Microsoft Corporation
11.81xPrice / tangible book
Market cap
$3.59T
Tangible equity
$304.13B
Price / tangible book
11.81x
Price / book
8.12x
Return on equity
30.2%
Return on assets
17.6%
Efficiency ratio
—
Compare price, profitability, solvency, and SEC-reported financials side by side—before deciding which assumptions deserve a closer look.
FY 2025 ·
Decision snapshot: MSFT stock price at premium vs JPM $483.62 current versus $288.90 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 JPM's multiple
Implied fair value · at MSFT's multiple
Live quote
As of 2025-12-31
Metric by metric
Filter, sort, and scan the equity metrics that matter most for banks: book value, tangible book, returns, and operating efficiency.
Multiple premium
Multiple premium
Profitability edge
Asset efficiency edge
Lower is better
Statements
Bank-focused income statement and equity metrics aligned to the reporting windows.
SEC periods: MSFT FY 2026 (ended Jun 30, 2026) · JPM 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
Tangible book and profitability anchor a bank, not enterprise value.
Deposits and cash-like balances distort enterprise value for banks, so this section reads equity value, tangible book and profitability instead.
Price / tangible book
Market cap
$3.59T
Tangible equity
$304.13B
Price / tangible book
11.81x
Price / book
8.12x
Return on equity
30.2%
Return on assets
17.6%
Efficiency ratio
—
Price / tangible book
Market cap
$856.52B
Tangible equity
$306.21B
Price / tangible book
2.80x
Price / book
2.36x
Return on equity
15.7%
Return on assets
1.3%
Efficiency ratio
142.8%
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
JPMORGAN CHASE & CO · implied price per share
Bank model off — standard DCF modelling is disabled for financial institutions.
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
0.92x
Net debt / EBITDA
Leverage against operating earnings
-0.13x
-0.59x
Cash and equivalents
Liquid reserves on the balance sheet
$76.84B
$481.02B
Total debt
Interest-bearing obligations outstanding
Comparable set
Where the pair sits against the wider banking comparable set.
Keep comparing
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MSFT vs PNC
US BANCORP \DE\
MSFT vs USB
$49.52B
$332.67B
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 17.8% revenue growth and 40.3% net margins for long enough to justify a premium multiple, then holding or adding may make sense because the balance sheet and profitability are strong; otherwise, the current price looks stretched versus both the P/E-implied value and the DCF range.
MSFT trades at a much richer valuation than JPM on both earnings and sales, with a 26.9x P/E versus 16.1x and a 10.4x P/S versus 5.2x. Despite superior operating metrics, the current price of $464.72 sits well above the P/E implied price of $288.90, implying -37.8% downside in this framework.
Supporting Metrics