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MSFTMICROSOFT CORP
Mega-Cap / Hyperscaler10-K · Filed 2025-07-30
Clarity Fair Value
$341.47
OVERVALUED (-16.5%)
Market Price
$408.96
16.5% Downside
$307$547$786$1.0K$1.3K202620282030203220342036Market $409
Fair Value PathMarket Price

Model BlendMODERATE agreement · 33% spread

DCF$451.86 · 35%
Comps$412.52 · 23%
Residual Income$259.72 · 18%
ROIC Fade$112.55 · 16%
EV/Rev$276.53 · 8%
Beta
Shares
7426M
1Y Target
$396.10
EPV Floor
$152.14

MSFT Valuation Summary

Based on Clarity's multi-model valuation engine, MICROSOFT CORP (MSFT) has an estimated fair value of $341.47 per share, compared to its current market price of $408.96. The stock is currently trading 16.5% above Clarity's fair value estimate, resulting in a verdict of OVERVALUED.

This valuation blends 5 independent models — including Discounted Cash Flow (DCF), Comparable Companies, Residual Income, and 2 more. The primary weight is given to the Discounted Cash Flow (DCF) model, with Bayesian triangulation used to reconcile the estimates into a single blended fair value. The 5 models show moderate agreement with a 33% spread between the highest and lowest estimates.

Monte Carlo simulation across 5,000 scenarios estimates a 25.9% probability that the stock is trading below its intrinsic value, with a median simulated value of $301.99.

Clarity's 1-year price target is $396.10, reflecting expected earnings growth and margin trajectory.

MICROSOFT CORP is classified under the Mega-Cap / Hyperscaler sector, and this valuation is based on 10-K · Filed 2025-07-30 filings sourced directly from SEC EDGAR. All models use trailing twelve month (TTM) financials where available, with sector-appropriate growth and discount rate assumptions.

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Updated Mar 8, 2026, 10:00 AM UTC · Powered by Clarity Valuation Engine · Methodology

MICROSOFT CORP (MSFT) Valuation Summary

Clarity's 6-model valuation engine estimates MICROSOFT CORP (MSFT) at $341.47 per share, compared to the current market price of $408.96. This represents a 16.5% downside from the current price. The verdict is OVERVALUED.

This valuation was generated from MICROSOFT CORP's 10-K · Filed 2025-07-30 filing, classified in the Mega-Cap / Hyperscaler sector with high confidence. Model agreement is MODERATE with a 33% spread across models.

Models used: DCF (scenario-weighted), Residual Income, Comparable Companies, EV/Revenue, ROIC Fade, and Dividend Discount Model. All data sourced from SEC EDGAR and validated against XBRL structured filings.