Stock Valuation / MSFT
Is Microsoft Corporation (MSFT) Overvalued? Fair Value & 5-Year Target
Microsoft Corporation trades at $543.45 (P/E 30.28). Our reference model estimates a fair value of $426.69 at its recent average P/E of 23.77.
| Current price | $543.45 |
|---|---|
| Current EPS | $17.95 |
| Current P/E | 30.28 |
| Average P/E | 23.77 |
| Fair value (at avg P/E) | $426.69 |
| Upside to fair value | -21.5% |
| Illustrative 5-yr target (25× P/E, 15% growth) | $902.60 |
What drives MSFT's valuation
Changing either assumption moves the target: a higher P/E multiple or faster EPS growth raises fair value, a lower multiple or slower growth lowers it. The interactive dashboard lets you edit both and re-run the model instantly.
About Microsoft Corporation
Microsoft Corporation, a technology company, develops and supports a portfolio of technology solutions for individuals and businesses worldwide. Its products include operating systems, server applications, business solution applications, software development tools, desktop and server management tools, and video games; and devices, such as PCs, tablets, gaming and entertainment consoles, other intelligent devices, and related accessories. The company's Productivity and Business Processes segment offers Microsoft 365 Commercial, Enterprise Mobility + Security, Power BI, Exchange, SharePoint, Microsoft Teams, Microsoft 365 Security and Compliance, Microsoft 365 Copilot, and Windows Commercial o
Frequently asked questions
What is MSFT's fair value?
At its recent average P/E of 23.77, Microsoft Corporation (MSFT) has a reference fair value of about $426.69, which is -21.5% versus the current price of $543.45.
Is Microsoft Corporation (MSFT) overvalued or undervalued?
Based on the average-P/E reference model, Microsoft Corporation looks overvalued relative to fair value by roughly +21.5%. This is a model output, not investment advice — change the P/E and growth assumptions in the dashboard for your own view.
What is a 5-year price target for MSFT?
Under an illustrative model of 25× P/E and 15% annual EPS growth, the implied 5-year target is $902.60. Adjust both inputs on the interactive page to match your assumptions.
Open the interactive MSFT valuation dashboard →
Figures are for informational purposes only and are not investment advice. Data as of 2026-10-14.