Microsoft Corp (MSFT) is slightly overvalued and Palo Alto Networks Inc (PANW) is overvalued.
Both trade above our estimate of their intrinsic value. MSFT is the closer of the two: -6%, against -152% for PANW.
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 10.4x revenue multiple, adjusted for growth and margin, values the shares at $148.73; the price of $374.57 is 152% above that value.
Leak Score 53/100 on 9 of 12 signals
| Metric | MSFT | PANW |
|---|---|---|
| Verdict | Slightly overvalued | Overvalued |
| Price | $498.00 | $374.57 |
| Intrinsic value | $470.55 | $148.73 |
| Margin of safety | -6% | -152% |
| Leak Score | 65/100 (10/12) | 53/100 (9/12) |
| Market cap | $3.70T | $306.4B |
| Revenue growth, 5 years | 14.6% | 21.9% |
| Operating margin | 46.8% | 5.4% |
| Net margin | 40.3% | 2.7% |
| Return on equity | 34.0% | 1.7% |
| Debt to equity | 0.29 | 0.09 |
| P/E | 27.8x | 730.9x |
| Forward P/E | 21.2x | 76.9x |
| P/B | 8.4x | 11.1x |
| Dividend yield | 0.8% | — |