TechnologyUpdated·Data: Yahoo Finance, SEC EDGAR·Data delayed ~5 min

Breakdown MSFT (Microsoft) Liquidity Position Deep Value

NMS · Technology · Software - Infrastructure

$505.41

+9.78 (+1.97%)

Overview Technical Risk Whale Earnings Options Short Interest ESG

MSFT Interactive Price Chart & Trading Signals

MSFT Stock Snapshot — Valuation, Risk & Technical Signals

Buy / Hold / Sell Gauge

QuantSoar Model

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Score breakdown

Base50

Valuation-25

Total25

Analyst Consensus (Yahoo Finance)

Strong Buy

Mean Target

$572.92

Analyst ratings are from third-party sources and may lag market conditions. They are independent from the QuantSoar model verdict above.

Financial Snowflake

Blue = QuantSoar model score · Gray = derived from fundamentals

Valuation

Profitability

est.

Growth

est.

Financial Health

est.

Dividend

est.

Momentum

MSFT Key Fundamentals, Analyst Targets & Company Profile

Key Financial Ratios

Market Cap

$3752.94B

P/E Ratio

28.17

Forward P/E

21.42

PEG Ratio

1.61

P/B Ratio

8.49

EPS

$17.94

Dividend Yield

0.72%

52W Range

$349.20 – $553.72

Beta

1.11

Volume

23.0M

ROE

34.0%

Profit Margin

40.3%

Revenue Growth

17.7%

Gross Margin

67.9%

EV/EBITDA

19.59

Analyst Target

$572.92

The trailing price-to-earnings ratio stands at 28.2x. Forward P/E of 21.4x implies earnings expansion expected. Price-to-book is 8.49x. EV/EBITDA sits at 19.59x. Market capitalization is $3.75T. Revenue is growing at 17.7% on a trailing basis. Earnings are expanding at 31.7%. Profit margins are 40.3%. Return on equity is 34.0%. Beta of 1.11 indicates market-average volatility.

Analyst Consensus

Recommendation

Strong Buy

Low Target

$400.00

Mean Target

$572.92

High Target

$870.00

Based on 52 analysts

About Microsoft

Microsoft Corporation, a technology company, develops and supports a portfolio of technology solutions for individuals and businesses worldwide. Its products include operating systems, server applications, business solution applications, software development tools, desktop and server management tools, and video games; and devices, such as PCs, tablets, gaming and entertainment consoles, other intelligent devices, and related accessories. The company's Productivity and Business Processes segment offers Microsoft 365 Commercial, Enterprise Mobility + Security, Power BI, Exchange, SharePoint, Microsoft Teams, Microsoft 365 Security and Compliance, Microsoft 365 Copilot, and Windows Commercial on-premises and Office licensed on-premises. This segment also provides Microsoft 365 Consumer products and cloud services; LinkedIn, including talent solutions, marketing solutions, subscriptions, and sales solutions; Dynamics 365, a set of cloud-based applications; and on-premises ERP and CRM applications. Its Intelligent Cloud segment offers server products and cloud services; cloud and AI consumption-based services, GitHub cloud services, health and life sciences cloud services, as well as virtual desktop offerings, and other cloud services; SQL Server, Windows Server, Visual Studio, System Center, and related client access licenses; and enterprise support services, industry solutions, Microsoft partner network, and learning experience. The company's More Personal Computing segment provides Windows OEM licensing and devices comprising Surface and PC accessories; XBOX hardware, and XBOX first- and third-party content and services; XBOX Game Pass and other subscriptions; XBOX Cloud Gaming, advertising, and other cloud services; and search advertising consisting of Bing, Copilot, Microsoft News, Microsoft Edge, and third-party affiliates. It sells its products through partners and retail networks. The company was founded in 1975 and is headquartered in Redmond, Washington.

United States223,000 employeesWebsite ↗

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MSFT Deep Dive Analysis

Bottom Line

Verdict

Overvalued

Best for

Growth-oriented investors

Watch out for

Premium valuation

Data confidence

High

Microsoft Corporation (MSFT) trades above our multi-model fair value estimate of $334.13 by approximately 33.9%. Trailing P/E: 28.2x. Profitability signals include profit margin of 40.3% and return on equity of 34.0%. Recent growth metrics show revenue growth of 17.7% and earnings growth of 31.7%. Risk profile: beta of 1.11. Consensus: strong_buy.

MSFT Deep Dive Analysis

Valuation

Overvalued

P/E 28.2x

Price is above what fundamentals suggest.

