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Microsoft (MSFT, Systems Software) Stock Valuation & Fair Value Trading above its usual valuation

Microsoft (MSFT, Systems Software) trades at a blended P/E of 28.9, about 32% above its historical normal valuation, with a forward growth estimate of 18.7% and a PEG of 1.55. Analysts' one-year estimates have been hit 36% of the time. Priced at its historical normal P/E of 22.0 on the same blended earnings, the 2026-10-02 close of $517.53 corresponds to about $393 a share. This is a valuation reference, not a price target.

Blended P/E
28.9
Normal P/E
22.0
PEG
1.55
Fwd growth
18.7%
Div yield
0.8%
RSI (14)
61.9
Neutral
Technical context
  • Price $522.61 at the 2026-10-08 close, 2.8% above the 20-day average ($508.13) and 4.8% above the 50-day ($498.49).
  • RSI (14) at 61.9.
  • 52-week range $352.17 to $537.65: the price is 2.8% below the high and 48.4% above the low.

The Street vs SeerForecast

Wall Street's mean price target for MSFT is $578.82 across 53 analysts, 10.8% above the current price. The average analyst rating is Strong Buy. Our SeerForecast read of the same stock, formed without analyst targets: trading above its usual valuation. When the two disagree, start your digging there.

Valuation flags

Verdict history

tickerseer's rating has not changed since 2026-06-03, but its reason has: it read weak on forward returns then and reads trading above its usual valuation now.

Blended P/E and rating by weekBlended P/E moved from 25.9 to 28.9 between 2026-06-03 and 2026-10-02, against a normal P/E of 22.0, with 2 rating changes over 37 recorded weeks.2026-06-03: P/E 25.9, Weak on forward returns, recalculated for the week of 2026-06-032026-06-10: P/E 25.2, Weak on forward returns, recalculated for the week of 2026-06-102026-06-12: P/E 25.2, Weak on forward returns, recalculated for the week of 2026-06-142026-06-16: P/E 25.2, Weak on forward returns, recalculated for the week of 2026-06-162026-06-18: P/E 25.2, Weak on forward returns, recalculated for the week of 2026-06-212026-07-02: P/E 22.9, Mixed on our tests, recalculated for the week of 2026-07-022026-07-06: P/E 23.3, Mixed on our tests, recalculated for the week of 2026-07-062026-07-09: P/E 23.3, Mixed on our tests, recalculated for the week of 2026-07-092026-07-10: P/E 22.9, Mixed on our tests, recalculated for the week of 2026-07-122026-07-13: P/E 22.9, Mixed on our tests, recalculated for the week of 2026-07-132026-07-14: P/E 22.9, Mixed on our tests, recalculated for the week of 2026-07-142026-07-20: P/E 23.3, Mixed on our tests, recalculated for the week of 2026-07-202026-07-22: P/E 23.3, Mixed on our tests, recalculated for the week of 2026-07-222026-07-24: P/E 22.4, Mixed on our tests, recalculated for the week of 2026-07-252026-07-27: P/E 22.4, Mixed on our tests, recalculated for the week of 2026-07-272026-07-31: P/E 25.8, Mixed on our tests, recalculated for the week of 2026-07-312026-07-31: P/E 26.6, Trading above its usual valuation, recorded live 2026-08-032026-08-07: P/E 28.6, Trading above its usual valuation, recalculated for the week of 2026-08-072026-08-07: P/E 28.5, Trading above its usual valuation, recorded live 2026-08-102026-08-14: P/E 28.3, Trading above its usual valuation, recalculated for the week of 2026-08-142026-08-14: P/E 28.2, Trading above its usual valuation, recorded live 2026-08-172026-08-21: P/E 27.3, Trading above its usual valuation, recalculated for the week of 2026-08-212026-08-21: P/E 27.4, Trading above its usual valuation, recorded live 2026-08-242026-08-27: P/E 27.4, Trading above its usual valuation, recalculated for the week of 2026-08-272026-08-28: P/E 28.6, Trading above its usual valuation, recalculated for the week of 2026-08-282026-08-28: P/E 29.1, Trading above its usual valuation, recalculated for the week of 2026-08-302026-08-28: P/E 29.1, Trading above its usual valuation, recorded live 2026-08-312026-09-04: P/E 28.2, Trading above its usual valuation, recalculated for the week of 2026-09-052026-09-04: P/E 28.2, Trading above its usual valuation, recorded live 2026-09-072026-09-11: P/E 27.9, Trading above its usual valuation, recalculated for the week of 2026-09-122026-09-11: P/E 27.9, Trading above its usual valuation, recorded live 2026-09-142026-09-18: P/E 27.8, Trading above its usual valuation, recalculated for the week of 2026-09-192026-09-18: P/E 27.8, Trading above its usual valuation, recorded live 2026-09-212026-09-25: P/E 28.9, Trading above its usual valuation, recalculated for the week of 2026-09-262026-09-25: P/E 28.9, Trading above its usual valuation, recorded live 2026-09-282026-10-02: P/E 28.9, Trading above its usual valuation, recalculated for the week of 2026-10-032026-10-02: P/E 28.9, Trading above its usual valuation, recorded live 2026-10-0522.024.026.028.0Jun 3Jul 3Aug 2Sep 2Oct 2Normal P/E 22.0
Mixed on our testsWeak on forward returnsTrading above its usual valuation

Not every point was recorded live. Points marked recalculated apply today's valuation rules to the metrics tickerseer archived that week.

