Is MicroStrategy, Inc. overvalued or undervalued?

As of 17 October 2025, the valuation grade for MicroStrategy, Inc. moved from fair to attractive, indicating a more favorable assessment of the company's value. The company appears to be undervalued, particularly when considering its P/E ratio of 47, which is lower than the peer Spotify Technology SA at 92.22, and an EV to Sales ratio of 240.51, which is significantly higher than the industry average. Additionally, the ROE stands at 6.55%, further supporting the notion of undervaluation compared to its peers.
In terms of performance, MicroStrategy has shown impressive returns over the long term, with a 3-year return of 1210.86% compared to the S&P 500's 81.19%, and a staggering 5-year return of 1659.99% against the S&P 500's 91.29%. However, recent short-term performance has been weaker, with a 1-month return of -12.08% compared to the S&P 500's 0.96%. Overall, the valuation metrics and long-term performance suggest that MicroStrategy, Inc. is currently undervalued.