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STOCK COMPARISON

Microsoft vs Oracle: Fair Value & Quality

Both stocks run through our valuation models. Here is how Microsoft (MSFT) and Oracle (ORCL) compare, as of Sep 25, 2026.

As of Sep 25, 2026, Fair Value Calculator sees Microsoft as the more attractively valued of the two: Microsoft trades at $498 versus a fair value of $551 (+11%), while Oracle trades at $140 versus $112 (-20%).
Microsoft
MSFT · USD · Information Technology
+11%
upside to fair value
undervalued
Price$498
Fair Value$551
Quality66/100
Oracle
ORCL · USD · Information Technology
-20%
upside to fair value
overvalued
Price$140
Fair Value$112
Quality44/100
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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

MicrosoftOracle
Valuation
27.8×P/E (TTM)22.7×
28.8×P/E ex one-offs (FY2026)22.2×
11.18×P/S (TTM)5.67×
8.39×P/B9.57× · book value is mostly goodwill
19.2×EV/EBITDA14.5×
1.62×PEG0.81×
+10.6%Fair value upside−19.5%
0.7%Dividend yield1.4%
$3.64Dividend per share$2.00
Profitability
45%Operating margin36%
1.13×EBIT margin trend (5Y)0.82×
34%Return on equity41%
14%Return on assets6%
Growth
18%Revenue growth (YoY)30%
16.1%Avg. growth/yr (3Y)10.5%
14.6%Avg. growth/yr (5Y)10.7%
+17.5%Value creation/yr+13.2%
Balance & size
50.9×Interest coverage (EBIT/interest)4.5×
0.07×Debt / equity2.88×
$3.7TMarket cap$407B
expensiveGrowth qualityexpensive
The P/E excluding one-off items is only shown where the special items are documented in the accounts (our own raw data or SEC filings). If one side lacks it, the reported P/E stays scored.

Microsoft leads: 9 to 5 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.

Microsoftof which business quality 64 · market factors 63 Oracleof which business quality 42 · market factors 14
ProfitabilityMargins and returns on capital today
76
58
Quality GrowthAre margins and returns improving?
64
45
CashflowEarnings quality: real cash, not paper profit
61
48
Fin. StrengthBalance sheet, leverage, solvency risk
79
24
InvestmentDisciplined investing over empire-building
0
0
Low VolatilityCalm price path (market factor)
58
7
MomentumPrice trend over the last 3–12 months (market factor)
70
24
52W MomentumDistance to the 52-week high (market factor)
55
6
Net IssuanceShare count: buybacks or dilution?
83
64

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 $498OraclePrice $140
DCF Models-24%below the price$376n/a
Earnings-Based-49%below the price$252-63%below the price$51.88
Dividend Discount-86%below the price$68.03n/a
Multiples-22%below the price$387-17%below the price$115
Asset-Based-92%below the price$39.92-93%below the price$9.42
Growth DCF-47%below the price$264n/a
Economic Profit-54%below the price$231-54%below the price$63.92
Growth Earnings-12%close to the price$440-20%below the price$112
Minimum-92%below the price$39.92-93%below the price$9.42
Maximum-12%close to the price$440-17%below the price$115
Median-48%below the price$258-54%below the price$63.92
Geometric mean-60%below the price$201-62%below the price$52.66

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: 21 of 26 models see the stock below the current price.

Oracle: 11 of 14 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 $498
Fair Value $551
Bear $275Bull $717
Oracle
Price $140
Fair Value $112
Bear $78.58Bull $165

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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+11% · above median

Oracle · Information Technology

Quality score44 · below median
Fair value upside-20% · above median

Bottom line

As of Sep 25, 2026, Fair Value Calculator sees Microsoft as the more attractively valued of the two: Microsoft trades at $498 versus a fair value of $551 (+11%), while Oracle trades at $140 versus $112 (-20%).

Microsoft has the higher quality score (66/100).

Open Microsoft live analysis →
Microsoft · Oracle

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