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Microsoft Corp
SGO:MSFT

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Microsoft Corp
SGO:MSFT
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Price: 420.39 USD 0.24% Market Closed
Market Cap: $3.1T

EV/EBITDA

17.5
Current
22%
Cheaper
vs 3-y average of 22.4

Enterprise Value to EBITDA (EV/EBITDA) ratio compares a company`s total enterprise value to its earnings before interest, taxes, depreciation, and amortization. It shows how much investors are paying for each dollar of the company`s earnings, including both equity and debt.

EV/EBITDA
17.5
=
Enterprise Value
$2.9T
/
EBITDA
$179.8B

Enterprise Value to EBITDA (EV/EBITDA) ratio compares a company`s total enterprise value to its earnings before interest, taxes, depreciation, and amortization. It shows how much investors are paying for each dollar of the company`s earnings, including both equity and debt.

EV/EBITDA
17.5
=
Enterprise Value
$2.9T
/
EBITDA
$179.8B

Valuation Scenarios

Microsoft Corp is trading below its 3-year average

If EV/EBITDA returns to its 3-Year Average (22.4), the stock would be worth $538.45 (28% upside from current price).

Statistics
Positive Scenarios
3/4
Maximum Downside
-18%
Maximum Upside
+29%
Average Upside
12%
Scenario EV/EBITDA Value Implied Price Upside/Downside
Current Multiple 17.5 $420.39
0%
3-Year Average 22.4 $538.45
+28%
5-Year Average 22.6 $542.41
+29%
Industry Average 19.4 $464.6
+11%
Country Average 14.4 $344.48
-18%

Forward EV/EBITDA
Today’s price vs future ebitda

Today's Enterprise Value EBITDA Forward EV/EBITDA
$2.9T
/
Jan 2026
$179.8B
=
17.5
Current
$2.9T
/
Jun 2026
$200.1B
=
14.4
Forward
$2.9T
/
Jun 2027
$236.3B
=
12.2
Forward
$2.9T
/
Jun 2028
$275.9B
=
10.5
Forward

Forward EV/EBITDA shows whether today’s EV/EBITDA still looks high or low once future ebitda are taken into account.

Peer Comparison

All Multiples
EV/EBITDA
P/E
All Countries
Close
Market Cap EV/EBITDA P/E
US
Microsoft Corp
SGO:MSFT
3.2T USD 17.5 26.4
US
Oracle Corp
NYSE:ORCL
520.9B USD 21.3 32.2
US
Palo Alto Networks Inc
NASDAQ:PANW
142.8B USD 78.6 95.9
US
CrowdStrike Holdings Inc
NASDAQ:CRWD
111.4B USD 3 247.1 -685.8
US
ServiceNow Inc
NYSE:NOW
104.9B USD 38.9 60
US
VMware Inc
XETRA:BZF1
58B EUR 22.1 47.9
US
Fortinet Inc
NASDAQ:FTNT
63.3B USD 27.1 34.2
CN
Knowledge Atlas Technology JSC Ltd
HKEX:2513
418.2B HKD -103.8 -78.1
US
Xperi Holding Corp
LSE:0M2A
54.6B USD 212.5 491.7
CN
MiniMax Group Inc
HKEX:100
274.4B HKD -20.2 -18.7
US
Zscaler Inc
NASDAQ:ZS
22.4B USD 1 066.8 -331.5
EV/EBITDA Multiple
EBITDA Growth EV/EBITDA to Growth
US
Microsoft Corp
SGO:MSFT
Average EV/EBITDA: 525.8
17.5
19%
0.9
US
Oracle Corp
NYSE:ORCL
21.3
43%
0.5
US
Palo Alto Networks Inc
NASDAQ:PANW
78.6
49%
1.6
US
CrowdStrike Holdings Inc
NASDAQ:CRWD
3 247.1
345%
9.4
US
ServiceNow Inc
NYSE:NOW
38.9
47%
0.8
US
V
VMware Inc
XETRA:BZF1
22.1
19%
1.2
US
Fortinet Inc
NASDAQ:FTNT
27.1
17%
1.6
CN
K
Knowledge Atlas Technology JSC Ltd
HKEX:2513
Negative Multiple: -103.8 N/A N/A
US
Xperi Holding Corp
LSE:0M2A
212.5
N/A N/A
CN
MiniMax Group Inc
HKEX:100
Negative Multiple: -20.2 N/A N/A
US
Zscaler Inc
NASDAQ:ZS
1 066.8
N/A N/A
P/E Multiple
Earnings Growth PEG
US
Microsoft Corp
SGO:MSFT
Average P/E: 112.6
26.4
18%
1.5
US
Oracle Corp
NYSE:ORCL
32.2
37%
0.9
US
Palo Alto Networks Inc
NASDAQ:PANW
95.9
50%
1.9
US
CrowdStrike Holdings Inc
NASDAQ:CRWD
Negative Multiple: -685.8 N/A N/A
US
ServiceNow Inc
NYSE:NOW
60
54%
1.1
US
V
VMware Inc
XETRA:BZF1
47.9
39%
1.2
US
Fortinet Inc
NASDAQ:FTNT
34.2
15%
2.3
CN
K
Knowledge Atlas Technology JSC Ltd
HKEX:2513
Negative Multiple: -78.1 N/A N/A
US
Xperi Holding Corp
LSE:0M2A
491.7
N/A N/A
CN
MiniMax Group Inc
HKEX:100
Negative Multiple: -18.7 N/A N/A
US
Zscaler Inc
NASDAQ:ZS
Negative Multiple: -331.5 N/A N/A

Market Distribution

In line with most companies in the United States of America
Percentile
60th
Based on 9 875 companies
60th percentile
17.4
Low
0 — 10
Typical Range
10 — 21.5
High
21.5 —
Distribution Statistics
the United States of America
Min 0
30th Percentile 10
Median 14.4
70th Percentile 21.5
Max 1 767 274.1

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
404.64 USD
Overvaluation 4%
Intrinsic Value
Price $420.39
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