By Simply Wall St
Publication Date: 2026-01-05 03:08:00
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If you have ever wondered whether Microsoft is still a buy at today’s levels, you are not alone. This article is designed to cut through the noise and focus on what the stock is actually worth.
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Despite a modest pullback of around 3.0% over the last week and a roughly flat start to the year, long term holders have still seen the share price climb about 12.5% over the last year and more than 115.3% over three years.
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Recent headlines have focused on Microsoft’s continued push into artificial intelligence partnerships and cloud infrastructure, alongside regulatory scrutiny around big tech dominance globally. Together, these themes help explain why the market has been quick to reprice the stock whenever sentiment on growth or regulation shifts.
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Right now, Microsoft scores a 4 out of 6 on our valuation checks. This suggests it may be undervalued on several fronts. We will walk through what that means using different valuation approaches, before ending with a more intuitive way…