Fundamentals · MSFT
Valuation Summary for MSFT
AI-generated plain-English read of valuation summary for MSFT. Updated daily.
Fair multiples, compressing
moderateMultiples (17.2x) are still fair but compressing, slipping toward cheap if the trend continues. Either the market is rotating out or expectations are moderating.
What will probably happen
- Multiples are compressing: the stock is drifting cheaper; watch for a stabilisation before interpreting as value.
What to do
- If you HOLD this stock
- Reasonably priced with stable multiples: a hold-the-line setup. No urgent action from the valuation dimension.
- If you're EVALUATING this stock
- Acceptable entry: fair multiples don't demand a discount premium. Expect returns roughly in line with sector beta.
- If you trade OPTIONS
- No valuation edge from multiples alone. Trade other signals (momentum, earnings) rather than valuation-driven structures.
12 quarters / 3 populated multiples: directionally informative; use more data for full conviction.
Technical details
Technical analysis
- P/E (trailing)
- 17.2x
- P/E (forward)
- --
- EV/EBITDA
- --
- P/Sales
- 6.8x
- P/Book
- 6.3x
- EV/Revenue
- --
- FCF yield
- --
- Earnings yield
- --
- Dividend yield
- 1.0%
- Absolute valuation
- Fairly Valued
- Sector comparison
- Unknown Vs Sector
- Multiple trajectory
- Compressing
- Income profile
- Growth Profile
- History (quarters)
- 12
- Sector context
- Technology
Key levels
| Level | Value |
|---|---|
| pe ratio | 17.192 |
| ps ratio | 6.78 |
| pb ratio | 6.276 |
| dividend yield | 0.01 |
| prior year pe | 29.338 |
| n quarters | 12 |
Caveats
- Multiples should be read alongside growth and quality metrics: a low P/E on declining earnings isn't cheap, it's a value trap warning.
- Sector context wasn't provided; absolute multiples may mislead without industry comparison.