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MicrosoftXSWX:MSFT 95 EV-to-OCF is 17.39 as of Jul. 16, 2026, which is 22% below its 10-year median of 22.40. GuruFocus rates XSWX:MSFT with a GF Score™ of 95/100 and a GF Value™ of CHF455.31 (Significantly Undervalued). The stock has 2 warning signs investors should review. Among 2,872 Software companies, Microsoft ranks worse than 74.55% on this metric.
EV-to-OCF is calculated as enterprise value divided by its cash flow from operations. As of today, Microsoft's Enterprise Value is CHF2,361,107 Mil.
Microsoft's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2026 was CHF135,796 Mil. Therefore, Microsoft's EV-to-OCF for today is 17.39.
The historical rank and industry rank for Microsoft's EV-to-OCF or its related term are showing as below:
XSWX:MSFT'
s EV-to-OCF Range Over the Past 10 Years
Min: 10.83 Med: 22.4 Max: 31.26
Current: 17.15
During the past 13 years, the highest EV-to-OCF of Microsoft was 31.26. The lowest was 10.83. And the median was 22.40.
XSWX:MSFT's EV-to-OCF is ranked worse than 74.55% of 2872
companies
in the Software industry
Industry Median: 6.77
vs XSWX:MSFT: 17.15
EV-to-OCF is a valuation multiple that allows analysts and investors to compare stocks, preferably in the same sector or industry. This important multiple is often used in conjunction with, or as an alternative to, the PE Ratio (TTM) to determine the fair market value of a company.
EV-to-OCF is a valuation multiple that allows analysts and investors to compare stocks, preferably in the same sector or industry. This important multiple is often used in conjunction with, or as an alternative to, the PE Ratio (TTM) to determine the fair market value of a company.
Microsoft's share price for today is CHF319.90.
Microsoft's Earnings per Share (Diluted) 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 CHF13.403.
* 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.
Enterprise Value is used because it is a more complete measure in reflecting how much an investor pays when buying a company. Cash Flow from Operations is an important financial metric because it represents the cash generated from operating activities at a company's disposal. Companies with a low EV-to-OCF ratio, combined with a strong balance sheet are generally considered as undervalued.
Microsoft EV-to-OCF Related Terms
Microsoft EV-to-OCF Historical Data
* Premium members only.
The historical data trend for Microsoft's EV-to-OCF 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-OCF Comparison
For the Software - Infrastructure subindustry, Microsoft's EV-to-OCF, along with its competitors' market caps and EV-to-OCF 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-OCF vs Software Industry
For the Software industry and Technology sector, Microsoft's EV-to-OCF distribution charts can be found below:
* The bar in red indicates where Microsoft's EV-to-OCF falls into.
Microsoft's current Enterprise Value is CHF2,361,107 Mil.
Microsoft's Cash Flow from Operations 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 CHF135,796 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-OCF of 17.39 as of Jul. 16, 2026. This is 22% below median its historical median of 22.40. Over the past decade, Microsoft's EV-to-OCF has ranged from 10.83 to 31.26. According to the industry distribution chart, Microsoft ranks #2141 out of 2872 companies in the Software industry, placing it in the top 74.5%.
Is Microsoft's EV-to-OCF too high?
Microsoft's current EV-to-OCF of 17.39 is 22% below median its 10-year median of 22.40. Over the past 10 years, this metric has ranged from a low of 10.83 to a high of 31.26. The Software industry median EV-to-OCF is 6.77. Microsoft's value of 17.39 is 156.9% above this industry median. Based on the distribution chart, Microsoft ranks #2141 out of 2872 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-OCF compare to ORCL and PLTR?
According to the Software industry distribution chart, Microsoft ranks #2141 out of 2872 companies for EV-to-OCF. This places Microsoft in the lower half of its industry. The industry median EV-to-OCF is 6.77. Microsoft's value of 17.39 is 156.9% above this benchmark. Historically, Microsoft's own EV-to-OCF has ranged from 10.83 to 31.26 over the past decade. While the company's 10-year median is 22.40 vs. the industry median of 6.77, 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-OCF for a Software company?
The median EV-to-OCF among Software companies is 6.77, based on 2,872 companies in the industry. Companies in the top quartile (top 25%) have a EV-to-OCF significantly above this median, while those in the bottom quartile fall well below. However, EV-to-OCF should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Microsoft's current EV-to-OCF of 17.39 is 156.9% 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-OCF mean?
A high EV-to-OCF can signal that a stock is expensive relative to its fundamentals. For the Software industry, the median EV-to-OCF is 6.77 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Microsoft's current EV-to-OCF is 17.39, which is 22% below median its own 10-year median of 22.40. 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 CHF455.31, compared to a current price of CHF319.90 — trading 29.7% below its estimated fair value. The current EV-to-OCF is 17.39, which is 22% below median its 10-year median of 22.40 and 156.9% above the Software industry median of 6.77. 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-OCF calculated?
EV-to-OCF is calculated from a company's financial statements. For Microsoft (XSWX:MSFT), the current EV-to-OCF is 17.39 as of Jul. 16, 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 CHF319.90 is trading 29.7% below its estimated GF Value™ of CHF455.31.
GuruFocus considers Microsoft to be Significantly Undervalued.
Key valuation signals for XSWX:MSFT:
EV-to-OCF: 17.39 (22% below median its 10-year median of 22.40)
GF Value™: CHF455.31 vs. price of CHF319.90 (29.7% below fair value)
Industry Position: 156.9% above the Software median (#2141 of 2872)
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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