Is it worth investing?
Microsoft Corporation is a remarkable business, at a price that demands patience.
Microsoft Corporation (MSFT) is a company in the Software - Infrastructure industry, listed on NASDAQ, with a market capitalisation of 2.95 trillion USD. The stock trades at 397.36 USD, 27% below its 52-week high.
Against trailing twelve-month earnings, the price asks 23.6 times profit, versus 21.4 times for the industry median. Return on equity stands at 40.9%, against an industry median of 5.8%. Revenue has grown 14.5% a year over the past five years.
Over the past twelve months the stock returned -12.7%, against +24.8% for SPY over the same period. The analysis below covers valuation, profitability, growth, the balance sheet and price behaviour, with data updated daily.
Key data
The reported figures, before any interpretation
Price and Trading
- Open The price at which Microsoft Corporation shares first traded in the latest session.
- Close The price of the last Microsoft Corporation trade in the session that closed.
- Day range The lowest and highest price Microsoft Corporation shares reached in that session.
- Volume How many Microsoft Corporation shares changed hands in the latest session.
- 52-week range The lowest and highest price of Microsoft Corporation shares over the past year.
- Position in the 52-week range Where the current price of Microsoft Corporation shares sits between the low and the high of the past year. 100% means right at the high.
- 50-day average The average price of Microsoft Corporation shares over the last 50 sessions. Shows the short-term trend.
- 200-day average The average price of Microsoft Corporation shares over the last 200 sessions. Shows the long-term trend.
- Market cap The market value of all Microsoft Corporation shares combined.
Earnings and Valuation
- Earnings per share How much net profit belongs to a single Microsoft Corporation share over the last twelve months.
- Estimated earnings, current year The earnings per share analysts expect from Microsoft Corporation for the current financial year.
- Estimated earnings, next year The earnings per share expected from Microsoft Corporation for the following financial year.
- Revenue per share How much of the annual sales of Microsoft Corporation belongs to a single share.
- Book value per share How much Microsoft Corporation equity belongs to one share, once debt is subtracted from assets.
- Revenue, last 12 months Total Microsoft Corporation sales across the last four reported quarters.
- Price / earnings How many years of current profit a Microsoft Corporation share costs at today price.
- Forward price / earnings The same ratio, but against the profit Microsoft Corporation is expected to make next year.
- PEG The price/earnings ratio of Microsoft Corporation divided by its growth rate. Below 1 is considered cheap relative to how fast it grows.
- Enterprise value / EBITDA The price of the whole Microsoft Corporation business, debt included, against operating profit before depreciation.
Return and Risk
Low risk · 87- Net margin How much net profit Microsoft Corporation keeps out of every unit of sales.
- Return on equity How much net profit Microsoft Corporation produces from shareholder money.
- Dividend yield How much Microsoft Corporation pays out in dividends each year, relative to the share price.
- Dividend per share The estimated annual amount received for each Microsoft Corporation share held.
- Payout ratio What share of Microsoft Corporation profit goes back to shareholders as dividends. The rest stays in the company.
- Beta How strongly Microsoft Corporation shares move against the market. 1 means the same, above 1 means wider swings.
- Debt / equity How much debt Microsoft Corporation carries for every unit of equity.
- Short interest as % of float What share of freely tradable Microsoft Corporation stock is sold short, as a bet on a decline.
- Days to cover short positions How many normal trading days it would take to close every short position on Microsoft Corporation.
Some values update after the trading session opens, others are recalculated after it closes. Figures from the financial statements change only when results are published.
Verdict
The Microsoft Corporation score from 0 to 100, built from over 400 financial indicators. Not investment advice.At Microsoft Corporation, return on capital exceeds its cost.
But the price trades below its 200-day average.
It earns 41% a year on shareholders' money. Net profit has grown 18% a year over five years. Against ten-year average profit, the price asks 56 times as much.
- In Technology, Microsoft Corporation is above the sector average on stability and quality.
- neutral verdicts returned a median of +12.2% over one year, across 63,296 assessments.
Analysis produced automatically by einvestitii.ro, on data as of aug. 24, 2026. It is not investment advice. Who produces it, what it rests on and what conflicts of interest exist — in the full disclosure.
Arguments for and against
What supports the case and what weakens it
Pro 11 arguments
- 💰39.3% of revenue survives as net profit.Above the sector median, which keeps 7.2%.
- 💰Return on equity is 40.9%.Above the typical company in the sector, which gets 10.9%.
- 🏦Debt is 0.30 times annual operating profit.Below the sector median of 1.4. A weak stretch would not strain results.
See all 11
- 🚀Earnings per share grew 18.8% a year, five years running.The typical company in the sector grew 11.5% a year over the same period.
- 🚀Revenue grew 14.5% a year, five years running.The typical company in the sector grew 11.4% a year over the same period.
- ⚖️Today's buyer pays for 23.6 years of current earnings.Below the sector median, which asks 27.5 years.
- 🛡The bankruptcy model places the company in the safe zone.The Altman score is 7.71, against the 2.60 threshold below which the risk zone starts.
