Microsoft Corp (MSFT) is slightly overvalued and Cloudflare Inc (NET) is overvalued.
Both trade above our estimate of their intrinsic value. MSFT is the closer of the two: -6%, against -758% for NET.
Values as of the 22 Sept 2026 close.
A 10.6x revenue multiple, adjusted for growth and margin, values the shares at $470.55; the price of $498.00 is 6% above that value.
Leak Score 65/100 on 10 of 12 signals
A 6.2x revenue multiple, discounted for its losses, values the shares at $41.13; the price of $353.00 is 758% above that value.
Leak Score 46/100 on 7 of 12 signals
| Metric | MSFT | NET |
|---|---|---|
| Verdict | Slightly overvalued | Overvalued |
| Price | $498.00 | $353.00 |
| Intrinsic value | $470.55 | $41.13 |
| Margin of safety | -6% | -758% |
| Leak Score | 65/100 (10/12) | 46/100 (7/12) |
| Market cap | $3.70T | $125.7B |
| Revenue growth, 5 years | 14.6% | 38.1% |
| Operating margin | 46.8% | -7.9% |
| Net margin | 40.3% | -8.2% |
| Return on equity | 34.0% | -14.4% |
| Debt to equity | 0.29 | 2.18 |
| P/E | 27.8x | — |
| Forward P/E | 21.2x | 211.0x |
| P/B | 8.4x | 77.6x |
| Dividend yield | 0.8% | — |