Microsoft Corp. — Beer Score

Microsoft Corp. Stock Valuation Analysis — Beer Score Breakdown

Microsoft Corp.'s Beer Score of 44 means that, according to our DCF model, less than half of its current $420 stock price is supported by the company's existing fundamentals — revenue, earnings, free cash flow, and assets. The remaining 56% represents an estimated premium the market places on future growth expectations.

Investors buying at this level are betting that future earnings will grow fast enough to close the gap between price and our model estimated intrinsic value.

How Beer Score Is Calculated for MSFT

We pull Microsoft Corp.'s latest 10-K and 10-Q filings from SEC EDGAR, run a DCF analysis using a 9.5% WACC and 15% revenue growth rate over 5 years with 3% terminal growth, then compare the resulting model estimate ($185) against the current market price ($420). The Beer Score of 44 represents the ratio: $185 ÷ $420 = 44%. Model output varies with assumptions. Learn more about our methodology →

Important Information

Beer Score is an educational indicator, not investment advice. It measures the model-estimated gap between a stock's current market price and an estimated intrinsic value derived from public financial data. A low Beer Score does not mean "sell" and a high score does not mean "buy." Past Beer Score patterns do not predict future price movements. Model output varies with assumptions (WACC, growth rate, terminal growth, margins).

Prices shown are indicative reference prices for educational purposes only and are not sourced from an official exchange feed. Data sources include SEC EDGAR filings (10-K and 10-Q), indicative market price data, and proprietary DCF models. Scores update daily after market close. For the full ranking of all stocks, visit the Beer Score Heatmap or read Today's Foam Report.