Company Analysis
Microsoft Corp
MSFT • Technology
AI Summary
Microsoft trades at a significant discount to its fair value, with a valuation of 420.21 compared to an estimated fair value of 533.57, indicating potential upside for growth-focused investors. The company's strong 29.8% EPS growth and high ROE of 33.1% highlight its robust earnings execution and competitive position across cloud, software, and devices. Its diversified product ecosystem and strategic investments, such as in AI, further solidify its growth prospects in the technology sector.
GoodStock Company Score
Score Breakdown
GoodStock Estimated Valuation
Valuation Range vs. Current Price
GoodStock Price Momentum
Momentum Indicators
Microsoft Corp
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GoodStockClassification
| Theme | Quality | Momentum | Value |
|---|---|---|---|
| Best in Class | + | + | + |
| Quality at a Price | + | + | - |
| Contrarian | + | - | + |
| Yesterday's News | + | - | - |
| Restructuring | - | + | + |
| Momentum Trap | - | + | - |
| Value Trap | - | - | + |
| Worst in Class | - | - | - |
Contrarian investments go against prevailing market trends. Savvy investors seek opportunities in undervalued assets with potential for a turnaround, betting on market misperceptions. Success depends on accurate analysis and the ability to identify positive catalysts others overlook.
Earnings History
Last beatActual EPS compared with analyst estimates.
| Fiscal Quarter | Actual | Estimate | Surprise |
|---|---|---|---|
|
Q3 2026
Mar 31, 2026
|
$4.27 | $4.14 | +3.1% |
|
Q2 2026
Dec 31, 2025
|
$4.14 | $4.03 | +2.6% |
|
Q1 2026
Sep 30, 2025
|
$4.13 | $3.74 | +10.5% |
|
Q4 2025
Jun 30, 2025
|
$3.65 | $3.44 | +6.2% |
|
Q3 2025
Mar 31, 2025
|
$3.46 | $3.28 | +5.3% |
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Financial Ratios
AI Financial Ratios Summary
The company's strong EPS of 16.79 combined with a healthy P/E ratio of 22.18 suggests that it is currently valued fairly in the market, reflecting solid earnings prospects. Its high ROE of 33.13 indicates efficient use of shareholders' equity, while the low debt-to-equity ratio (0.26) and exceptional interest coverage ratio (891.8) point to prudent leverage and robust debt management, contributing to financial stability. These positive interrelations suggest a well-performing company with growth potential; if these trends persist, the company could be well-positioned for stock appreciation as investors recognize its profitability and efficient capital structure.
- $16.8
- 22.18
- 33.13%
- 0.26%
- 891.8
- $1.24 M
- 1.35%
- $2780 B
Operational Ratios
AI Operational Ratios Summary
The company's strong operating margin of 46.75% and gross margin of 68.31% indicate high operational efficiency, allowing for substantial profitability relative to sales. The net profit margin of 39.34% further reflects effective expense management and robust profitability. Additionally, a solid return on assets of 19.15% suggests efficient utilization of assets to generate earnings, supporting sustained growth and potential for competitive advantages. The steady free cash flow CAGR of 9.62% alongside a significant CAPEX growth rate of 33.12% demonstrates ongoing investments in growth initiatives, which may enhance long-term profitability and expansion opportunities.
- 46.75%
- 68.31%
- 39.34%
- 19.15%
- $3.48
- 0.93%
- 9.62%
- 33.12%
Valuation Ratios
AI Valuation Ratios Summary
The company's valuation ratios suggest it is potentially undervalued; the PEG ratio of 0.75 indicates the stock may be attractively priced relative to its earnings growth. Additionally, the Price to SAP 500 of -45.99 is unusual and likely indicates negative adjustments or a data anomaly, but the solid book value and cash per share point to a firm with tangible assets supporting its valuation. Overall, these metrics imply the company could offer promising investment potential, provided further qualitative analysis confirms its financial health.
- $555
- $356
- $25.1
- -45.99%
- 0.75
- $38.1
- $46.2
- 12.7