Microsoft Corp.
MSFT
FAIR PRICE VALUATION
Updated March 11, 2026
Model: DCF 50% · Relative 30% · Consensus 20%
MARKET PRICE
$405.80
FAIR PRICE
$312.38
MARGIN
$93.42
P/E Ratio
35.8x
Div. Yield
0.72%
ROE
39.2%
Market Cap
$3.02T
Mega-cap
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KEY FACTS
CEO
Satya Nadella
FOUNDED
1975
HEADQUARTERS
Redmond, WA
SECTOR
Technology
EXCHANGE
NASDAQ
METHODOLOGY
How we calculate MSFT's fair price
Microsoft Corp.'s fair price of $312.38 is derived from a blended model that combines DCF analysis (50%), relative valuation against Technology peers (30%), and analyst consensus (20%). At the current market price of $405.80, MSFT trades 29.9% above its calculated fair value. The stock's P/E of 35.8x compares to a Technology sector average of 28.5x, representing a premium to peers.
DCF MODEL · 50%
Discounted cash flow analysis based on projected free cash flows, discounted at a rate reflecting MSFT's risk profile.
RELATIVE · 30%
Comparing MSFT's P/E of 35.8x against the Technology sector average of 28.5x.
ANALYST · 20%
Aggregated analyst price targets for MSFT, weighted by recency and analyst accuracy.
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What is the fair price of MSFT?+
Based on our blended model combining DCF analysis (50%), relative valuation against Technology peers (30%), and analyst consensus (20%), the fair price for Microsoft Corp. is $312.38. At the current market price of $405.80, MSFT trades 29.9% above its calculated fair value.
Is MSFT overvalued or undervalued?+
Microsoft Corp. is currently overvalued based on our valuation model. The stock trades at $405.80, which is 29.9% above the fair price of $312.38. The P/E ratio of 35.8x represents a 25.6% premium to the Technology sector average of 28.5x.
How often is MSFT's fair price updated?+
We update fair price calculations for MSFT daily after market close. The current fair price of $312.38 was last updated on March 11, 2026, incorporating the latest price of $405.80 and sector multiples.
What factors affect MSFT's fair price calculation?+
MSFT's fair price of $312.38 is derived from DCF analysis (50% weight), relative valuation against Technology peers at 28.5x P/E (30% weight), and analyst consensus (20% weight). Key metrics include P/E of 35.8x, ROE of 39.2%, and dividend yield of 0.72%.
Is MSFT a good buy right now?+
At $405.80, MSFT trades 29.9% above our fair value estimate of $312.38. The stock is currently overvalued. P/E of 35.8x compares to sector average of 28.5x. ROE stands at 39.2% (exceptional).
How does MSFT P/E compare to its sector?+
MSFT's P/E ratio of 35.8x is 25.6% higher than the Technology sector average of 28.5x. This represents a premium valuation relative to peers in the sector.
Does MSFT pay dividends?+
MSFT has a dividend yield of 0.72%, which is below the Technology sector average of 1.2%.
What is MSFT's return on equity?+
MSFT has a return on equity (ROE) of 39.2%, which is classified as exceptional. This compares to the Technology sector average ROE of 24.5%, making MSFT's ROE above sector average.
How does MSFT compare to AAPL?+
MSFT trades at 29.9% above fair value with P/E of 35.8x, while AAPL trades at 35.1% above fair value with P/E of 33.2x. MSFT's ROE of 39.2% compares to AAPL's 157.4%.