Selected weeks: the first, the latest, every week the rating moved, and the cheapest and dearest.

WeekBlended P/EPremium to normal P/ERating
2026-06-03P/E 25.9+18%Weak on forward returns (recalculated)
2026-07-02P/E 22.9+4%Mixed on our tests (recalculated)
2026-07-25P/E 22.4+2%Mixed on our tests (recalculated)
2026-08-03P/E 26.6+21%Trading above its usual valuation
2026-08-30P/E 29.1+32%Trading above its usual valuation (recalculated)
2026-10-05P/E 28.9+32%Trading above its usual valuation ← now
Show all 37 weeks
WeekBlended P/EPremium to normal P/ERating
2026-06-03P/E 25.9+18%Weak on forward returns (recalculated)
2026-06-10P/E 25.2+14%Weak on forward returns (recalculated)
2026-06-14P/E 25.2+14%Weak on forward returns (recalculated)
2026-06-16P/E 25.2+14%Weak on forward returns (recalculated)
2026-06-21P/E 25.2+14%Weak on forward returns (recalculated)
2026-07-02P/E 22.9+4%Mixed on our tests (recalculated)
2026-07-06P/E 23.3+6%Mixed on our tests (recalculated)
2026-07-09P/E 23.3+6%Mixed on our tests (recalculated)
2026-07-12P/E 22.9+4%Mixed on our tests (recalculated)
2026-07-13P/E 22.9+4%Mixed on our tests (recalculated)
2026-07-14P/E 22.9+4%Mixed on our tests (recalculated)
2026-07-20P/E 23.3+6%Mixed on our tests (recalculated)
2026-07-22P/E 23.3+6%Mixed on our tests (recalculated)
2026-07-25P/E 22.4+2%Mixed on our tests (recalculated)
2026-07-27P/E 22.4+2%Mixed on our tests (recalculated)
2026-07-31P/E 25.8+17%Mixed on our tests (recalculated)
2026-08-03P/E 26.6+21%Trading above its usual valuation
2026-08-07P/E 28.6+30%Trading above its usual valuation (recalculated)
2026-08-10P/E 28.5+30%Trading above its usual valuation
2026-08-14P/E 28.3+29%Trading above its usual valuation (recalculated)
2026-08-17P/E 28.2+28%Trading above its usual valuation
2026-08-21P/E 27.3+24%Trading above its usual valuation (recalculated)
2026-08-24P/E 27.4+25%Trading above its usual valuation
2026-08-27P/E 27.4+25%Trading above its usual valuation (recalculated)
2026-08-28P/E 28.6+30%Trading above its usual valuation (recalculated)
2026-08-30P/E 29.1+32%Trading above its usual valuation (recalculated)
2026-08-31P/E 29.1+32%Trading above its usual valuation
2026-09-05P/E 28.2+28%Trading above its usual valuation (recalculated)
2026-09-07P/E 28.2+28%Trading above its usual valuation
2026-09-12P/E 27.9+27%Trading above its usual valuation (recalculated)
2026-09-14P/E 27.9+27%Trading above its usual valuation
2026-09-19P/E 27.8+26%Trading above its usual valuation (recalculated)
2026-09-21P/E 27.8+26%Trading above its usual valuation
2026-09-26P/E 28.9+32%Trading above its usual valuation (recalculated)
2026-09-28P/E 28.9+32%Trading above its usual valuation
2026-10-03P/E 28.9+32%Trading above its usual valuation (recalculated)
2026-10-05P/E 28.9+32%Trading above its usual valuation ← now

Frequently asked questions

Is Microsoft stock overvalued?

At a blended P/E of 28.9 versus its historical normal P/E of 22.0, Microsoft trades about 32% above its typical valuation, with a PEG of 1.55 on 18.7% forward growth. tickerseer currently rates it trading above its usual valuation.

What is Microsoft's fair value and PEG?

Microsoft trades at a blended P/E of 28.9 against a historical normal P/E of 22.0, a PEG of 1.55, and a forward growth estimate of 18.7%. Priced at its historical normal P/E of 22.0 on the same blended earnings, the 2026-10-02 close of $517.53 corresponds to about $393 a share. This is a valuation reference, not a price target.

Has tickerseer's rating of Microsoft changed?

tickerseer's rating has not changed since 2026-06-03, but its reason has: it read weak on forward returns then and reads trading above its usual valuation now.

What is the analyst price target for Microsoft?

The mean Wall Street price target for Microsoft is $578.82 across 53 analysts, 10.8% above the current price. tickerseer's SeerForecast verdict is formed independently of analyst targets.

Industry: Systems Software. Create a free account to see the full analysis: the SeerAI score, its five quality sub-scores, valuation history, and the AI research note. Options setups and metric history are part of the paid plans.

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