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STOCK COMPARISON

Microsoft vs Nvidia: Fair Value & Quality

Both stocks run through our valuation models. Here is how Microsoft (MSFT) and Nvidia (NVDA) compare, as of Oct 15, 2026.

As of Oct 15, 2026, Fair Value Calculator sees Microsoft as the more attractively valued of the two: Microsoft trades at $534 versus a fair value of $598 (+12.0%), while Nvidia trades at $221 versus $199 (−10.3%).
Microsoft
MSFT · USD · Information Technology
+12.0%
upside to fair value
undervalued
Price$534
Fair Value$598
Quality66/100
Nvidia
NVDA · USD · Information Technology
−10.3%
upside to fair value
overvalued
Price$221
Fair Value$199
Quality73/100
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Head-to-head numbers

Green is the better side of a row, red the weaker one (for valuation multiples: lower = cheaper). Grey rows are for reference only and are not scored.

betterweakerfor reference, not scored

MicrosoftNvidia
Valuation
29.7×P/E (TTM)28.4×
22.5×Forward P/E (FY2028)14.1×
34.4×Median P/E at FY-end (10 FY, ex one-offs where documented)n/a
11.99×P/S (TTM)17.91×
8.99×P/B34.49×
20.5×EV/EBITDA26.9×
1.62×PEG0.49×
+12.0%Fair value upside−10.3%
0.7%Dividend yield0.1%
$3.64Dividend per share$0.28
Profitability
45.1%Operating margin66.2%
1.13×EBIT margin trend (5Y)2.22×
34.0%Return on equity117.2%
17.6%Return on assets58.1%
Growth
17.7%Revenue growth (YoY)105.9%
16.1%Avg. growth/yr (3Y)100.0%
14.6%Avg. growth/yr (5Y)66.9%
+17.5%Value creation/yr+97.0%
Balance & size
50.9×Interest coverage (EBIT/interest)503.4×
0.07×Debt / equity0.05×
$4.0TMarket cap$5.4T
expensiveGrowth qualityhealthy
Microsoft, median P/E at fiscal year-end, 10 fiscal years (2017 to 2026), reported earnings, FY2026 ex one-offs: 34.4.
Forward P/E: price divided by the analyst consensus for the first fiscal year that has not started yet. The current year carries special items from quarters already reported.

Nvidia leads: 5 to 11 metric wins.

n/a = not meaningfully computable, for example with negative equity.

Quality in detail

The quality score, broken down into the same factor families as on the stock page, 0 to 100 per family.

Microsoft Nvidia
ProfitabilityHow much profit the company makes from its sales and capital
76
96
Quality GrowthAre margins and returns getting better?
64
34
CashflowDo the profits arrive as real cash?
61
81
Financial strengthDebt, balance sheet and risk of trouble
79
83
InvestmentDoes it invest with discipline instead of growing at any price?
0
32
Low VolatilityHow calm the share price moves, does not count
57
25
MomentumPrice trend of the last 3 to 12 months, does not count
66
53
Near the 52-week highDistance to the 52-week high, does not count
67
64
New sharesBuys back shares or issues new ones?
83
91

What the models say

How far the median fair value (base case) per model family sits from the current price, in percent. The amount in the currency of the trading venue is shown underneath.

above the price, more than 15% above close to the price, 85% to 115% of the price below the price, more than 15% below

Model familyMicrosoftPrice $534NvidiaPrice $221
DCF Models−29.5%below the price$376−28.7%below the price$158
Earnings-Based−52.7%below the price$252−33.0%below the price$148
Dividend Discount−87.3%below the price$68.03−99.7%below the price$0.77
Multiples−27.4%below the price$387−66.4%below the price$74.31
Asset-Based−92.5%below the price$39.92−98.0%below the price$4.36
Growth DCF−50.6%below the price$264−51.2%below the price$108
Economic Profit−59.2%below the price$218−71.4%below the price$63.33
Growth Earnings−17.6%below the price$440−7.5%close to the price$205
Minimum−92.5%below the price$39.92−99.7%below the price$0.77
Maximum−17.6%below the price$440−7.5%close to the price$205
Median−51.6%below the price$258−58.8%below the price$91.21
Geometric mean−62.6%below the price$200−81.4%below the price$41.12

Minimum, maximum, median and geometric mean refer to the family values in this table. Geometric because deviations are ratios: half the price and twice the price average to 100%, not 125%.

Microsoft: 23 of 26 models see the stock below the current price.

Nvidia: 23 of 26 models see the stock below the current price.

Scenario ranges

From our cautious bear scenario to the optimistic bull scenario. The white tick is the current price (value above it), the green tick the fair value (value below it): if the price sits left of the fair value, there is room to rise.

Microsoft
Price $534
Fair Value $598
Bear $298Bull $777
Nvidia
Price $221
Fair Value $199
Bear $130Bull $299

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Ranked within their sector

Where each stock sits within its sector peer group. Band = middle 50% of peers, tick = median, dot = this stock.

Microsoft · Information Technology

Quality score66 · Top 25%
Fair value upside+12.0% · above median

Nvidia · Information Technology

Quality score73 · Top 25%
Fair value upside−10.3% · above median

Bottom line

As of Oct 15, 2026, Fair Value Calculator sees Microsoft as the more attractively valued of the two: Microsoft trades at $534 versus a fair value of $598 (+12.0%), while Nvidia trades at $221 versus $199 (−10.3%).

Nvidia has the higher quality score (73/100).

Open Microsoft live analysis →

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A model-based valuation snapshot from 26 models. Values change with price and fundamentals; the date shown above applies.