By Simply Wall St
Publication Date: 2025-11-22 00:21:00
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Wondering if Microsoft’s current share price is a golden opportunity or just the status quo? You are not alone, with many investors eyeing whether it’s undervalued or trading at a premium.
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Recently, Microsoft’s stock has pulled back, with a drop of 7.4% over the past week and 9.3% in the last month, but it’s still up 12.8% year-to-date and 14.1% over the last year.
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This recent dip comes as investors digest a flurry of announcements, including continued investment in AI, major partnerships like those with OpenAI, and broader tech market volatility. The combination of aggressive innovation and shifting market sentiment has given both optimists and skeptics something to talk about.
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Based on six key valuation checks, Microsoft scores 5 out of 6 for being undervalued. This strong showing sets the stage for a deep dive into standard valuation approaches and a look at an even better way to understand what Microsoft’s stock is truly worth by the end of this article.
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