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Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
MicrosoftXSWX:MSFT -1.23%94 Equity-to-Asset is 0.60 as of Mar. 2026, which is 40% above its 10-year median of 0.43. GuruFocus rates XSWX:MSFT with a GF Score™ of 94/100 and a GF Value™ of CHF452.12 (Significantly Undervalued). The stock has 2 warning signs investors should review. Among 2,886 Software companies, Microsoft ranks better than 56.93% on this metric.
Equity to Asset ratio is calculated as total stockholders equity divided by total asset. Microsoft's Total Stockholders Equity for the quarter that ended in Mar. 2026 was CHF326,231 Mil. Microsoft's Total Assets for the quarter that ended in Mar. 2026 was CHF546,566 Mil.
Therefore, Microsoft's Equity to Asset Ratio for the quarter that ended in Mar. 2026 was 0.60.
The historical rank and industry rank for Microsoft's Equity-to-Asset or its related term are showing as below:
XSWX:MSFT'
s Equity-to-Asset Range Over the Past 10 Years
Min: 0.31 Med: 0.43 Max: 0.6
Current: 0.6
During the past 13 years, the highest Equity to Asset Ratio of Microsoft was 0.60. The lowest was 0.31. And the median was 0.43.
XSWX:MSFT's Equity-to-Asset is ranked better than 56.93% of 2886
companies
in the Software industry
Industry Median: 0.56
vs XSWX:MSFT: 0.60
Microsoft (XSWX:MSFT) Equity-to-Asset Explanation
Equity to Asset ratio can vary greatly across different industries, as they have different capital structure. A company with smaller Equity to Asset ratio (more leveraged) may have higher ROE % because of the leverage.
For banks, the required minimum Equity to Asset ratio by regulation is 5%. Some stronger banks may have Equity to Asset Ratio of more than 10%.
Microsoft Equity-to-Asset Related Terms
Microsoft Equity-to-Asset Historical Data
* Premium members only.
The historical data trend for Microsoft's Equity-to-Asset 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: Equity-to-Asset Comparison
For the Software - Infrastructure subindustry, Microsoft's Equity-to-Asset, along with its competitors' market caps and Equity-to-Asset 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 Equity-to-Asset vs Software Industry
For the Software industry and Technology sector, Microsoft's Equity-to-Asset distribution charts can be found below:
* The bar in red indicates where Microsoft's Equity-to-Asset falls into.
Equity to Asset ratio measures the ratios of the portion of the asset owned by shareholders out of the total asset. It indicates the leverage of the company, and the amount of debt the company uses in its operation.
Equity to Asset ratio is calculated by dividing total stockholders equity by total asset.
Microsoft's Equity to Asset Ratio for the fiscal year that ended in Jun. 2025 is calculated as
* 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 Equity-to-Asset of 0.60 as of Mar. 2026. Equity-to-asset ratio equals total company equity divided by total assets. It measures financial leverage. View historical data on Microsoft and its competitors. This is 40% above median its historical median of 0.43. Over the past decade, Microsoft's Equity-to-Asset has ranged from 0.31 to 0.60. According to the industry distribution chart, Microsoft ranks #1243 out of 2886 companies in the Software industry, placing it in the top 43.1%.
Is Microsoft's Equity-to-Asset too high?
Microsoft's current Equity-to-Asset of 0.60 is 40% above median its 10-year median of 0.43. Over the past 10 years, this metric has ranged from a low of 0.31 to a high of 0.60. The Software industry median Equity-to-Asset is 0.56. Microsoft's value of 0.60 is 7.1% above this industry median. Based on the distribution chart, Microsoft ranks #1243 out of 2886 companies in the Software industry, which is above the industry midpoint. Overall, Microsoft has a GF Score™ of 94/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Microsoft's Equity-to-Asset compare to ORCL and PLTR?
According to the Software industry distribution chart, Microsoft ranks #1243 out of 2886 companies for Equity-to-Asset. This puts Microsoft in the upper half of its industry. The industry median Equity-to-Asset is 0.56. Microsoft's value of 0.60 is 7.1% above this benchmark. Historically, Microsoft's own Equity-to-Asset has ranged from 0.31 to 0.60 over the past decade. While the company's 10-year median is 0.43 vs. the industry median of 0.56, 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 Equity-to-Asset for a Software company?
The median Equity-to-Asset among Software companies is 0.56, based on 2,886 companies in the industry. Companies in the top quartile (top 25%) have a Equity-to-Asset significantly above this median, while those in the bottom quartile fall well below. However, Equity-to-Asset should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Microsoft's current Equity-to-Asset of 0.60 is 7.1% 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 Equity-to-Asset mean?
A high Equity-to-Asset can signal that a stock is expensive relative to its fundamentals. Equity-to-asset ratio equals total company equity divided by total assets. It measures financial leverage. View historical data on Microsoft and its competitors. For the Software industry, the median Equity-to-Asset is 0.56 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Microsoft's current Equity-to-Asset is 0.60, which is 40% above median its own 10-year median of 0.43. 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 CHF452.12, compared to a current price of CHF316.20 — trading 30.1% below its estimated fair value. The current Equity-to-Asset is 0.60, which is 40% above median its 10-year median of 0.43 and 7.1% above the Software industry median of 0.56. Microsoft's overall GF Score™ is 94/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Equity-to-Asset calculated?
Equity-to-Asset is calculated from a company's financial statements. For Microsoft (XSWX:MSFT), the current Equity-to-Asset is 0.60 as of Mar. 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 CHF316.20 is trading 30.1% below its estimated GF Value™ of CHF452.12.
GuruFocus considers Microsoft to be Significantly Undervalued.
Key valuation signals for XSWX:MSFT:
Equity-to-Asset: 0.60 (40% above median its 10-year median of 0.43)
GF Value™: CHF452.12 vs. price of CHF316.20 (30.1% below fair value)
Industry Position: 7.1% above the Software median (#1243 of 2886)
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).
94GF Score
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