MSFT

Nasdaq

MICROSOFT CORP

Information Technology, Systems Software

$499.99

close 7 Aug 2026

-4.17%

52-week change

$3.71T

market cap

$349.20

$553.72

52-week range

Expected price

$542.08 – $662.54

Current price

$499.99

Signal

Could be undervalued

A historical-multiple reference, never a fair-value claim. The band uses only data public at each date and ends at the latest month — no forward estimates.

Current multiples

P/E (TTM)27.85x

P/S (TTM)11.19x

P/B8.39x

EV/EBITDA (TTM)19.69x

FCF yield (TTM)1.80%

PEG (TTM, GAAP)1.22

Context

P/E, own 5-year average32.36x

P/E, sector median37.34x*

Price at 5-year median P/E$612.44*

Indicated dividend yield0.73%

Forward — analyst consensus

Forward P/E (FY2027)25.41x*

Forward P/E (FY2028)21.30x

Forward PEG1.32*

Consensus EPS FY2027 (35 analysts)$19.67

EPS growth (FY2027→FY2028)19.29%

Revenue growth (FY2027)17.84%

Street view

Price target (mean)$563.35*

Target upside12.67%

Ratings (buy / hold / sell)53 / 3 / 0

FY2027 EPS revisions, 30d (up / down)4 / 6

5-year history

Dashed line: average of month-end values

P/E (TTM)

P/S (TTM)

P/B

FCF yield (TTM)

Dividend yield

period to 30 Jun 2026, filed 29 Jul 2026, close 7 Aug 2026

Discounted cash flow

Ten projected years plus a perpetuity, prefilled from filings — a model to argue with, never a fair-value claim.

Free cash flow, last ten years and TTM

5Y CAGR +3.60%10Y CAGR +10.37%

Assumptions

Growth rate, years 1–10%

Perpetual growth%Discount rate%

Base FCF$M

As filed — not assumptions

Current price$499.99

Cash & equivalents$20.94B

Total debt$40.29B

Shares outstanding7.43B

Result

DCF price per share$180.55

Current price$499.99

Margin of safety-63.89%

PV of years 1–10$536.70B

PV of terminal value$823.59B

Equity value$1.34T

Market-implied growth+16.60%

Projected FCF, years 1–10

Hover for PV and growth

Projection detail

Override growth for any year; blank years use the uniform rate

Year	2027	2028	2029	2030	2031	2032	2033	2034	2035	2036	Terminal
Growth, %											2.5
FCF	$69.40B	$71.90B	$74.49B	$77.17B	$79.94B	$82.82B	$85.80B	$88.89B	$92.09B	$95.41B	$1.78T
PV	$64.26B	$61.64B	$59.13B	$56.72B	$54.41B	$52.19B	$50.07B	$48.03B	$46.07B	$44.19B	$823.59B

period to 30 Jun 2026, filed 29 Jul 2026, close 7 Aug 2026