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Microsoft Corporation (MSFT) Valuation & Moats

Industry: N/A | Current Spot Price: $412.67

Quality of Company (QOC)

10.0 / 10

Moats, margins, and financial health stress-test index.

Value Trap Score

11.0 / 100

Risk level of value trap traps, structural declines, or debt strain.

Average Model Upside

-43.6%

Consensus fair value margin of safety across all active models.

13 Quantitative Valuation Models Targets

Valuation Model Variant Price Target Upside / Downside% Model Confidence%
Earnings Power Value $140.41 -65.98% 75.9%
Bayesian DCF $188.43 -54.34% 68.0%
Markov DDM $66.81 -83.81% 59.5%
Dynamic Net Asset Value $12.83 -96.96% 55.3%
First Chicago $543.46 31.69% 59.5%
EROIC Spread Model $105.43 -74.45% 63.8%
Machine Learning RIV $298.76 -27.60% 47.0%
Regime Cross model $258.37 -37.39% 46.8%
Sentiment SOTP $305.54 -25.96% 46.8%
CUCE Ensemble Model $209.53 -49.23% 15.1%
FTNN Topology Model $380.98 -7.68% 6.6%
RCMH-DCF Variant $99.81 -75.81% 55.3%

Market Search Intent Q&A

Is Microsoft Corporation (MSFT) worth buying in 2026?

Determining if Microsoft Corporation (MSFT) is worth buying in 2026 requires contrasting its current market spot price of $412.67 with our fundamental intrinsic value targets. Our quantitative models suggest that the consensus fair value upside for MSFT sits at -43.6% across active valuation models. If you prioritize conservative baseline asset capitalizations, the zero-growth Earnings Power Value (EPV) floor of $140.41 represents a strong baseline safety net. On the other hand, the 10,000-simulation Bayesian DCF target of $188.43 reflects the fair value accounting for margin progression and long-term cash flow compound potential.

Is MSFT currently undervalued or a value trap?

With a Quality of Company (QOC) score of 10.0/10 and a Value Trap Score of 11.0/100, MSFT's financial risk metrics provide deep structural insights. A Value Trap Score of 11.0/100 suggests that the company is currently safely insulated from immediate financial distress, operational structural decline, or a permanent loss of capital, debt distress, or structural operational decline. Meanwhile, the durable moat score (QOC) of 10.0/10 indicates the level of physical, structural, or brand competitive advantage the company retains. At $412.67, the margin of safety should be carefully compared to these fundamental indicators.

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