Case

Valuation Multiples

vs History
9
vs Industry
10
Median 3Y
11.7
Median 5Y
11.7
Industry
2.4
Forward
12.4
vs History
4
vs Industry
19
Median 3Y
33.4
Median 5Y
33.3
Industry
22.6
Forward
34.9
vs History
23
vs Industry
25
Median 3Y
25.6
Median 5Y
25.6
Industry
17
vs History
1
vs Industry
10
Median 3Y
37.3
Median 5Y
39.2
Industry
21.5
vs History
71
vs Industry
11
Median 3Y
11.5
Median 5Y
12.1
Industry
2.9
vs History
7
vs Industry
10
Median 3Y
11.6
Median 5Y
11.3
Industry
2.4
Forward
12.4
vs History
6
vs Industry
14
Median 3Y
16.8
Median 5Y
16.4
Industry
4.9
vs History
28
vs Industry
22
Median 3Y
22
Median 5Y
22.6
Industry
12.6
Forward
21.9
vs History
14
vs Industry
20
Median 3Y
26.4
Median 5Y
26.9
Industry
16.2
Forward
27.4
vs History
20
vs Industry
24
Median 3Y
25.5
Median 5Y
25
Industry
15.5
vs History
0
vs Industry
13
Median 3Y
41.3
Median 5Y
36
Industry
18.8
vs History
65
vs Industry
15
Median 3Y
7.7
Median 5Y
8.4
Industry
2.4

Multiples Across Competitors

MSFT Competitors Multiples
Microsoft Corp Competitors

Market Cap P/S P/E EV/EBITDA EV/EBIT
US
Microsoft Corp
SGO:MSFT
3.5T USD 13.1 36.5 23.3 28.9
US
Oracle Corp
NYSE:ORCL
603.3B USD 10.8 49.6 28.3 38
US
ServiceNow Inc
NYSE:NOW
204.6B USD 17.8 133.1 96.1 134.5
US
Palo Alto Networks Inc
NASDAQ:PANW
130.7B USD 14.7 105.6 96.5 129.5
US
CrowdStrike Holdings Inc
NASDAQ:CRWD
119.1B USD 28.8 -691.4 4 724.3 -562.4
US
Fortinet Inc
NASDAQ:FTNT
77.6B USD 12.6 41.3 35.3 37.7
US
VMware Inc
XETRA:BZF1
58B EUR 4.9 46.9 21.7 36.5
US
Xperi Holding Corp
LSE:0M2A
54.6B USD 143.6 723 258.7 369.6
US
Zscaler Inc
NASDAQ:ZS
47B USD 18.5 -1 212.3 -3 785.7 -366.6
IL
Check Point Software Technologies Ltd
NASDAQ:CHKP
23.7B USD 9.1 27.8 23.1 25.4
IL
Cyberark Software Ltd
NASDAQ:CYBR
19.1B USD 17.4 -218.7 -1 047.2 -211.1
P/E Multiple
Earnings Growth PEG
US
Microsoft Corp
SGO:MSFT
Average P/E: 145.5
36.5
15%
2.4
US
Oracle Corp
NYSE:ORCL
49.6
30%
1.7
US
ServiceNow Inc
NYSE:NOW
133.1
52%
2.6
US
Palo Alto Networks Inc
NASDAQ:PANW
105.6
4%
26.4
US
CrowdStrike Holdings Inc
NASDAQ:CRWD
Negative Multiple: -691.4 N/A N/A
US
Fortinet Inc
NASDAQ:FTNT
41.3
14%
2.9
US
V
VMware Inc
XETRA:BZF1
46.9
39%
1.2
US
Xperi Holding Corp
LSE:0M2A
723
N/A N/A
US
Zscaler Inc
NASDAQ:ZS
Negative Multiple: -1 212.3 N/A N/A
IL
Check Point Software Technologies Ltd
NASDAQ:CHKP
27.8
17%
1.6
IL
Cyberark Software Ltd
NASDAQ:CYBR
Negative Multiple: -218.7 N/A N/A
EV/EBITDA Multiple
EBITDA Growth EV/EBITDA to Growth
US
Microsoft Corp
SGO:MSFT
Average EV/EBITDA: 589.7
23.3
17%
1.4
US
Oracle Corp
NYSE:ORCL
28.3
24%
1.2
US
ServiceNow Inc
NYSE:NOW
96.1
53%
1.8
US
Palo Alto Networks Inc
NASDAQ:PANW
96.5
49%
2
US
CrowdStrike Holdings Inc
NASDAQ:CRWD
4 724.3
178%
26.5
US
Fortinet Inc
NASDAQ:FTNT
35.3
17%
2.1
US
V
VMware Inc
XETRA:BZF1
21.7
19%
1.1
US
Xperi Holding Corp
LSE:0M2A
258.7
N/A N/A
US
Zscaler Inc
NASDAQ:ZS
Negative Multiple: -3 785.7 N/A N/A
IL
Check Point Software Technologies Ltd
NASDAQ:CHKP
23.1
12%
1.9
IL
Cyberark Software Ltd
NASDAQ:CYBR
Negative Multiple: -1 047.2 N/A N/A
EV/EBIT Multiple
EBIT Growth EV/EBIT to Growth
US
Microsoft Corp
SGO:MSFT
Average EV/EBIT: 100
28.9
15%
1.9
US
Oracle Corp
NYSE:ORCL
38
28%
1.4
US
ServiceNow Inc
NYSE:NOW
134.5
64%
2.1
US
Palo Alto Networks Inc
NASDAQ:PANW
129.5
60%
2.2
US
CrowdStrike Holdings Inc
NASDAQ:CRWD
Negative Multiple: -562.4 N/A N/A
US
Fortinet Inc
NASDAQ:FTNT
37.7
17%
2.2
US
V
VMware Inc
XETRA:BZF1
36.5
30%
1.2
US
Xperi Holding Corp
LSE:0M2A
369.6
N/A N/A
US
Zscaler Inc
NASDAQ:ZS
Negative Multiple: -366.6 N/A N/A
IL
Check Point Software Technologies Ltd
NASDAQ:CHKP
25.4
15%
1.7
IL
Cyberark Software Ltd
NASDAQ:CYBR
Negative Multiple: -211.1 N/A N/A