MicrosoftXSWX:MSFT 95 EV-to-EBIT is 18.31 as of Jul. 10, 2026, which is 23% below its 10-year median of 23.69. GuruFocus rates XSWX:MSFT with a GF Score™ of 95/100 and a GF Value™ of CHF445.45 (Significantly Undervalued). The stock has 2 warning signs investors should review. Among 1,760 Software companies, Microsoft ranks worse than 59.32% on this metric.
EV-to-EBIT is calculated as Enterprise Value divided by its EBIT. As of today, Microsoft's Enterprise Value is CHF2,297,806 Mil.
Microsoft's EBIT for the trailing twelve months (TTM) ended in Mar. 2026 was CHF125,505 Mil. Therefore, Microsoft's EV-to-EBIT for today is 18.31.
The historical rank and industry rank for Microsoft's EV-to-EBIT or its related term are showing as below:
XSWX:MSFT'
s EV-to-EBIT Range Over the Past 10 Years
Min: 13.62 Med: 23.69 Max: 32.51
Current: 18.04
During the past 13 years, the highest EV-to-EBIT of Microsoft was 32.51. The lowest was 13.62. And the median was 23.69.
XSWX:MSFT's EV-to-EBIT is ranked worse than 59.32% of 1760
companies
in the Software industry
Industry Median: 14.18
vs XSWX:MSFT: 18.04
This is a more accurate valuation of companies' operation because it considers the debt and cash on its balance sheet, and non-operating items such as interest payment, tax, and one-time items are not included in the Operating Income.
Microsoft's Enterprise Value for the quarter that ended in Mar. 2026 was CHF2,140,047 Mil.
Microsoft's EBIT for the trailing twelve months (TTM) ended in Mar. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was CHF125,505 Mil.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Microsoft EV-to-EBIT Related Terms
Microsoft EV-to-EBIT Historical Data
* Premium members only.
The historical data trend for Microsoft's EV-to-EBIT can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
XSWX:MSFT vs ORCL, PLTR, PANW: EV-to-EBIT Comparison
For the Software - Infrastructure subindustry, Microsoft's EV-to-EBIT, along with its competitors' market caps and EV-to-EBIT data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Microsoft EV-to-EBIT vs Software Industry
For the Software industry and Technology sector, Microsoft's EV-to-EBIT distribution charts can be found below:
* The bar in red indicates where Microsoft's EV-to-EBIT falls into.
Microsoft's current Enterprise Value is CHF2,297,806 Mil.
Microsoft's EBIT for the trailing twelve months (TTM) ended in Mar. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was CHF125,505 Mil.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Microsoft (XSWX:MSFT) has a EV-to-EBIT of 18.31 as of Jul. 10, 2026. EV to EBIT ratio is the inverse of Joel Greenblatt's earnings yield definition. View historical data on Microsoft and its competitors. This is 23% below median its historical median of 23.69. Over the past decade, Microsoft's EV-to-EBIT has ranged from 13.62 to 32.51. According to the industry distribution chart, Microsoft ranks #1044 out of 1760 companies in the Software industry, placing it in the top 59.3%.
Is Microsoft's EV-to-EBIT too high?
Microsoft's current EV-to-EBIT of 18.31 is 23% below median its 10-year median of 23.69. Over the past 10 years, this metric has ranged from a low of 13.62 to a high of 32.51. The Software industry median EV-to-EBIT is 14.18. Microsoft's value of 18.31 is 29.1% above this industry median. Based on the distribution chart, Microsoft ranks #1044 out of 1760 companies in the Software industry, which is below the industry midpoint. Overall, Microsoft has a GF Score™ of 95/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Microsoft's EV-to-EBIT compare to ORCL and PLTR?
According to the Software industry distribution chart, Microsoft ranks #1044 out of 1760 companies for EV-to-EBIT. This places Microsoft in the lower half of its industry. The industry median EV-to-EBIT is 14.18. Microsoft's value of 18.31 is 29.1% above this benchmark. Historically, Microsoft's own EV-to-EBIT has ranged from 13.62 to 32.51 over the past decade. While the company's 10-year median is 23.69 vs. the industry median of 14.18, Microsoft has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good EV-to-EBIT for a Software company?
The median EV-to-EBIT among Software companies is 14.18, based on 1,760 companies in the industry. Companies in the top quartile (top 25%) have a EV-to-EBIT significantly above this median, while those in the bottom quartile fall well below. However, EV-to-EBIT should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Microsoft's current EV-to-EBIT of 18.31 is 29.1% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high EV-to-EBIT mean?
A high EV-to-EBIT can signal that a stock is expensive relative to its fundamentals. EV to EBIT ratio is the inverse of Joel Greenblatt's earnings yield definition. View historical data on Microsoft and its competitors. For the Software industry, the median EV-to-EBIT is 14.18 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Microsoft's current EV-to-EBIT is 18.31, which is 23% below median its own 10-year median of 23.69. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Microsoft stock overvalued right now?
Based on GuruFocus' analysis, Microsoft (XSWX:MSFT) is currently considered Significantly Undervalued. The stock's GF Value™ is CHF445.45, compared to a current price of CHF308.30 — trading 30.8% below its estimated fair value. The current EV-to-EBIT is 18.31, which is 23% below median its 10-year median of 23.69 and 29.1% above the Software industry median of 14.18. Microsoft's overall GF Score™ is 95/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is EV-to-EBIT calculated?
EV-to-EBIT is calculated from a company's financial statements. For Microsoft (XSWX:MSFT), the current EV-to-EBIT is 18.31 as of Jul. 10, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Microsoft (XSWX:MSFT) Overvalued in 2026?
Based on GuruFocus' analysis, Microsoft stock appears to be undervalued.
The current stock price of CHF308.30 is trading 30.8% below its estimated GF Value™ of CHF445.45.
GuruFocus considers Microsoft to be Significantly Undervalued.
Key valuation signals for XSWX:MSFT:
EV-to-EBIT: 18.31 (23% below median its 10-year median of 23.69)
GF Value™: CHF445.45 vs. price of CHF308.30 (30.8% below fair value)
Industry Position: 29.1% above the Software median (#1044 of 1760)
No single metric tells the full story. See the XSWX:MSFT stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Microsoft develops and licenses consumer and enterprise software. It is known for its Windows operating systems and Office productivity suite. The company is organized into three equally sized broad segments: productivity and business processes (legacy Microsoft Office, cloud-based Office 365, Exchange, SharePoint, Skype, LinkedIn, Dynamics), intelligence cloud (infrastructure- and platform-as-a-service offerings Azure, Windows Server OS, SQL Server), and more personal computing (Windows Client, Xbox, Bing search, display advertising, and Surface laptops, tablets, and desktops).
95GF Score
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