Microsoft Corporation (MSFT) Stock Analysis — PE Ratio, PS Ratio, Intrinsic Value & 2030 Price Target
Microsoft Corporation stock (MSFT) is currently trading at $371.04. Microsoft Corporation PE ratio is 23.98. Microsoft Corporation PS ratio (Price-to-Sales) is 9.32. Analyst consensus price target for MSFT is $594.62. WallStSmart rates MSFT as Moderate Buy.
Microsoft Corporation (MSFT) stock price prediction for 2030: Base case $409.30. Bull case $511.63. Bear case $306.98. See full MSFT 2030 price forecast and methodology on WallStSmart.
- MSFT PE ratio analysis and historical PE chart
- MSFT PS ratio (Price-to-Sales) history and trend
- MSFT intrinsic value — DCF, Graham Number, EPV models
- MSFT stock price prediction 2025 2026 2027 2028 2029 2030
- MSFT fair value vs current price
- MSFT insider transactions and insider buying
- Is MSFT undervalued or overvalued?
- Microsoft Corporation financial analysis — revenue, earnings, cash flow
- MSFT Piotroski F-Score and Altman Z-Score
- MSFT analyst price target and Smart Rating
Microsoft Corporation
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MSFT Intrinsic Value Analysis for Value Investors
Benjamin Graham Formula · Microsoft Corporation (MSFT)
MSFT trades at a significant discount to its Graham intrinsic value of $747.40, offering a 50% margin of safety — a level value investors typically seek before buying.
Based on Benjamin Graham Formula. Growth rate capped at 25%. For informational purposes only. Not financial advice.
Smart Analysis
Microsoft Corporation (MSFT) · 10 metrics scored
Smart Score
Category Performance
WallStSmart pulls financial metrics like revenue growth, profit margins, and valuation ratios and scores each one from 0 to 10 based on how strong or weak it is. Those 10 scores are grouped into 4 categories: Growth, Profitability, Valuation, and Quality — which form the 4 axes of the spider chart you see. The categories are then combined into a final score out of 100, but not equally. Growth and Profitability together count for 60% of the total, because a fast-growing profitable business matters more than just a cheap one. That final number maps to a rating (Strong Buy, Buy, Hold, Avoid) and a letter grade, giving you one clear Stock Rating.
Investment Thesis
Strong fundamentals in market cap, peg ratio, return on equity. Concerns around price/sales and price/book. Overall metrics suggest strong investment potential with favorable risk/reward.
Microsoft Corporation (MSFT) Key Strengths (7)
Mega-cap company, among the largest in the world
Every $100 of shareholder equity generates $34 in profit
Keeps $47 of every $100 in revenue after operating costs
Earnings per share surging 59.80% year-over-year
Keeps $39 of every $100 in revenue as net profit
76.00% of shares held by major funds and institutions
Good growth relative to its price
Supporting Valuation Data
Microsoft Corporation (MSFT) Areas to Watch (3)
Very expensive at 9.3x annual revenue
Very expensive at 7.3x book value
Solid revenue growth at 16.70% per year
Supporting Valuation Data
Microsoft Corporation (MSFT) Detailed Analysis Report
Overall Assessment
This company scores 74/100 in our Smart Analysis, earning a B grade. Out of 10 metrics analyzed, 7 register as strengths (avg 9.7/10) while 3 fall into concern territory (avg 3.3/10). The category breakdown reveals uneven performance, with some areas requiring attention.
The Bull Case
The strongest argument centers on Market Cap, Return on Equity, Operating Margin. Valuation metrics including PEG Ratio (1.25) suggest the stock is attractively priced. Profitability is solid with Return on Equity at 34.40%, Operating Margin at 47.10%, Profit Margin at 39.00%. Growth metrics are encouraging with EPS Growth at 59.80%.
The Bear Case
The primary concerns are Price/Sales, Price/Book, Revenue Growth. Some valuation metrics including Price/Sales (9.32), Price/Book (7.25) suggest expensive pricing. Growth concerns include Revenue Growth at 16.70%, which may limit upside.
Key Dynamics to Monitor
Three factors to monitor going forward. First, whether Price/Sales improves, as this is the primary drag on the overall score. Second, margin trajectory, with Return on Equity at 34.40% currently healthy but needing to be sustained. Third, growth sustainability, with Revenue Growth at 16.70% needing to reaccelerate.
Risk Considerations
Based on the metric profile, this is a moderate risk investment. The weight of evidence leans positive, with more strengths than concerns. Investors should size positions according to their risk tolerance and maintain diversification.
Bottom Line
The combination of Market Cap and Return on Equity makes a compelling case at current levels. The key risk is Price/Sales, but the overall fundamental picture is positive with a clear path to maintaining or improving the current B grade.
Disclaimer: Smart Analysis is a scoring system developed by WallStSmart Team. Scores update daily using multi-model valuation framework. Always conduct your own research and consult with financial advisors before making investment decisions.
MSFT Price-to-Sales(PS) Ratio Chart
Historical valuation based on market cap ÷ trailing 12-month revenue
MSFT's Price-to-Sales ratio of 9.29x trades 96% above its historical average of 4.75x (97th percentile), historically expensive. The current valuation is 7% below its historical high of 9.96x set in Mar 2026, and 300% above its historical low of 2.32x in Feb 2009.
Compare MSFT with Competitors
Top SOFTWARE - INFRASTRUCTURE stocks by market cap
Compare any two stocks →WallStSmart Analysis Synopsis
Data-driven financial summary for Microsoft Corporation (MSFT) · TECHNOLOGY › SOFTWARE - INFRASTRUCTURE
The Big Picture
Microsoft Corporation is a strong growth company balancing expansion with improving profitability. Revenue reached 305.5B with 17% growth year-over-year. Profit margins are strong at 39.0%, reflecting pricing power and operational efficiency.
Key Findings
ROE of 34.4% means the company generates strong returns on shareholder equity. Above 20% is considered top-tier.
Profit margin of 39.0% and operating margin of 47.1% demonstrate strong pricing power and operational efficiency.
What to Watch Next
Debt management: total debt of 123.3B is significantly higher than cash (24.3B). Monitor refinancing risk.
Sector dynamics: monitor SOFTWARE - INFRASTRUCTURE industry trends, competitive moves, and regulatory changes that could impact Microsoft Corporation.
Bottom Line
Microsoft Corporation offers an attractive blend of growth (17% revenue expansion) and improving fundamentals. The company is transitioning from pure growth to profitable growth, a critical inflection point. Watch for sustained margin expansion as the key signal.
This synopsis is generated from publicly available financial data. It is not financial advice. Always conduct your own research and consult a qualified financial advisor before making investment decisions.
Insider Transactions
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About Microsoft Corporation(MSFT)
NASDAQ
TECHNOLOGY
SOFTWARE - INFRASTRUCTURE
USA
Microsoft Corporation is an American multinational technology company which produces computer software, consumer electronics, personal computers, and related services. Its best known software products are the Microsoft Windows line of operating systems, the Microsoft Office suite, and the Internet Explorer and Edge web browsers. Its flagship hardware products are the Xbox video game consoles and the Microsoft Surface lineup of touchscreen personal computers. Microsoft ranked No. 21 in the 2020 Fortune 500 rankings of the largest United States corporations by total revenue; it was the world's largest software maker by revenue as of 2016. It is considered one of the Big Five companies in the U.S. information technology industry, along with Google, Apple, Amazon, and Facebook.