Added to YB: 2026-04-14
Pitch date: 2026-04-11
MSFT [neutral]
Microsoft Corporation
+2.88%
current return
Author Info
HatedMoats identifies hated moats. I buy companies when the market panics. Contrarian investor focused on quality, value & long-term growth. Sign up for the newsletter.
Company Info
Microsoft Corporation develops and supports software, services, devices, and solutions worldwide. The Productivity and Business Processes segment offers Microsoft 365 commercial, enterprise mobility + security, windows commercial, power BI, exchange, sharepoint, Microsoft teams, security and compliance, and copilot; Microsoft 365 commercial products, such as Windows commercial on-premises and office licensed services; Microsoft 365 consumer products and cloud services, including Microsoft 365 consumer subscriptions, office licensed on-premises, and other consumer services; LinkedIn; dynamics products and cloud services, such as dynamics 365, cloud-based applications, and on-premises ERP and CRM applications.
Market Cap
$2.8T
Pitch Price
$373.61
Price Target
578.00 (+56%)
Dividend
0.98%
EV/EBITDA
14.81
P/E
23.21
EV/Sales
9.13
Sector
Software
Category
value
Microsoft: DCF Valuation
MSFT (overview): DCF model values shares at $422 (13.8% upside); 12.2% margin of safety = fairly valued w/ undervalued tilt. FY27 rev +15%, EBIT margin 46%→48% by Y10, WACC 8.9%, 3% terminal growth. Bear $310 (-16%), bull $578 (+56%). Heavy AI capex (25%→10% of rev) pressures near-term margins despite $625B RPO (45% OpenAI). Undervalued at <$358.
Read full article (9 min)