MicrosoftCHIX:MSFD -0.18%85 EV-to-FCF is 38.46 as of Jun. 24, 2026, which is 19% above its 10-year median of 32.34. GuruFocus rates CHIX:MSFD with a GF Score™ of 85/100 and a GF Value™ of €491.76 (Significantly Undervalued). The stock has 2 warning signs investors should review. Among 1,585 Software companies, Microsoft ranks worse than 79.75% on this metric.
EV-to-FCF is calculated as enterprise value divided by its free cash flow. As of today, Microsoft's Enterprise Value is €2,412,398 Mil.
Microsoft's Free Cash Flow for the trailing twelve months (TTM) ended in Mar. 2026 was €62,725 Mil. Therefore, Microsoft's EV-to-FCF for today is 38.46.
The historical rank and industry rank for Microsoft's EV-to-FCF or its related term are showing as below:
CHIX:MSFd'
s EV-to-FCF Range Over the Past 10 Years
Min: 13.84 Med: 32.34 Max: 54.14
Current: 37.8
During the past 13 years, the highest EV-to-FCF of Microsoft was 54.14. The lowest was 13.84. And the median was 32.34.
CHIX:MSFd's EV-to-FCF is ranked worse than 79.75% of 1585
companies
in the Software industry
Industry Median: 14.36
vs CHIX:MSFd: 37.80
EV-to-FCF 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-FCF 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 €329.50.
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 €14.435.
* 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. Free Cash Flow is an important financial metric because it represents the actual amount of cash at a company's disposal. Companies with a low EV-to-FCF ratio, combined with a strong balance sheet are generally considered as undervalued.
Microsoft EV-to-FCF Related Terms
Microsoft EV-to-FCF Historical Data
* Premium members only.
The historical data trend for Microsoft's EV-to-FCF 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.
CHIX:MSFD vs ORCL, PLTR, PANW: EV-to-FCF Comparison
For the Software - Infrastructure subindustry, Microsoft's EV-to-FCF, along with its competitors' market caps and EV-to-FCF 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-FCF vs Software Industry
For the Software industry and Technology sector, Microsoft's EV-to-FCF distribution charts can be found below:
* The bar in red indicates where Microsoft's EV-to-FCF falls into.
Microsoft's current Enterprise Value is €2,412,398 Mil.
Microsoft's Free Cash Flow 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 €62,725 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 (CHIX:MSFD) has a EV-to-FCF of 38.46 as of Jun. 24, 2026. EV to FCF ratio is the company's enterprise value divided by free cash flow. View historical data on Microsoft and its competitors. This is 19% above median its historical median of 32.34. Over the past decade, Microsoft's EV-to-FCF has ranged from 13.84 to 54.14. According to the industry distribution chart, Microsoft ranks #1264 out of 1585 companies in the Software industry, placing it in the top 79.7%.
Is Microsoft's EV-to-FCF too high?
Microsoft's current EV-to-FCF of 38.46 is 19% above median its 10-year median of 32.34. Over the past 10 years, this metric has ranged from a low of 13.84 to a high of 54.14. The Software industry median EV-to-FCF is 14.36. Microsoft's value of 38.46 is 167.8% above this industry median. Based on the distribution chart, Microsoft ranks #1264 out of 1585 companies in the Software industry, which is in the bottom quartile relative to peers. Overall, Microsoft has a GF Score™ of 85/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Microsoft's EV-to-FCF compare to ORCL and PLTR?
According to the Software industry distribution chart, Microsoft ranks #1264 out of 1585 companies for EV-to-FCF. This places Microsoft in the lower half of its industry. The industry median EV-to-FCF is 14.36. Microsoft's value of 38.46 is 167.8% above this benchmark. Historically, Microsoft's own EV-to-FCF has ranged from 13.84 to 54.14 over the past decade. While the company's 10-year median is 32.34 vs. the industry median of 14.36, 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-FCF for a Software company?
The median EV-to-FCF among Software companies is 14.36, based on 1,585 companies in the industry. Companies in the top quartile (top 25%) have a EV-to-FCF significantly above this median, while those in the bottom quartile fall well below. However, EV-to-FCF should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Microsoft's current EV-to-FCF of 38.46 is 167.8% 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-FCF mean?
A high EV-to-FCF can signal that a stock is expensive relative to its fundamentals. EV to FCF ratio is the company's enterprise value divided by free cash flow. View historical data on Microsoft and its competitors. For the Software industry, the median EV-to-FCF is 14.36 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Microsoft's current EV-to-FCF is 38.46, which is 19% above median its own 10-year median of 32.34. 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 (CHIX:MSFD) is currently considered Significantly Undervalued. The stock's GF Value™ is €491.76, compared to a current price of €329.50 — trading 33% below its estimated fair value. The current EV-to-FCF is 38.46, which is 19% above median its 10-year median of 32.34 and 167.8% above the Software industry median of 14.36. Microsoft's overall GF Score™ is 85/100 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-FCF calculated?
EV-to-FCF is calculated from a company's financial statements. For Microsoft (CHIX:MSFD), the current EV-to-FCF is 38.46 as of Jun. 24, 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 (CHIX:MSFD) Overvalued in 2026?
Based on GuruFocus' analysis, Microsoft stock appears to be undervalued.
The current stock price of €329.50 is trading 33% below its estimated GF Value™ of €491.76.
GuruFocus considers Microsoft to be Significantly Undervalued.
Key valuation signals for CHIX:MSFD:
EV-to-FCF: 38.46 (19% above median its 10-year median of 32.34)
GF Value™: €491.76 vs. price of €329.50 (33% below fair value)
Industry Position: 167.8% above the Software median (#1264 of 1585)
No single metric tells the full story. See the CHIX:MSFD 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).
85GF Score
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