STOCK COMPARISON
Toast vs Microsoft: Fair Value & Quality
Both stocks run through our valuation models. Here is how Toast (TOST) and Microsoft (MSFT) compare, as of Aug 8, 2026.
As of Aug 8, 2026, Fair Value Calculator sees Microsoft as the less overvalued of the two: Toast trades at $34.72 versus a fair value of $8.62 (-75%), while Microsoft trades at $500 versus $274 (-45%).
Toast
TOST · USD · Financials
-75%
upside to fair value
overvalued
Price$34.72
Fair Value$8.62
Quality52/100
Microsoft
MSFT · USD · Information Technology
-45%
upside to fair value
overvalued
Price$500
Fair Value$274
Quality65/100
Head-to-head numbers
Green value = the better side for that row (for valuation multiples: lower = cheaper).
ToastMicrosoft
Valuation
43.8×P/E (TTM)22.9×
2.64×P/S (TTM)8.99×
8.01×P/B8.33×
37.7×EV/EBITDA15.6×
0.25×PEG1.19×
—Dividend yield0.9%
—Dividend per share$3.56
Profitability
6%Net margin39%
7%Operating margin46%
23%Return on equity34%
8%Return on assets15%
Growth
22%Revenue growth (YoY)18%
31.1%Avg. growth/yr (3Y)12.4%
49.5%Avg. growth/yr (5Y)14.5%
Balance & size
0.08×Debt / equity0.12×
$17BMarket cap$2.9T
healthyGrowth qualityexpensive
Toast leads: 7 to 6 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.
Toastof which business quality 68 · market factors 29
Microsoftof which business quality 65 · market factors 51
ProfitabilityMargins and returns on capital today
70
75
Quality GrowthAre margins and returns improving?
75
53
CashflowEarnings quality: real cash, not paper profit
71
71
Fin. StrengthBalance sheet, leverage, solvency risk
99
79
InvestmentDisciplined investing over empire-building
33
1
Low VolatilityCalm price path (market factor)
16
57
MomentumPrice trend over the last 3–12 months (market factor)
41
46
52W MomentumDistance to the 52-week high (market factor)
25
52
Net IssuanceBuybacks instead of dilution
37
84
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.
Toast
DCF Models$27.50
Earnings-Based$23.20
Dividend Discount$20.48
Multiples$11.47
Asset-Based$2.76
Growth DCF$29.51
Economic Profit$9.31
Growth Earnings$29.89
25 of 26 models see the stock below the current price.
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.
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.
Toast
Bear $6.46Fair Value $8.62Bull $10.77
$34.72 = current price (white tick)
Microsoft
Bear $159Fair Value $274Bull $358
$500 = current price (white tick)
Compare two other stocks
Tap a field and type again, ticker or company name.
Ranked within their sector
Where each stock sits within its sector peer group. Band = middle 50% of peers, tick = median, dot = this stock.
Toast · Financials
Quality score52 · below median
Fair value upside-75% · bottom 25%
Microsoft · Information Technology
Quality score65 · Top 25%
Fair value upside-45% · below median
Bottom line
As of Aug 8, 2026, Fair Value Calculator sees Microsoft as the less overvalued of the two: Toast trades at $34.72 versus a fair value of $8.62 (-75%), while Microsoft trades at $500 versus $274 (-45%).
Microsoft has the higher quality score (65/100).
See the full analysis →
More comparisons
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A model-based valuation snapshot from 21 models. Values change with price and fundamentals; the date shown above applies.