Growth

Expanding

Rev 17.7%

Revenue is outpacing the market.

Valuation Snapshot

Microsoft Corporation (MSFT) trades above our multi-model fair value estimate of $334.13 by approximately 33.9%. The trailing price-to-earnings ratio stands at 28.2x. Forward P/E of 21.4x suggests earnings compression ahead. Price-to-sales is 11.3x. Price-to-book is 8.5x. EV/EBITDA sits at 19.6x. Market capitalization is $3.75T.

Why it matters: Paying a premium works only if the company keeps growing faster than expected.

Growth & Profitability

Revenue is growing at 17.7% on a trailing basis. Earnings are expanding at 31.7%. Profit margins are 40.3%. Return on equity is 34.0%. Return on assets is 14.1%.

Why it matters: Growing revenue with healthy margins usually means the business is gaining market share or pricing power.

Risk Profile

Beta of 1.11 indicates market-average volatility. Net debt position is $51.97B.

Why it matters: Lower risk means steadier returns, but often with less upside in bull markets.

Analyst Context

Analyst consensus target of $572.92 implies 13.4% upside. Target range spans $400.00 to $870.00. 52 analysts cover the stock. Consensus recommendation: strong_buy.

Why it matters: Analyst targets reflect what professionals expect over 12 months. A wide gap between price and target can mean the market disagrees with the consensus.

Investor Fit

Premium valuation is supported by above-average growth, potentially fitting growth-oriented strategies.

Takeaway: Match the stock's risk-reward profile with your own goals and time horizon. No single metric tells the whole story.

Data Methodology & Sources

Market Data (Facts)

Price, volume, market cap: Yahoo Finance (delayed ~5 min)
P/E, EPS, revenue, debt: Yahoo Finance fundamentals
Analyst targets: Yahoo Finance consensus (may lag)
Insider trades: SEC EDGAR Form 4 filings

QuantSoar Model (Derived)

Fair Value: 7-model consensus (DCF, Graham, P/E, P/S, DDM, EV/EBITDA, Div Yield) — trimmed inverse-variance weighted
Margin of Safety = (Fair Value − Live Price) / Live Price × 100
Composite Score: 40% Value + 30% Momentum + 30% Risk
Verdict Gauge: Base 50 + Valuation(±25) + Whale(±10) + Macro(±10) + Technical(±10). Analyst consensus shown separately.

Model outputs are estimates based on available data and are not investment advice. Cross-check with primary sources before making investment decisions.

MSFT Overvalued

Microsoft Corporation (MSFT) trades above our multi-model fair value estimate of $334.13 by approximately 33.9%.

Frequently Asked Questions

ValuationIs MSFT stock overvalued right now?

Based on our discounted cash flow and relative valuation models, MSFT appears to trade above fair value by approximately 33.9%. This suggests the market may be pricing in elevated growth expectations or sentiment premiums.

ValuationWhat is MSFT fair value based on current fundamentals?

Our fair value estimate for MSFT is $334.13, derived from discounted cash flow, dividend discount, and relative valuation multiples. The estimate assumes a discount rate of 9.0% and terminal growth of 2.5%.

RiskHow risky is MSFT compared with other stocks?

MSFT carries a beta of 1.11 is near market average. Investors should weigh macro exposure against their own risk tolerance.

GrowthIs MSFT still growing?

Latest trailing metrics show revenue growth of 17.7% and earnings growth of 31.7%. Profit margins are 40.3%.

AnalystWhat do analysts think about MSFT?

Analyst consensus target is $572.92, implying 13.4% upside. The street recommendation is "strong_buy".

DividendDoes MSFT pay a dividend?

Yes. MSFT currently offers a dividend yield of 0.7%.

CatalystWhat could change the investment case for MSFT?

Key catalysts include Technology sector dynamics, interest rate shifts, and company-specific earnings surprises. Monitor macro risk scores and analyst estimate revisions for early signals.

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About the Author

Phasakorn Traklang (Peach) — Founder

Phasakorn Traklang (Peach) is the founder of QuantSoar, bringing expertise in SEO, web development, and technical analytics to build an AI-powered investment platform accessible to retail investors worldwide.

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Investment Disclaimer: QuantSoar is for informational purposes only. We do not provide personalized investment advice. Always conduct your own research or consult a financial advisor. SEC

Data: Yahoo Finance / SEC EDGAR / Alpha Vantage / Finnhub. AI outputs verified against source data.