Microsoft Corporation
MSFTTechnology · Software - Infrastructure · NASDAQ
$516.00
P/E 23.8×
Is Microsoft Corporation (MSFT) Undervalued? Valuation & Fair Price
At $516.00, 3 of the 4 frameworks would pass on Microsoft Corporation today — Warren Buffett, Benjamin Graham, and Phil Town (Rule #1) rate it Avoid and Peter Lynch rates it Hold. Each model calculates its own fair value and margin of safety; create a free account to see the exact buy price behind every verdict.
Valuo fair-value verdict
Microsoft Corporation looks 33% overvalued
MSFT trades at $516.00 versus a blended fair value of $347.33 across 4 investor frameworks. That's a 33% premium over our estimate — the exact buy-below price from each framework is below.
The four investor lenses
See how each legend judges MSFT
Pick a lens — the fair-value rail and its checklist update. The exact prices unlock with a free account.
Buffett: Wonderful businesses at a fair price — moat, high returns on capital, owner earnings.
Where Buffett marks fair value — the exact price is in the full analysis.
Buffett's checklist
Return on Equity
ROE Consistency
ROE Quality (Low Leverage)
Debt Levels
The full checklist, the exact fair value, and all four lenses side by side
Unlock free →The six questions · MSFT
signal free · score locked
- Is it cheap enough?Weak
A great business at the wrong price is still a bad buy.
Price score — free accountP/E · PEG
- Is this a good business?Strong
Returns on capital, margins, and the cash they throw off.
Quality score — free accountROIC · margins
- Can it survive a bad year?Mixed
Debt, liquidity, and balance-sheet resilience.
Safety score — free accountDebt · liquidity
- Are the numbers honest?Strong
Whether reported profit is backed by real cash.
Integrity score — free accountCash-backed profit
- Is it getting better?Strong
Revenue, earnings, and cash-flow trajectory.
Growth score — free accountRevenue · earnings
- Who runs it — and are they buying?Strong
Capital allocation, dilution, and insider conviction.
Stewardship score — free accountDilution · insiders
Strong on Quality, Integrity, Growth, Stewardship; weak on Price.
Inside · Price
Price is what you pay for the cash a business earns. Roughly under ~15× earnings is cheap; over ~30× the market is already pricing in strong growth, so you need that growth to show up.
The exact number, the reference bands, and each legend's take unlock free.
Insider & congress activity
Are insiders buying MSFT?
Over recent SEC Form 4 filings, MSFT insiders bought $0 and sold $85.9M of stock across 23 open-market trades. Insiders sell for many reasons, but they buy for one.
| Insider | Action | Shares | Value | Date |
|---|---|---|---|---|
| Hood AmyEVP, Chief Financial Officer | Sell | 3,387 | $1.8M | Oct 13, 2026 |
| Hood AmyEVP, Chief Financial Officer | Sell | 2,927 | $1.6M | Oct 13, 2026 |
| Hood AmyEVP, Chief Financial Officer | Sell | 991 | $542K | Oct 13, 2026 |
| Hood AmyEVP, Chief Financial Officer | Sell | 4,339 | $2.2M | Sep 14, 2026 |
| Hood AmyEVP, Chief Financial Officer | Sell | 10,433 | $5.2M | Sep 14, 2026 |
Members of Congress have also reported 50 trades in MSFT. See the full insider & congress timeline.
Source: SEC Form 4 filings. Open-market buys & sells only. Not investment advice.
See the interactive insider chart & every tradeBear · base · bull
Three ways MSFT could play out
A fair-value target for each scenario, with the assumptions behind it.
Bear case
Bear case price target — free accountGrowth disappoints and the multiple compresses — the downside if things go wrong.
Base case
Base case price target — free accountThe most likely path given current fundamentals — the scenario to anchor on.
Bull case
Bull case price target — free accountExecution beats expectations and growth holds — the upside if things go right.
Company financials
5-Year Financials
Income statement highlights — annual, USD
| Metric | 2026 | 2025 | 2024 | 2023 | 2022 |
|---|---|---|---|---|---|
| Revenue | $331.8B | $281.7B | $245.1B | $211.9B | $198.3B |
| Rev. Growth | +17.8% | +14.9% | +15.7% | +6.9% | — |
| Net Income | $133.7B | $101.8B | $88.1B | $72.4B | $72.7B |
| Net Margin | 40.3% | 36.1% | 36.0% | 34.1% | 36.7% |
| EPS (Diluted) | $18.00 | $13.70 | $11.86 | $9.72 | $9.70 |
About Microsoft Corporation
Microsoft Corporation is a prominent global technology firm that invents, markets, and provides ongoing assistance for a diverse range of software, digital services, computing devices, and comprehensive solutions. Its operations are organized into three primary divisions: Productivity and Business Processes, Intelligent Cloud, and More Personal Computing. The Productivity and Business Processes segment delivers crucial tools for both enterprises and individual users. This includes the extensive Office suite (comprising Exchange, SharePoint, Microsoft Teams, Office 365 Security and Compliance, Microsoft Viva, and Skype for Business), along with popular consumer offerings like Skype, Outlook.com, OneDrive, and LinkedIn. It also features Dynamics 365, a suite of integrated cloud and on-premises business applications tailored for organizations. The Intelligent Cloud division focuses on sophisticated infrastructure and platform services. Here, Microsoft licenses key products such as SQL Server, Windows Servers, Visual Studio, System Center, and associated Client Access Licenses. It also includes GitHub, a leading platform for developer collaboration and code hosting; Nuance, offering advanced AI solutions for healthcare and businesses; and Azure, its expansive cloud computing platform. This segment further encompasses enterprise support, Microsoft consulting services, and Nuance professional services, assisting clients with the development, deployment, and management of Microsoft's server and desktop technologies, alongside offering product training and certification. Finally, the More Personal Computing segment covers a broad spectrum of consumer and commercial computing experiences. It generates revenue through Windows operating system licensing, including agreements with original equipment manufacturers (OEMs), non-volume licensing, and various Windows Commercial offerings (such as volume licensing and cloud services), as well as patent licensing and Windows Internet of Things (IoT). This division also supplies its own hardware, including Surface devices, PC accessories, and gaming/entertainment consoles. Its Gaming portfolio features Xbox hardware, content, and subscription services, in addition to video games and royalties from third-party titles. Furthermore, it manages search services like Bing and Microsoft's advertising platforms. Microsoft distributes its extensive product line via numerous channels, including original equipment manufacturers, wholesale distributors, and various resellers, complementing direct sales through digital marketplaces, its own online storefronts, and physical retail outlets. The company, established in 1975, maintains its headquarters in Redmond, Washington.
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Data as of Oct 12, 2026 · price updated Nov 3, 2026. Sourced from SEC filings & Financial Modeling Prep.
Educational Use Only · Not Financial Advice
Analysis, scores, valuations, and buy zones are derived from publicly documented investor frameworks (Buffett, Lynch, Benjamin Graham, Phil Town) for learning purposes only. They are not recommendations from licensed financial advisors. Past performance does not guarantee future results. Prices may be delayed up to 15 minutes. Always conduct your own research before making any investment decisions.