Prediction: This Will Be Microsoft’s Stock Price Next Year

Prediction: This Will Be Microsoft’s Stock Price Next Year

By Keithen Drury, The Motley Fool
Publication Date: 2026-04-09 07:55:00

Microsoft (NASDAQ: MSFT) has had a terrible start to 2026. It’s down more than 20% to start, but it’s also off more than 30% from its all-time high. That’s not a normal experience for Microsoft, as it has been down 30% or more from an all-time high only once in the past decade.

There has seldom been a better time to scoop up Microsoft shares, and I think its stock price will be much higher in 2027. How much higher? Let’s take a look.

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Image source: Getty Images.

If Microsoft was overvalued when its sell-off began, then this drop is warranted, and it isn’t the buying opportunity many investors have made it out to be. Since 2020, Microsoft has traded at an earnings valuation in the mid-30s.

MSFT PE Ratio Chart
MSFT PE Ratio data by YCharts

One thing to note…