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 374.47 USD. Compared to the current market price of 455.55 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
374.47 USD
Overvaluation 18%
Relative Value
Price
Worst Case
Base Case
Best Case

Valuation Multiples

vs History
15
vs Industry
10
Median 3Y
11.7
Median 5Y
11.6
Industry
2.4
Forward
12
vs History
17
vs Industry
19
Median 3Y
33.3
Median 5Y
33
Industry
22.5
Forward
33.8
vs History
34
vs Industry
25
Median 3Y
25.6
Median 5Y
25.5
Industry
17
vs History
6
vs Industry
10
Median 3Y
37.3
Median 5Y
39
Industry
21.4
vs History
77
vs Industry
11
Median 3Y
11.5
Median 5Y
12.1
Industry
2.9
vs History
15
vs Industry
10
Median 3Y
11.5
Median 5Y
11.3
Industry
2.4
Forward
12
vs History
14
vs Industry
14
Median 3Y
16.8
Median 5Y
16.4
Industry
4.9
vs History
49
vs Industry
22
Median 3Y
22
Median 5Y
22.5
Industry
12.6
Forward
21.2
vs History
25
vs Industry
20
Median 3Y
26.4
Median 5Y
26.9
Industry
16.3
Forward
26.6
vs History
34
vs Industry
24
Median 3Y
25.5
Median 5Y
24.9
Industry
15.4
vs History
0
vs Industry
13
Median 3Y
41.2
Median 5Y
35.9
Industry
18.7
vs History
76
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
3.4T USD 12.7 35.4 22.6 28
US
Oracle Corp
NYSE:ORCL
464B USD 8.3 38.2 22.5 30.1
US
ServiceNow Inc
NYSE:NOW
209.3B USD 18.2 136.1 98.3 137.7
US
Palo Alto Networks Inc
NASDAQ:PANW
128.1B USD 14.4 103.5 94.6 126.8
US
CrowdStrike Holdings Inc
NASDAQ:CRWD
116.8B USD 29.6 -6 063 1 177 -962
US
Fortinet Inc
NASDAQ:FTNT
78.3B USD 12.7 41.7 35.7 38
US
VMware Inc
XETRA:BZF1
58B EUR 4.8 46.2 21.3 36
US
Xperi Holding Corp
LSE:0M2A
54.6B USD 143.6 723 258.7 369.6
US
Zscaler Inc
NASDAQ:ZS
42.7B USD 17.6 -2 747 -44 387.2 -406.1
IL
Check Point Software Technologies Ltd
NASDAQ:CHKP
24.8B USD 9.5 29.1 24.2 26.6
IL
Cyberark Software Ltd
NASDAQ:CYBR
18.9B USD 17.3 -216.4 -1 036.2 -208.9
P/E Multiple
Earnings Growth PEG
US
Microsoft Corp
SGO:MSFT
Average P/E: 144.1
35.4
15%
2.4
US
Oracle Corp
NYSE:ORCL
38.2
30%
1.3
US
ServiceNow Inc
NYSE:NOW
136.1
52%
2.6
US
Palo Alto Networks Inc
NASDAQ:PANW
103.5
4%
25.9
US
CrowdStrike Holdings Inc
NASDAQ:CRWD
Negative Multiple: -6 063 N/A N/A
US
Fortinet Inc
NASDAQ:FTNT
41.7
14%
3
US
V
VMware Inc
XETRA:BZF1
46.2
39%
1.2
US
Xperi Holding Corp
LSE:0M2A
723
N/A N/A
US
Zscaler Inc
NASDAQ:ZS
Negative Multiple: -2 747 N/A N/A
IL
Check Point Software Technologies Ltd
NASDAQ:CHKP
29.1
17%
1.7
IL
Cyberark Software Ltd
NASDAQ:CYBR
Negative Multiple: -216.4 N/A N/A
EV/EBITDA Multiple
EBITDA Growth EV/EBITDA to Growth
US
Microsoft Corp
SGO:MSFT
Average EV/EBITDA: 195
22.6
17%
1.3
US
Oracle Corp
NYSE:ORCL
22.5
24%
0.9
US
ServiceNow Inc
NYSE:NOW
98.3
53%
1.9
US
Palo Alto Networks Inc
NASDAQ:PANW
94.6
49%
1.9
US
CrowdStrike Holdings Inc
NASDAQ:CRWD
1 177
177%
6.6
US
Fortinet Inc
NASDAQ:FTNT
35.7
17%
2.1
US
V
VMware Inc
XETRA:BZF1
21.3
19%
1.1
US
Xperi Holding Corp
LSE:0M2A
258.7
N/A N/A
US
Zscaler Inc
NASDAQ:ZS
Negative Multiple: -44 387.2 N/A N/A
IL
Check Point Software Technologies Ltd
NASDAQ:CHKP
24.2
12%
2
IL
Cyberark Software Ltd
NASDAQ:CYBR
Negative Multiple: -1 036.2 N/A N/A
EV/EBIT Multiple
EBIT Growth EV/EBIT to Growth
US
Microsoft Corp
SGO:MSFT
Average EV/EBIT: 99.1
28
15%
1.9
US
Oracle Corp
NYSE:ORCL
30.1
28%
1.1
US
ServiceNow Inc
NYSE:NOW
137.7
64%
2.2
US
Palo Alto Networks Inc
NASDAQ:PANW
126.8
60%
2.1
US
CrowdStrike Holdings Inc
NASDAQ:CRWD
Negative Multiple: -962 N/A N/A
US
Fortinet Inc
NASDAQ:FTNT
38
17%
2.2
US
V
VMware Inc
XETRA:BZF1
36
30%
1.2
US
Xperi Holding Corp
LSE:0M2A
369.6
N/A N/A
US
Zscaler Inc
NASDAQ:ZS
Negative Multiple: -406.1 N/A N/A
IL
Check Point Software Technologies Ltd
NASDAQ:CHKP
26.6
15%
1.8
IL
Cyberark Software Ltd
NASDAQ:CYBR
Negative Multiple: -208.9 N/A N/A