Microsoft Corporation
$3.68T- Market cap
- $3.71T
- Debt
- +$49.52B
- Cash
- −$76.84B
Capital structure 99% equity / 1% debt · EV / Revenue 11.10x · EV / EBITDA 17.97x
Compare price, profitability, solvency, and SEC-reported financials side by side—before deciding which assumptions deserve a closer look.
Decision snapshot: MSFT stock price vs ADP: inconclusive Relative valuation is incomplete for this pair. Review the available filing metrics before drawing a conclusion.
Quick read
Each company valued on the other's multiple, then compared with the market price.
Implied fair value · at ADP's multiple
Needs ADP P/E.
Implied fair value · at MSFT's multiple
Snapshot Sep 4, 4:00 PM ET
Metric by metric
Where each company leads, and how wide the gap is.
Growth edge
Pricing power
Operating leverage
Multiple premium
Not comparable
Lower leverage
Statements
Core statements aligned to each company's latest fiscal year.
SEC periods: MSFT FY 2026 (ended Jun 30, 2026) · ADP FY 2026 (ended Jun 30, 2026).
Trendline
Five fiscal years of revenue, earnings, and margins before underwriting a re-rating.
Price framework
Market cap plus debt, less cash.
Capital structure 99% equity / 1% debt · EV / Revenue 11.10x · EV / EBITDA 17.97x
Capital structure 96% equity / 4% debt · EV / Revenue 5.06x · EV / EBITDA 15.83x
MSFT carries the larger enterprise value at $3.68T against $111.02B; ADP trades on the lower EV / Revenue multiple (5.06x vs 11.10x); ADP on the lower EV / EBITDA (15.83x vs 17.97x).
Price framework
The same filing-backed model used on each company's valuation page, with company-specific inputs and calculated scenarios.
MICROSOFT CORPORATION · implied price per share
Debt and bridge-cash inputs are required to translate enterprise value into equity value.
AUTOMATIC DATA PROCESSING, INC. · implied price per share
Five annual free-cash-flow observations are required for the filing-backed baseline.
Balance sheet health
Financial health checks to separate durable balance sheets from potential value traps.
Financial strength on a 0–9 scale.
Bankruptcy-risk signal from balance sheet and earnings power.
Debt / equity
Total debt against shareholders' equity
0.11x
0.82x
Net debt / EBITDA
Leverage against operating earnings
-0.13x
0.10x
Cash and equivalents
Liquid reserves on the balance sheet
$76.84B
$4.23B
Total debt
Interest-bearing obligations outstanding
Comparable set
Where the pair sits against the wider comparable set.
Keep comparing
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$49.52B
$4.97B
LLM-powered synthesis
An on-demand narrative read of the same deterministic data.
This explanation uses an earlier data snapshot or evidence version. Review its generation date and the current figures, or refresh after signing in.
If you believe MSFT can sustain its 17.8% revenue growth and 67.9% gross margin profile, then hold or accumulate on weakness because the business quality is meaningfully superior to ADP even though the current price is already near fair value on P/E.
MSFT's current price of $487.72 is almost identical to its P/E-derived implied price of $489.04, leaving just 0.3% upside/downside. On relative terms, MSFT looks expensive on sales and EBITDA versus ADP, but that is partially justified by its much stronger growth and margin profile.
Supporting Metrics