--- title: Microsoft (MSFT) — intrinsic value and fair price canonical: https://sweetvaluelab.com/stocks/msft ticker: MSFT as_of: 2026-10-17 sector: Technology industry: Software - Infrastructure --- # Microsoft (MSFT) Microsoft (MSFT) closed at $529.05 on Oct 16, 2026, overvalued by 10% vs its model value of $479.20 (from a five-year discounted cash flow). ## Key figures | Figure | Value | | --- | ---: | | Last close | $529.05 (Oct 16, 2026) | | Model value (from a five-year discounted cash flow) | $479.20 | | Price vs model | overvalued by 10% vs model | | Range of that model | $321.85 – $953.98 | | Market value | $3.9T | | P/E (fiscal 2026) | 29.5 | | Net margin (fiscal 2026) | 40.3% | | Free cash flow (fiscal 2026) | $67.0B | | Dividend yield (trailing twelve months) | 0.69% | | Beta | 1.10 | | Cost of capital (WACC) | 9.47% | | Business classification | Profitable Growth (Moderate growth (~16% recent), High profitability (40% net margin), Moderately volatile earnings) | ## On the stock lists | List | Place | Figure | Page | | --- | ---: | ---: | --- | | Largest companies | #4 | $3.9T | https://sweetvaluelab.com/lists/largest-companies | ## Dividends | Figure | Value | | --- | ---: | | Trailing dividend yield | 0.69% | | Dividends per share, last 12 months | $3.64 | | Dividends / free cash flow (fiscal 2026) | 39.5% | | Raised | 20 years in a row | | Growth over 5 years | 10.2% a year | | Latest payment | $0.91, ex-date Aug 20, 2026, paid Sep 10, 2026 | | Year of payments | Dividends per share | | --- | ---: | | To Aug 18, 2021 | $2.24 | | To Aug 17, 2022 | $2.48 | | To Aug 16, 2023 | $2.72 | | To Aug 15, 2024 | $3.00 | | To Aug 21, 2025 | $3.32 | | Trailing twelve months (to Aug 20, 2026) | $3.64 | ## Valuation models Each model's value per share and the role the engine gave it for this business. The headline above is one model's value; every other model is listed with its own, and each has a page of its own under the valuation. Computed Oct 17, 2026. | Model | Role | Value per share | Low | High | | --- | --- | ---: | ---: | ---: | | DCF · Perpetuity growth · 5y | primary | $479.20 | $321.85 | $953.98 | | DCF · Perpetuity growth · 10y | cross check | $738.17 | $488.87 | $1,487.81 | | DCF · EBITDA exit · 5y | cross check | $739.06 | $507.84 | $1,011.38 | | DCF · EBITDA exit · 10y | cross check | $1,038.37 | $687.49 | $1,508.43 | | P/E · peers | cross check | $362.65 | $244.93 | $441.27 | | P/E · own history | cross check | $625.89 | $532.81 | $680.09 | | PEG | sanity check | $410.11 | $410.11 | $410.11 | | EV/EBITDA · peers | cross check | $370.97 | $292.58 | $486.39 | | EV/Revenue · peers | cross check | $185.68 | $86.22 | $261.97 | | Earnings power value | cross check | $114.78 | $98.73 | $136.87 | ## Insider activity (SEC Form 4) Past 90 days: 0 open-market buys ($0) and 9 open-market sales ($24.7M); 10b5-1 plan sales included. | Date | Insider | Relationship | Transaction | Shares | Value | | --- | --- | --- | --- | ---: | ---: | | Oct 15, 2026 | Coleman Amy | EVP, Chief Human Resources Off | Tax withholding | 31.944 | $17,048.2 | | Oct 13, 2026 | Hood Amy | EVP, Chief Financial Officer | Open-market sell (10b5-1 plan) | 991 | $541,589.8 | | Oct 13, 2026 | Hood Amy | EVP, Chief Financial Officer | Open-market sell (10b5-1 plan) | 2,927 | $1.6M | | Oct 13, 2026 | Hood Amy | EVP, Chief Financial Officer | Open-market sell (10b5-1 plan) | 3,387 | $1.8M | | Sep 15, 2026 | SMITH BRADFORD L | Vice Chair and President | Grant / award | 29,077 | $0 | ## Recent SEC filings | Filed | Form | What | Filing | | --- | --- | --- | --- | | Sep 2, 2026 | 8-K | 7.01 Regulation FD Disclosure; 9.01 Financial Statements and Exhibits | https://www.sec.gov/Archives/edgar/data/789019/000119312526380280/d291965d8k.htm | | Jul 29, 2026 | 10-K | Annual report | https://www.sec.gov/Archives/edgar/data/789019/000119312526323660/msft-20260630.htm | | Jul 29, 2026 | 8-K | 2.02 Results of Operations (Earnings); 9.01 Financial Statements and Exhibits | https://www.sec.gov/Archives/edgar/data/789019/000119312526323632/msft-20260729.htm | | Jun 5, 2026 | 8-K | 5.02 Departure/Election of Directors or Officers | https://www.sec.gov/Archives/edgar/data/789019/000119312526258667/d26760d8k.htm | | May 14, 2026 | 8-K | 5.02 Departure/Election of Directors or Officers; 9.01 Financial Statements and Exhibits | https://www.sec.gov/Archives/edgar/data/789019/000119312526224155/d125909d8k.htm | ## Superinvestors holding it (latest 13F) | Manager | Quarter | Shares | Value | | --- | --- | ---: | ---: | | Dodge & Cox | 2026-06-30 | 12,836,229 | $4.8B | | Ackman | 2026-06-30 | 6,206,730 | $2.3B | | AltaRock | 2026-06-30 | 2,334,482 | $870.8M | | Chase Coleman | 2026-06-30 | 2,266,913 | $845.6M | 39 tracked managers in all. ## About Microsoft Corporation is a prominent global technology firm that invents, markets, and provides ongoing assistance for a diverse range of software, digital services, computing devices, and comprehensive solutions. Its operations are organized into three primary divisions: Productivity and Business Processes, Intelligent Cloud, and More Personal Computing. The Productivity and Business Processes segment delivers crucial tools for both enterprises and individual users. This includes the extensive Office suite (comprising Exchange, SharePoint, Microsoft Teams, Office 365 Security and Compliance, Microsoft Viva, and Skype for Business), along with popular consumer offerings like Skype, Outlook.com, OneDrive, and LinkedIn. It also features Dynamics 365, a suite of integrated cloud and on-premises business applications tailored for organizations. The Intelligent Cloud division focuses on sophi… --- Source: https://sweetvaluelab.com/stocks/msft (SweetValueLab, free, no account). Prices and statements from Financial Modeling Prep; filings from SEC EDGAR. Research and educational data, not investment advice; nothing here is a recommendation to buy, sell or hold any security.