Is Microsoft Stock Cheap?

Sep. 22, 2022 4:50 PM ETMicrosoft Corporation (MSFT)31 Comments
Cavenagh Research profile picture
Cavenagh Research


  • In this article I will present three ways how investors could value Microsoft.
  • My analysis finds that Microsoft stock is a buying opportunity, no matter the valuation method.
  • The relative multiple comparison indicates a $427 target price.
  • The sum-of-the-parts valuation implies $297 as fair.
  • The residual earnings model calculates a $369 target.

Day 1 - Mobile World Congress 2022

David Ramos


Microsoft (NASDAQ:MSFT) is one of my favorite investments, and I intend to hold the company's stock -- like many Seeking Alpha readers -- until retirement

The thesis is simple: although MSFT stock has appreciated by more than

MSFT vs SPX since 2017

Seeking Alpha

MSFT valuation

Seeking Alpha

PEG ratios FAAMG

Analyst Consensus EPS; Author's Calculations

MSFT valuation

Analyst Consensus EPS; Author's Calculations

MSFT sensitivity table valuation

Analyst Consensus EPS; Author's Calculations

This article was written by

Cavenagh Research profile picture
5y experience as an investment analyst for a major BB-Bank. Currently working towards the CFA charter. Passion for risk-assets (Growth, Contrarian, Emerging Market) ex-colleague and close friend of Investor Express

Disclosure: I/we have a beneficial long position in the shares of MSFT either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Additional disclosure: not financial advise

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