Is the price fair?
What MSFT's price assumes
Microsoft Corporation trades at 27.7× earnings against 31.8× for the median Software - Infrastructure name, cheaper than its own group.
27.7
Trailing P/E · Software - Infrastructure median 31.8 · cheaper than the typical name in its group
- Price / sales
- 8.64
Price / sales · as of 2026-Q1
- Free cash flow yield
- 2.4%
Free cash flow yield · Software - Infrastructure median 5.3%
- Growth the price implies
- +16%
Growth the price implies · The price pays for +16% free cash flow growth a year for a decade; the business has delivered +4.0% a year over the last three.
Details›
- Price / book2026-Q1
- 6.64
- EV / EBIT2026-Q1
- 18.5
- EV / sales2026-Q1
- 8.67
- Technology median P/E376 names
- 37.0
- Software - Infrastructure median P/E81 names
- 31.8
- Free cash flow, trailing twelve months
- $67.0B
- Market capitalisation
- $2.82T
- 3-year revenue growth
- +16%
- 3-year free cash flow growth
- +4.0%
| Method | Per share |
|---|---|
| Its own P/E history, lower quartile | $489.80 |
| Its own P/E history, median | $561.07 |
| Its own P/E history, upper quartile | $599.18 |
| 52-week range | $356.00 – $538.66 |
| Today | $497.68 |
Multiples from SEC filings and end-of-day closes; implied growth from a reverse discounted cash flow. Group medians across the names Ryufin tracks.
Software - Infrastructure
Ranks #9 of 78 by Smart Score