Should I Buy MSFT Stock in 2026?
Data-driven analysis and honest assessment for Microsoft Corp
Current Price: $397.23P/E: 36.3
Decision Score
Hold
Based on 6 fundamental factors
Score Breakdown:
High P/E of 36.3 indicates premium
Solid growth of 15%
Excellent margins (0% net)
D/E: 0.80, Current Ratio: 1.35
Low FCF yield of 1.9%
Balanced insider activity
Key Investment Metrics
Current Price
$397.23
P/E Ratio
36.30
Revenue Growth
14.9%
Profit Margin
0.4%
Market Cap
N/A
Dividend Yield
0.01%
How MSFT Compares to Competitors
Understanding how MSFT stacks up against peers helps inform your investment decision.
How MSFT Compares to Peers
Upcoming Events for MSFT
+5 Reasons TO Buy MSFT
1. Strong return on capital of 38%
strongROIC above 20% demonstrates excellent capital allocation, a hallmark of quality businesses.
2. High gross margins of 69%
moderateGross margins above 50% typically indicate strong brand value or intellectual property moats.
3. Steady revenue growth of 15%
weakConsistent revenue growth demonstrates business stability and market share maintenance.
-5 Reasons NOT to Buy MSFT
1. Thin profit margins of 0.4%
high riskLow margins provide little cushion against cost increases or pricing pressure.
2. Premium valuation at 36x earnings
medium riskP/E of 36 requires sustained growth to justify. Multiple compression risk exists.
3. High PEG ratio of 2.3
medium riskPEG above 2 suggests expensive relative to growth rate.
4. Low free cash flow yield of 1.9%
low riskLimited cash generation means most value comes from future growth expectations.
Who Should Buy MSFT?
Investment Profile
Risk Level
Very High
Recommended Holding Period
3-5 years
Best For:
Not Suitable For:
- ✗
Growth Investors
Limited 15% growth may disappoint
- ✗
Value Investors
Premium P/E of 36 doesn't fit value criteria
- ✗
Income-Focused Retirees
Low 0.0% yield
- ✗
Risk-Averse Investors
Very High risk may cause uncomfortable volatility
Consider These Alternatives
If you're interested in MSFT, compare these Information Technology peers:
Pro tip: Compare MSFT directly with competitors using our comparison tool to see which stock better fits your criteria.
Wall Street Expectations
Analyst estimates for MSFT provide insight into market expectations:
annual
EPS: $N/A
annual
EPS: $N/A
annual
EPS: $N/A
Get the Full Picture
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Frequently Asked Questions
What is MSFT stock price today?
MSFT (Microsoft Corp) stock is trading at $397.23 as of the latest market data. Stock prices update in real-time during market hours (9:30 AM - 4:00 PM ET).
Is MSFT stock going up or down today?
MSFT stock price movements are influenced by market conditions, news, earnings reports, and investor sentiment. Check our live dashboard for real-time price changes and technical indicators.
Should I buy MSFT stock now?
The decision to buy MSFT depends on your investment strategy, risk tolerance, and financial goals. Our AI analysis evaluates fundamentals, valuation metrics, growth prospects, and market conditions to help inform your decision.
Is MSFT a buy, hold, or sell right now?
Our AI-powered analysis provides buy/hold/sell recommendations for MSFT based on multiple factors including valuation, growth metrics, technical indicators, and analyst consensus. Visit our dashboard for the latest recommendation.
Is MSFT stock overvalued or undervalued?
MSFT currently trades at a P/E ratio of 36.30, which may indicate premium valuation. Our DCF calculator provides intrinsic value estimates to help determine if MSFT is fairly priced.
What is MSFT's P/E ratio?
MSFT has a price-to-earnings (P/E) ratio of 36.30, which measures how much investors are willing to pay per dollar of earnings. Compare this to industry peers and historical averages for context.
What is MSFT's market cap?
Visit our dashboard for MSFT's current market capitalization and other key metrics.
What is MSFT's price to book ratio?
MSFT trades at a price-to-book (P/B) ratio of 10.76, which compares the stock price to the company's book value per share. A P/B below 1.0 may indicate undervaluation, while above 3.0 may suggest premium pricing.
Deep Dive Analysis
Explore comprehensive analysis tools to make an informed decision about Microsoft Corp
Full Stock Analysis
Complete MSFT overview with charts and data
Is MSFT Undervalued?
DCF valuation and intrinsic value analysis
Dividend Analysis
Yield, payout ratio, and dividend history
Growth Analysis
Revenue, earnings, and expansion metrics
Financial Health
Debt, liquidity, and balance sheet strength
Price Prediction
2026 forecast and price targets
Stock Forecast
12-month price forecast and analyst targets
Earnings Date
Next earnings date and historical results
Compare Before You Buy
See how MSFT stacks up against its competitors
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Disclaimer
This analysis is for informational purposes only and should not be considered financial advice. The decision score and recommendations are based on quantitative factors and do not account for all risks, your personal financial situation, or qualitative factors. Always do your own research and consider consulting with a financial advisor before making investment decisions.