Microsoft Corporation
$3.56T- Market cap
- $3.59T
- Debt
- +$49.52B
- Cash
- −$76.84B
Capital structure 99% equity / 1% debt · EV / Revenue 10.74x · EV / EBITDA 17.14x
Compare price, profitability, solvency, and SEC-reported financials side by side—before deciding which assumptions deserve a closer look.
Decision snapshot: MSFT stock price near parity vs IBM $483.62 current versus $476.00 implied using P/E multiple.
Quick read
Each company valued on the other's multiple, then compared with the market price.
Implied fair value · at IBM's multiple
Implied fair value · at MSFT's multiple
Live quote
As of 2025-12-31
Metric by metric
Where each company leads, and how wide the gap is.
Growth edge
Pricing power
Operating leverage
Multiple premium
Premium justified
Lower leverage
Statements
Core statements aligned to each company's latest fiscal year.
SEC periods: MSFT FY 2026 (ended Jun 30, 2026) · IBM FY 2025 (ended Dec 31, 2025). Fiscal years are not aligned.
Trendline
Six 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 10.74x · EV / EBITDA 17.14x
Capital structure 82% equity / 18% debt · EV / Revenue 4.83x · EV / EBITDA 15.66x
MSFT carries the larger enterprise value at $3.56T against $326.13B; IBM trades on the lower EV / Revenue multiple (4.83x vs 10.74x); IBM on the lower EV / EBITDA (15.66x vs 17.14x).
Price framework
Discounted free cash flow, then bridged to a per-share price. Same assumptions applied to both companies.
MICROSOFT CORPORATION · implied price per share
Bear
$216.80
Base
$255.06
Bull
$293.32
INTERNATIONAL BUSINESS MACHINES CORP · implied price per share
Bear
$110.58
Base
$130.10
Bull
$149.61
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
1.88x
Net debt / EBITDA
Leverage against operating earnings
-0.13x
2.26x
Cash and equivalents
Liquid reserves on the balance sheet
$76.84B
$14.20B
Total debt
Interest-bearing obligations outstanding
Comparable set
Where the pair sits against the wider comparable set.
Keep comparing
Open adjacent comparisons from the same industry to pressure-test the read across multiple pairs.
$49.52B
$61.26B
Live quote
LLM-powered synthesis
An on-demand narrative read of the same deterministic data.
Based on an earlier data snapshot. Review the filing dates below or refresh after signing in.
If you believe MSFT can sustain its higher growth, margins, and balance sheet strength versus IBM, then hold or accumulate on weakness rather than chase at current levels because the fundamental premium is real but the P/E-based model still shows -7.4% downside.
MSFT is trading above the model-implied price of $361.71 by 7.4%, even though its historical valuation band suggests a much higher range. The gap appears driven by the choice of P/E multiple, which contrasts with MSFT's stronger growth and profitability versus IBM.
Supporting Metrics