Is MicroStrategy, Inc. overvalued or undervalued?

As of 17 October 2025, the valuation grade for MicroStrategy, Inc. moved from fair to attractive, indicating a shift in perception towards its value. The company appears to be undervalued, supported by a P/E ratio of 47, a Price to Book Value of 3.05, and an EV to Capital Employed ratio of 2.65. In comparison, its peer Spotify Technology SA has a significantly higher P/E ratio of 92.22, suggesting that MicroStrategy may offer a more favorable valuation relative to its industry.
Despite recent stock performance showing a decline of 4.90% over the past week compared to a 1.70% gain in the S&P 500, MicroStrategy has outperformed the index over longer periods, with a remarkable 1,210.86% return over three years versus 81.19% for the S&P 500. This indicates strong potential for future growth, reinforcing the view that the stock is currently undervalued.