Is Microsoft Corp. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Microsoft Corp. has moved from fair to very attractive. The company appears to be undervalued based on its current metrics. Key ratios include a P/E ratio of 36, an EV to EBITDA of 22.89, and a PEG ratio of 2.90. Comparatively, Oracle Corp. is considered expensive with a P/E of 51.69, while Salesforce, Inc. is attractive with a P/E of 33.28.
In terms of performance, Microsoft has outperformed the S&P 500 over the year with a return of 23.24% compared to the index's 14.08%, reinforcing the notion that the stock is undervalued relative to its growth potential.