- 💰Capital produces 17.4 points more than it costs.26.8% return against a 9.4% cost. Each unit reinvested creates value.
- 🛡Short-selling pressure is minimal.Only 1.0% of the free float is sold short, and covering would take 2.26 days.
- 📈Institutions were net buyers last quarter: 16 funds added, 10 trimmed.Together they hold 75.8% of the company.
- 📊The last 8 reports beat analyst estimates.The latest by 4.4%. The rate over eight quarters is 100.0%.
Against 3 arguments
- The dividend yield is 0.9%, below the risk-free rate in US.Government bonds pay 4.7%, without the risk of a share.
- 📉The 50-day price average has fallen below the 200-day.The setup many watch as a sign of a downtrend. The price sits 12.8% below the long average.
- The models find no durable competitive advantage.No identified barrier that would protect margins from competition.
What it is really worth
Value & Valuation
The market price is what buyers are asking today. Here we work out what the share should cost based on the company’s own figures: using the valuation models professional investors rely on, the growth the current price assumes, and the target set by the analysts who follow the company.
what analysts think
What the analysts covering the company think, and where they see the price twelve months out. These are their estimates, not ours.
- Strong sell 0 0%
- Sell 0 0%
- Hold 5 8%
- Buy 15 25%
- Strong buy 41 67%
The analyst consensus is more optimistic than our score, by 86 points on the same 0 to 100 scale.
Analyst estimates, third-party source. These are not our verdict.
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Price today $397.36
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Revisions, last 30 days 18 ↑9 ↓
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Expected earnings growth +15.02%
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Analysts covering 61
Analyst estimates, third-party source.
fair value
Close to fair value price $397.36the price is at 103% of the estimate from 4 models
What Microsoft Corporation shares should cost, according to the valuation models of the best-known investors in history.
These are estimates, not price targets: every model starts from assumptions about the future, and if the assumptions change, so does the number.
- Median of 4 modelsNot the average, but the middle value. A model that falls far out of line does not drag the result with it.
- Confidence in the estimateHow close the models are to one another.
- Spread across modelsHow far they deviate from the median on average. Below 50% means they are reasonably close.
- Growth the price demandsHow fast profit would have to grow, year after year, for today’s price to make sense.
- Growth actually deliveredThe average growth of past years. Compare it with the line above.
4 different methods, the same company figures. Each assumes something different about the future, and that is where the differences come from.
For today’s price to be justified, earnings would have to grow 6.9% a year. Over the past five years they grew 18.8%.
- Growth the price requiresThe annual pace earnings would have to reach for today’s price to be justified.
- Growth actually deliveredHow much earnings per share actually grew over the past five years.
- The gapHow far above past performance the expectation in the price sits.
- Value with no growthWhat the company would be worth if it stayed exactly as it is today.
Starting from a base value of $648.23, how much the result changes if you alter each assumption in turn.
The cost of capital moves the estimate almost three times as much as earnings growth.
projections
Projection computed on 18 august 2026These are not predictions. The model splits the possible outcomes into ranges and reports how often the price landed in each, across similar cases in the past.
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12 months out · median +6,6% −35% … +46%
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3 years out, per year · median +12,8% +6% … +17%
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5 years out, per year · median +12,3% +6% … +13%
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Of which repricing, per year −0,5%
Quantiles of a probabilistic model. Not price targets.
- Higher than today's price 47%
- Better than the index 40% index +4,5%
- Gain over 20% 18%
- Drop over 10% 33%
- Drop over 20% 21%
If the market fell 20%, the model expects −21,6% for this stock — because it moves 1,08 times as hard as the market. On a 40% fall: −43,3%.
Probabilities verified on historical cases.
profitability
return on capital 26.85%The engine runs very well
The gap of 17.40% has held in each of the last 20 years.
- net margin39.34%
- consecutive revenue growth20 years
growth
revenue, 3 years 12.42%The pace is strong
The price assumes the pace holds. With no growth at all, the estimate drops to $180.23.
balance sheet and dividends
Nothing to fault
- net debt$24.86B
- dividend yield0.87%
- of returned capital goes to buybacks23.23%
Exceptional quality
and a stretched price.
That the business is among the best is not in question. The question is whether it is worth paying today’s price for it.
For this to work out, the price trend would have to turn in the shares’ favour.
Disclosure (legal information) See details Hide
Analysis produced by einvestitii.ro, founder . We are not supervised by the Romanian Financial Supervisory Authority. This is not personalised investment advice. Fair values are estimates, not guaranteed prices.
- Calculated 24 August 2026
- Price used $397.36 (as of 10 June 2026)
- Estimated fair value $384.84 — an estimate dependent on assumptions (cost of capital, growth, terminal value). Not a price target. Confidence: Medie.
- Updates On every recalculation of the company fundamentals.
- Verdict changed yes (score +1.5 against the previous assessment)
- Conflicts of interest We hold no positions in the instruments analysed and receive no payment from issuers for assessments. Pages may contain affiliate links to brokers, marked as such, which do not influence the scores.