Microsoft Corp (MSFT) is slightly overvalued and Oracle Corp (ORCL) is undervalued.
Against our estimates of intrinsic value, ORCL trades at the wider discount: a margin of safety of +24%, against -6% for MSFT.
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 9.6x revenue multiple, adjusted for growth and margin, values the shares at $195.39; the price of $149.20 is 24% below that value.
Leak Score 53/100 on 9 of 12 signals
| Metric | MSFT | ORCL |
|---|---|---|
| Verdict | Slightly overvalued | Undervalued |
| Price | $498.00 | $149.20 |
| Intrinsic value | $470.55 | $195.39 |
| Margin of safety | -6% | +24% |
| Leak Score | 65/100 (10/12) | 53/100 (9/12) |
| Market cap | $3.70T | $451.1B |
| Revenue growth, 5 years | 14.6% | 10.7% |
| Operating margin | 46.8% | 34.2% |
| Net margin | 40.3% | 26.1% |
| Return on equity | 34.0% | 41.6% |
| Debt to equity | 0.29 | 2.53 |
| P/E | 27.8x | 23.4x |
| Forward P/E | 21.2x | 13.5x |
| P/B | 8.4x | 7.3x |
| Dividend yield | 0.8% | 1.3% |