Microsoft Corporation (MSFT)

DCF Valuation · Technology · Software - Infrastructure

Valuation as at 2026-08-14 · see also the S&P 500 Most Undervalued screen

About Microsoft Corporation

Microsoft Corporation, a technology company, develops and supports a portfolio of technology solutions for individuals and businesses worldwide. It operates through three segments: Productivity and Business Processes, Intelligent Cloud, and More Personal Computing. The 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 on-premises and Office licensed on-premises.

Source: Yahoo Finance company profile · factual description, not KashVector commentary

Microsoft Corporation MSFT

Technology · Software - Infrastructure

Price
$496.88
Market Cap
$3689.61B
Free Cash Flow
$16.55B
Beta
1.10
P/E (TTM)
27.4x
52-Week Range
$349.20–$553.72

Microsoft Corporation's price & financial trends

Each card is labelled with its own reporting period — quarterly where Yahoo provides it for this market, annual otherwise.

Data as at 2026-08-14

Share price · last 2 years

$496.88 +19% vs 2024-08
S&P 500 $417.14$415.06$497.41$492.01$407.78$496.88 2024-082025-012025-062025-112026-042026-08

Earnings per share (diluted) Per quarter

$4.81 +32% vs Q2 '25
$3.65$3.72$5.16$4.27$4.81Q2 '25Q3 '25Q4 '25Q1 '26Q2 '26

Free cash flow Per quarter

$19.64B -23% vs Q2 '25
$25.57B$25.66B$5.88B$15.80B$19.64BQ2 '25Q3 '25Q4 '25Q1 '26Q2 '26

Dividend per share Per quarter

$0.91 +10% vs Q2 '25
$0.83$0.83$0.91$0.91$0.91Q2 '25Q3 '25Q4 '25Q1 '26Q2 '26

Value investing scale · Buffett · Dalio · Graham

Strong Fit
13 / 20 combined score

See the full Buffett, Dalio & Graham breakdown for MSFT →

Intrinsic value estimate · 5-year forecast

BEAR
$30.57
vs current $496.88
-93.8% ❌ Overvalued
BASE
$61.27
vs current $496.88
-87.7% ❌ Overvalued
BULL
$88.82
vs current $496.88
-82.1% ❌ Overvalued

Assumptions used in this valuation

Every input below is either fetched live from Yahoo Finance or a documented default — nothing is hidden.

Starting free cash flow
$16.55B
Reported free cash flow (Yahoo)
Risk-free rate
4.68% ● LIVE
Live 10-yr govt bond
Beta
1.10
Direct from Yahoo
Equity risk premium
5.50%
Market-specific seed
Cost of debt
5.28%
Synthetic rating AAA, ICR 50.9x
Tax rate
25.00%
Estimated default
Capital structure
E 97% / D 3%
Market cap vs total debt
Projection horizon
5 years
+ terminal value beyond
BearBaseBull
5-yr FCF growth12.3%24.7%30.0%
Terminal growth2.5%2.5%2.5%
WACC (discount rate)11.50%10.50%9.50%

Cost of Equity = Risk-free rate + Beta × Equity Risk Premium = 4.68% + 1.10 × 5.50% = 10.73% · WACC = weighted by 97%/3% capital structure

These numbers come from running Microsoft Corporation's cash flows through the mechanical DCF formula and assumptions above — not from any view on the news, management, or MSFT's competitive position. What is DCF?

Want to test your own growth or discount-rate assumptions?Open the full interactive calculator, pre-filled with MSFT →

More S&P 500 stocks we've valued

Not financial advice. DCF valuations are highly sensitive to assumptions — small changes in growth rate or discount rate produce large swings in output. This is a mechanical calculation, not a recommendation to buy, hold, or sell.

About this valuation

Computed on 2026-08-14 from Yahoo Finance data, using the same engine as the full DCF tool and the S&P 500 Most Undervalued screen. Every figure above is a point-in-time snapshot of that date — change any assumption yourself in the interactive tool for a live one.

Frequently asked questions

Is Microsoft Corporation (MSFT) undervalued?

The Base-case DCF estimates intrinsic value at $61.27 vs a price of $496.88 on 2026-08-14 — a -87.7% margin, so the Base case reads overvalued. This is a mechanical output, not advice.