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.
FY 2026 · Mkt cap
Decision snapshot: MSFT stock price vs M: 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 M's multiple
Needs M 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) · M FY 2026 (ended Jan 31, 2026). Fiscal years are not aligned.
Trendline
Ten 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 71% equity / 29% debt · EV / Revenue 0.32x · EV / EBITDA 4.77x
MSFT carries the larger enterprise value at $3.68T against $7.25B; M trades on the lower EV / Revenue multiple (0.32x vs 11.10x); M on the lower EV / EBITDA (4.77x 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.
Macy's, Inc. · implied price per share
Debt and bridge-cash inputs are required to translate enterprise value into equity value.
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
0.50x
Net debt / EBITDA
Leverage against operating earnings
-0.13x
0.78x
Cash and equivalents
Liquid reserves on the balance sheet
$76.84B
$1.25B
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.
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$49.52B
$2.43B
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 deserves a sustained premium multiple far above both its DCF range and M-comparison framework because its growth and profitability remain exceptional, then hold or buy selectively; otherwise, the current price looks stretched relative to the provided valuation anchors and favors trimming exposure.
MSFT’s current price of $425.30 implies -68.2% downside to M-multiple valuation of $135.40, driven mainly by its much richer trading multiples versus M. The valuation gap is extreme even though MSFT’s business quality is far superior, suggesting the market is assigning a large premium that is not justified by the simple relative framework.
Supporting Metrics