How Much Upside Is Left In Microsoft Stock?

Microsoft (MSFT) shares returned 37% over the past three months, against 2.6% for the S&P 500. Even so, Microsoft’s P/E, the price divided by a year of profit, is 28.3. That is below 31.8, the stock’s average at the last twelve quarter-ends, leaving out readings above 100. A run that big makes buyers wary, but the shares cost less per dollar of profit than usual. So how much upside is left in Microsoft stock at today’s price?

Microsoft Stock Could Have About 48% Upside Left

On the assumptions below, Microsoft stock would be worth about $753 a share in three years. That is 48% above today’s price of $508.96. Spread over three years, the gain works out to about 14% a year. The scenario is arithmetic on the company’s own numbers, not a forecast.

In this scenario, revenue grows 15.1% a year, a little below the 17.8% of the twelve months to fiscal Q4 2026. The table below sets today’s figures beside the scenario’s figures…