Stock AnalizMicrosoft Corp. MSFT
Computer Software: Prepackaged Software · IPO 1986 · data as of November 13, 2026
Microsoft Corp. (MSFT) is a technology company listed in the US with a market value of about $3.89T. In the twelve months to September 30, 2026 it had revenue of $346.4B and net income of $142.6B, a net margin of 41.2%.
Its overall Stock Analiz score is 3.6 out of 5 (good). The strongest part is track record (5/5); the weakest is value (0/5).
Key numbers: a P/E of 27.3, a price to free cash flow of 64.9, 5-year revenue growth of 15% a year, a 5-year average ROIC of 27%. A discounted cash flow model with moderate assumptions puts its intrinsic value about 20% below the current price.
Score: 3.6 / 5
Checks passed
- Revenue growth above 10% last year
- 3-year revenue growth above 10% a year
- Profit margin improving
- Strong R&D investment or growth above 20%
- 5-year EPS growth above 10% a year
- 5-year revenue growth above 8% a year
- 5-year average ROIC above 12%
- Profitable 5 years in a row
Checks not passed
- P/E below 25
- P/E below the industry median
- P/FCF below 20
- Price below intrinsic value (DCF, moderate assumptions)
- PEG below 1.5
- 3-year free cash flow growth above 10% a year
- Share count down over 3 years (buybacks)
Valuation
Growth and quality
Financials, last 10 years
| Fiscal year | TTM | 2026 | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | $346.4B | $331.8B | $281.7B | $245.1B | $211.9B | $198.3B | $168.1B | $143.0B | $125.8B | $110.4B | $96.6B |
| Net income | $142.6B | $133.7B | $101.8B | $88.1B | $72.4B | $72.7B | $61.3B | $44.3B | $39.2B | $16.6B | $25.5B |
| Free cash flow | $60.0B | $67.0B | $71.6B | $74.1B | $59.5B | $65.1B | $56.1B | $45.2B | $38.3B | $32.3B | $31.4B |
| EPS (diluted) | $19.16 | $17.95 | $13.64 | $11.80 | $9.68 | $9.65 | $8.05 | $5.76 | $5.06 | $2.13 | $3.25 |
| Net margin | 41.2% | 40.3% | 36.1% | 36.0% | 34.2% | 36.7% | 36.4% | 31.0% | 31.2% | 15.0% | 26.4% |
| ROIC | — | 24.8% | 25.9% | 26.9% | 26.7% | 31.5% | 28.5% | 23.2% | 21.2% | 16.7% | 14.4% |
From the company’s 10-K and 10-Q filings with the SEC. TTM = trailing twelve months.
What analysts expect
The average 12-month price target from 54 analysts is $636.12, 21% above the current price; targets range from $440.00 to $870.00; the consensus rating is “Strong buy”; expected EPS is $20.01 for the fiscal year ending June 30, 2027.
Frequently asked questions
What is Microsoft’s P/E ratio?
About 27.3, based on the last twelve months of diluted earnings per share (forward P/E about 23.9).
Is Microsoft stock undervalued?
Our DCF model with moderate assumptions puts its intrinsic value about 20% below the current market value. A model is a range, not a promise; try your own assumptions in the DCF calculator.
Does Microsoft pay a dividend?
Yes. The dividend yield is about 0.75%, and it has paid dividends for 10 years in our data.
Is Microsoft a good stock to buy?
We do not give buy or sell advice. Microsoft scores 3.6 out of 5 on our five checks (value, growth, track record, financial health and shareholder returns); the checks above show why.
Similar companies
Generated from SEC filings, analyst consensus estimates and market prices, rebuilt every day. Educational information, not investment advice.