Is Microsoft stock overpriced? (2024)

Is Microsoft stock overpriced?

Not only is the company's business doing well, but the stock's valuation isn't exorbitantly high. Trading at 39 times earnings and 36 times forward earnings (analysts' average forecast for earnings per share over the next 12 months), shares definitely aren't cheap -- but they're arguably not overpriced.

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Is Microsoft stock price Overvalued?

As of 2024-02-19, Microsoft Corp's intrinsic value as calculated by the Discounted Earnings model is $292.58. It's currently trading at a price of $404.055. Therefore, the margin of safety based on the DCF model is -38.1%. The company is modestly overvalued.

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Is it worth it to buy Microsoft stock?

Plenty of growth potential -- with a premium valuation

From fiscal 2023 to fiscal 2026, analysts expect Microsoft's revenue to grow at a compound annual growth rate (CAGR) of 15% as its EPS rises at a CAGR of 17%.

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Is Microsoft fairly priced?

According to our valuation model, Microsoft seems to be fairly priced at around 8.3% below our intrinsic value, which means if you buy Microsoft today, you'd be paying a reasonable price for it.

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Is it too late to buy Microsoft stock?

Given the multiple ways Microsoft can profit from the AI revolution and other catalysts that could fuel its growth, I'd argue it's not too late to buy Microsoft. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors.

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Is it safe to invest in Microsoft stock?

With its 3-star rating, we believe Microsoft's stock is fairly valued compared with our long-term fair value estimate of $420 per share, which implies a fiscal 2024 enterprise value/sales multiple of 12 times, adjusted P/E multiple of 36 times, and a 1% free cash flow yield.

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What will Microsoft stock be worth in 10 years?

According to Various Analysts, Microsoft Stock the Price Per Share at $420 by the End of 2024, $480 in 2025, $530 in 2026, $530 — $580 in 2027, $580 — $630 in 2028, $680 in 2029, $730 in 2030, $3,000 or Even $5,000 in 2035, $10,000 in 2040, $50,000 or Even $100,000 in 2050, $50k to $100k+ in 2060, According to ...

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What if you invested $1,000 in Microsoft 10 years ago?

If you had put $1,000 in Microsoft five years ago, your investment would have more than tripled in value to $3,408 as of Nov. 9. If you had invested $1,000 in Microsoft 10 years ago, it would have soared in value by more than 854% to $11,400 as of Nov.

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What if you invested $1,000 in Microsoft 20 years ago?

The bottom line on Microsoft stock

Have a look at the above chart and you'll see that if you put a grand into MSFT stock two decades ago, today it would be worth more than $24,000. The same amount invested in the S&P 500 20 years ago would theoretically be worth almost $6,500 today.

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What if you invested $1 000 in Microsoft 20 years ago?

Currently, Microsoft has a market capitalization of $3.07 trillion. Buying $1000 In MSFT: If an investor had bought $1000 of MSFT stock 20 years ago, it would be worth $16,279.07 today based on a price of $413.00 for MSFT at the time of writing.

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Is Microsoft a strong buy now?

Based on analyst ratings, Microsoft's 12-month average price target is $470.02. Microsoft has 13.12% upside potential, based on the analysts' average price target. Microsoft has a conensus rating of Strong Buy which is based on 32 buy ratings, 1 hold ratings and 1 sell ratings.

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Is AMZN a buy right now?

Amazon's analyst rating consensus is a Strong Buy. This is based on the ratings of 41 Wall Streets Analysts.

Is Microsoft stock overpriced? (2024)
Is Microsoft a good stock to buy 2024?

The user base for Microsoft's (MSFT) search engine is growing rapidly due to the company's deployment of generative artificial intelligence (AI). Furthermore, a prominent analyst observed Microsoft's “defensive qualities” among mega-cap tech names.

Will MSFT go up in 2024?

Microsoft (MSFT) stock has climbed 55% year to date in 2023, and one Wall Street analyst sees it running higher in 2024, thanks to its "unique AI position." Oppenheimer analyst Timothy Horan on Tuesday reiterated his outperform rating on Microsoft stock with a price target of 410.

Where will MSFT stock be in 5 years?

Assuming Microsoft achieves the 12.8 percent earnings growth expected by analysts over the next five years, the stock's EPS would reach roughly $17.70. If the P/E ratio remains at roughly 30 times, the stock would trade at around $530 within five years.

Is Apple stock Overvalued?

With its 2-star rating, we believe Apple's stock is overvalued compared with our long-term fair value estimate of $160 per share. Our valuation implies a fiscal 2024 adjusted price/earnings multiple of 25 times, a fiscal 2024 enterprise value/sales multiple of 7 times, and a fiscal 2024 free cash flow yield of 4%.

How much would $1000 invested in Microsoft in 1986 be worth today?

In dollar terms, that $1,000 investment in 1986 would be worth a whopping $3.23 million today.

Is Apple or Microsoft better to invest in?

Apple Inc. Microsoft Corp. Following a stellar 2023 for both stocks, expectations for share price increases over the next year are modest. But the analysts favor Microsoft by a large margin.

Is Microsoft a better stock than Apple?

Currently, Wall Street is more positive on Microsoft. The company has no "sell" rating and nearly 90% of the brokerages covering the company recommend buying the stock. Apple has two "sell" ratings and only two-thirds of the analysts covering the company rate it a "buy".

Can Nvidia hit $1000?

That would be a 67% jump from current levels. So, based on Nvidia's current stock price of around $660 and the potential upside that it could deliver on the back of its impressive growth, its shares could be worth $1,000 apiece in the next couple of years.

What is the highest Microsoft stock price ever?

The all-time high Microsoft stock closing price was 419.78 on February 09, 2024. The Microsoft 52-week high stock price is 420.82, which is 1.4% above the current share price. The Microsoft 52-week low stock price is 245.73, which is 40.8% below the current share price.

Will MSFT reach $1,000?

The prediction for Microsoft Corporation (MSFT) is that the value will increase steadily over the next ten years. The analyzed data by our experts suggests that the price per share for Microsoft will rise to $355 by the end of 2023, $400 in 2024, $452 in 2025, $645 in 2026, $710 in 2027, $795 in 2028, and $820 in 2029.

How much Microsoft stock does Bill Gates own?

If he had preserved these shares, they would be valued at over $500 billion today. However, Gates's approach to wealth has been markedly different. Today, he holds a 1.38% stake in Microsoft, amounting to 103 million shares.

What if I bought 100 shares of Microsoft in 1986?

On 13 March 1986, Microsoft went public at $21 a share. 100 shares would be worth $2100. Microsoft has since had 9 splits (Microsoft Stock Split History ) for a total of 288x. Split adjusted IPO price would be 21/288 = $0.073.

How much of Microsoft does Bill Gates own?

The largest individual shareholders include Microsoft's former CEO, Steve Ballmer, with a 4.48% stake in the company, and the founder, Bill Gates, who owns 0.53% of all MSFT shares.

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