Does Microsoft Deserve Its Decade-Low Multiple?

Does Microsoft Deserve Its Decade-Low Multiple?

By Rich Duprey
Publication Date: 2026-02-22 13:37:00

  • Microsoft (MSFT) stock fell 17% year-to-date and trades at a P/E ratio under 25. This matches 2015 valuation levels.

  • Microsoft’s Copilot adoption remains at 3.3% of 450M commercial seats. Large enterprise deals require discounts of 40% to 60%.

  • Copilot’s U.S. paid subscriber share dropped 39% from 18.8% in July to 11.5% in January.

  • A recent study identified one single habit that doubled Americans’ retirement savings and moved retirement from dream, to reality. Read more here.

Microsoft (NASDAQ:MSFT) has integrated artificial intelligence (AI) into its products more extensively than most of its peers, with tools like Copilot embedded across its software suite and its Azure AI infrastructure sold out in key regions.Bullish analyses often focus on its potential to monetize Copilot through paid upgrades, but current adoption remains low at 3.3% of its user base.

The market, though, appears skeptical, with Microsoft stock down 17% year-to-date and a drop of…