Microsoft Corp (MSFT) has a current Price-to-Book (P/B) ratio of 9.68. Compared to its 3-year average P/B ratio of 11.40, the current P/B ratio is approximately -15.08% higher. Relative to its 5-year average P/B ratio of 12.16, the current P/B ratio is about -20.34% higher. Microsoft Corp (MSFT) has a Forward Free Cash Flow (FCF) yield of approximately 2.22%. Compared to its 3-year average FCF yield of 2.29%, the current FCF yield is approximately -3.06% lower. Relative to its 5-year average FCF yield of 2.57%, the current FCF yield is about -13.61% lower.

Competitors Valuation Multiple

AI Analysis

The average P/S ratio for MSFT competitors is 7.08, providing a benchmark for relative valuation. Microsoft Corp Corp (MSFT.O) exhibits a P/S ratio of --, which is -100% above the industry average. Given its robust revenue growth of 16.72%, this premium appears unsustainable.

P/E

P/S

EV/EBITDA

EV/EBIT

Earnings Growth

Market Cap

Performance Decomposition

AI Analysis

Market capitalization of MSFT increased by 0.00% over the past 1 year(s). The primary factor behind the change was an decrease in Unknown from 0.00 to 0.00.

The secondary factor is the Unknown, contributed 0.00% to the performance.

Overall, the performance of MSFT in the past 1 year(s) is driven by Unknown.

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Frequently Asked Questions

Is MSFT currently overvalued or undervalued?

What is Microsoft Corp (MSFT) fair value?

MSFT's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. The fair price of Microsoft Corp (MSFT) is between 392.85 to 460.61 according to relative valuation method.

How does MSFT's valuation metrics compare to the industry average?

The average P/S ratio for MSFT's competitors is 7.08, providing a benchmark for relative valuation. Microsoft Corp Corp (MSFT) exhibits a P/S ratio of --, which is -100.00% above the industry average. Given its robust revenue growth of 16.72%, this premium appears unsustainable.

What is the current P/B ratio for Microsoft Corp (MSFT) as of Mar 02 2026?

As of Mar 02 2026, Microsoft Corp (MSFT) has a P/B ratio of 9.68. This indicates that the market values MSFT at 9.68 times its book value.

What is the current FCF Yield for Microsoft Corp (MSFT) as of Mar 02 2026?

As of Mar 02 2026, Microsoft Corp (MSFT) has a FCF Yield of 2.22%. This means that for every dollar of Microsoft Corp's market capitalization, the company generates 2.22 cents in free cash flow.

What is the current Forward P/E ratio for Microsoft Corp (MSFT) as of Mar 02 2026?

As of Mar 02 2026, Microsoft Corp (MSFT) has a Forward P/E ratio of 28.45. This means the market is willing to pay $28.45 for every dollar of Microsoft Corp's expected earnings over the next 12 months.

What is the current Forward P/S ratio for Microsoft Corp (MSFT) as of Mar 02 2026?

As of Mar 02 2026, Microsoft Corp (MSFT) has a Forward P/S ratio of 10.41. This means the market is valuing MSFT at $10.41 for every dollar of expected revenue over the next 12 months.

MSFT Valuation