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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 Aug 8, 2026.

As of Aug 8, 2026, Fair Value Calculator sees Oracle as the less overvalued of the two: Microsoft trades at $500 versus a fair value of $274 (-45%), while Oracle trades at $143 versus $86.48 (-40%).
Microsoft
MSFT · USD · Information Technology
-45%
upside to fair value
overvalued
Price$500
Fair Value$274
Quality65/100
Oracle
ORCL · USD · Information Technology
-40%
upside to fair value
overvalued
Price$143
Fair Value$86.48
Quality33/100

Head-to-head numbers

Green value = the better side for that row (for valuation multiples: lower = cheaper).

MicrosoftOracle
Valuation
22.9×P/E (TTM)22.6×
8.99×P/S (TTM)5.47×
8.33×P/B8.67×
15.6×EV/EBITDA15.1×
1.19×PEG0.74×
0.9%Dividend yield1.5%
$3.56Dividend per share$2.00
Profitability
39%Net margin25%
46%Operating margin36%
34%Return on equity53%
15%Return on assets7%
Growth
18%Revenue growth (YoY)21%
12.4%Avg. growth/yr (3Y)10.5%
14.5%Avg. growth/yr (5Y)10.7%
Balance & size
0.12×Debt / equity2.88×
$2.9TMarket cap$369B
expensiveGrowth qualityexpensive

Even match: 7 to 7 metric wins.

Dash = 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 65 · market factors 51 Oracleof which business quality 41 · market factors 9
ProfitabilityMargins and returns on capital today
75
58
Quality GrowthAre margins and returns improving?
53
45
CashflowEarnings quality: real cash, not paper profit
71
48
Fin. StrengthBalance sheet, leverage, solvency risk
79
23
InvestmentDisciplined investing over empire-building
1
0
Low VolatilityCalm price path (market factor)
57
3
MomentumPrice trend over the last 3–12 months (market factor)
46
17
52W MomentumDistance to the 52-week high (market factor)
52
4
Net IssuanceBuybacks instead of dilution
84
64

What the models say

The median fair value (base case) per model family, each in the currency of its trading venue. Green = above the current price, red = below.

Microsoft

DCF Models$289
Earnings-Based$189
Dividend Discount$61.93
Multiples$206
Asset-Based$30.98
Growth DCF$201
Economic Profit$184
Growth Earnings$276

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

Oracle

Earnings-Based$54.46
Multiples$78.35
Asset-Based$9.89
Economic Profit$67.10
Growth Earnings$95.38

13 of 14 models see the stock below the current price.

Scenario ranges

From our cautious bear case to the optimistic bull case. The white tick is the current price: left of fair value means room to run.

Microsoft
Bear $159Fair Value $274Bull $358
$500 = current price (white tick)
Oracle
Bear $54.02Fair Value $86.48Bull $119
$143 = current price (white tick)

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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 score65 · Top 25%
Fair value upside-45% · below median

Oracle · Information Technology

Quality score33 · bottom 25%
Fair value upside-40% · below median

Bottom line

As of Aug 8, 2026, Fair Value Calculator sees Oracle as the less overvalued of the two: Microsoft trades at $500 versus a fair value of $274 (-45%), while Oracle trades at $143 versus $86.48 (-40%).

Microsoft has the higher quality score (65/100).

See the full analysis →

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A model-based valuation snapshot from 21 models. Values change with price and fundamentals; the date shown above applies.