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STOCK COMPARISON

Alphabet vs Microsoft: Fair Value & Quality

Both stocks run through our valuation models. Here is how Alphabet (GOOG) and Microsoft (MSFT) compare, as of Oct 30, 2026.

As of Oct 30, 2026, Fair Value Calculator sees Microsoft as the more attractively valued of the two: Alphabet trades at $278 versus a fair value of $306 (+10.0%), while Microsoft trades at $522 versus $574 (+10.0%).
Alphabet
GOOG · USD · Communication Services
+10.0%
upside to fair value
fairly valued
Price$278
Fair Value$306
Quality68/100
Fair ValueQualityUptrend
Microsoft
MSFT · USD · Information Technology
+10.0%
upside to fair value
undervalued
Price$522
Fair Value$574
Quality66/100
Fair ValueQualityUptrend
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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

AlphabetMicrosoft
Valuation
16.8×P/E (TTM)29.1×
18.3×Forward P/E22.0×
n/aMedian P/E at FY-end (10 FY, ex one-offs where documented)34.4×
8.83×P/S (TTM)11.72×
9.48×P/B8.79×
22.8×EV/EBITDA20.1×
1.10×PEG1.73×
+10.0%Fair value upside+10.0%
0.3%Dividend yield0.7%
$0.85Dividend per share$3.64
Profitability
34.0%Operating margin45.1%
1.42×EBIT margin trend (5Y)1.13×
48.7%Return on equity34.0%
22.2%Return on assets17.6%
Growth
24.2%Revenue growth (YoY)17.7%
12.5%Avg. growth/yr (3Y)16.1%
17.2%Avg. growth/yr (5Y)14.6%
+29.0%Value creation/yr+17.5%
Balance & size
903.3×Interest coverage (EBIT/interest)50.9×
0.11×Debt / equity0.07×
$3.9TMarket cap$3.9T
expensiveGrowth qualityexpensive
Microsoft, median P/E at fiscal year-end, 10 fiscal years (2017 to 2026), reported earnings, FY2017, 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.
Valuation multiples (P/E, P/S, P/B, EV/EBITDA) are shown but not scored here: the two companies sit in different sectors, and multiples only compare fairly between similar business models. PEG stays scored, as it relates the P/E to growth.

Alphabet leads: 6 to 4 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.

Alphabet Microsoft
ProfitabilityHow much profit the company makes from its sales and capital
84
76
Quality GrowthAre margins and returns getting better?
56
64
CashflowDo the profits arrive as real cash?
61
61
Financial strengthDebt, balance sheet and risk of trouble
82
79
InvestmentDoes it invest with discipline instead of growing at any price?
8
0
Low VolatilityHow calm the share price moves, does not count
52
58
Price momentumPrice momentum of the last 3 to 12 months, does not count
25
53
Near the 52-week highDistance to the 52-week high, does not count
20
60
New sharesBuys back shares or issues new ones?
84
83

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 familyAlphabetPrice $278MicrosoftPrice $522
DCF Models−24.6%below the price$210−30.0%below the price$365
Earnings-Based−7.3%close to the price$258−51.6%below the price$252
Dividend Discount−95.0%below the price$13.95−87.9%below the price$63.20
Multiples−53.5%below the price$129−32.8%below the price$350
Asset-Based−99.2%below the price$2.11−94.7%below the price$27.44
Growth DCF−40.5%below the price$166−51.8%below the price$251
Economic Profit−52.5%below the price$132−60.6%below the price$205
Growth Earnings+22.6%above the price$341−15.7%below the price$440
Matching families8 of 8
Minimum−99.2%below the price$2.11−94.7%below the price$27.44
Maximum+22.6%above the price$341−15.7%below the price$440
Median−46.5%below the price$149−51.7%below the price$252
Geometric mean−71.6%below the price$79.14−64.9%below the price$183
Ahead family by family5 of 83 of 8

Minimum, maximum, median and geometric mean only use the families both stocks have (matching families: 8 of 8), so a family without a value on one side does not distort the comparison. Ahead in a family is the stock whose fair value there sits higher relative to its price. Geometric because deviations are ratios: half the price and twice the price average to 100%, not 125%.

Family by family: Alphabet is ahead in 5 of 8 shared families, Microsoft in 3.

Alphabet: 22 of 26 models see the stock below the current price.

Microsoft: 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.

Alphabet
Price $278
Fair Value $306
Bear $191Bull $586
Microsoft
Price $522
Fair Value $574
Bear $287Bull $746

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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.

Alphabet · Communication Services

Quality score68 · Top 25%
Fair value upside+10.0% · above median

Microsoft · Information Technology

Quality score66 · Top 25%
Fair value upside+10.0% · above median

Bottom line

As of Oct 30, 2026, Fair Value Calculator sees Microsoft as the more attractively valued of the two: Alphabet trades at $278 versus a fair value of $306 (+10.0%), while Microsoft trades at $522 versus $574 (+10.0%).

Alphabet has the higher quality score (68/100).

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.