MICROSOFT (MSFT) BMO (ZMSF) fair value: what the stock is really worth
As of Oct 2, 2026: fair value of MICROSOFT (MSFT) BMO C$11.26, price C$10.26, upside +9.8%, quality 62 out of 100. Calculated from audited financials with 26 valuation models and 37 quality factors, updated daily.
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Price vs Fair Value
White line = price, green steps = our fair value per fiscal year. As of Sep 29, 2026.
How to read this chart
10‑month range C$7.14 – C$10.26 · fair‑value band C$6.42 – C$14.64 · the C$10.26 price screens below the C$11.26 fair value. As of Sep 29, 2026.
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Microsoft Corporation develops and supports software, services, devices, and solutions worldwide.
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Microsoft Corporation develops and supports software, services, devices, and solutions worldwide. The Productivity and Business Processes segment offers Microsoft 365 commercial, enterprise mobility + security, windows commercial, power BI, exchange, sharepoint, Microsoft teams, security and compliance, and copilot; Microsoft 365 commercial products, such as Windows commercial on-premises and office licensed services; Microsoft 365 consumer products and cloud services, including Microsoft 365 consumer subscriptions, office licensed on-premises, and other consumer services; LinkedIn; dynamics products and cloud services, such as dynamics 365, cloud-based applications, and on-premises ERP and CRM applications. Its Intelligent Cloud segment provides Server products and cloud services comprising Azure and other cloud services, GitHub, Nuance Healthcare, virtual desktop offerings, and other cloud services; server products, including SQL and windows server, visual studio and system center related client access licenses, and other on-premises offerings; enterprise and partner services, such as enterprise support and nuance professional services, industry solutions, Microsoft partner network, and learning experience. The Personal Computing segment provides windows and devices, such as Windows OEM licensing and devices and surface and PC accessories; gaming services and solutions, such as Xbox hardware, content, and services, first- and third-party content Xbox game pass, subscriptions, and cloud gaming, advertising, and other cloud services; search and news advertising services. It sells its products through OEMs, distributors, and resellers; and online and retail stores. The company has a strategic collaboration with Mayo Clinic, Inc. for the development of a frontier AI model for healthcare; and Global Objects, Inc. to build a retrieval-grounded generative AI world model. The company was founded in 1975 and is headquartered in Redmond, Washington.
Stock analysis
MICROSOFT (MSFT) BMO CDR (CAD HEDGED) (ZMSF) currently trades at C$10.26, while our model-based Fair Value estimate is C$11.26, so the stock looks roughly fairly valued today (gap 8.9%).
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Valuation
Bull case: the Growth Earnings group reads highest at a median of C$11.26 per share, and 9 of the 26 models we run sit above the C$10.26 price.
Bear case: the Dividend Discount group reads lowest at C$1.74, and 17 of the 26 models stay below the price. Evidence for this calculation is medium.
Scenario range: C$6.42 (bear) to C$14.64 (bull), the price of C$10.26 sits inside it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.
Quality & growth
The Quality Score stands at 62/100 (solid quality), in the Technology sector.
Expensive Growth: The company is growing, but growth may require heavy reinvestment or weak cash conversion.
MICROSOFT (MSFT) BMO CDR (CAD HEDGED) reported revenue of $282B in FY2025 versus $198B in FY2022, a compound +12.4%/yr. Reported net income was $102B in FY2025, compounding +11.9%/yr from FY2022.
Key figures
Market cap C$76.3B (≈ $53.5B) · P/E ratio 0.4 · P/S ratio 0.16 · EPS (TTM) C$23.45 · Net margin 36.1% · Return on equity 34.0% · Return on assets (EBIT) 21.6% · Operating margin 46.3%.
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 53 out of 100 (low confidence).
What moves the price
For context, the median of 10 Technology peers we cover trades at −23% fair-value upside, at 10%, ZMSF screens cheaper than that median.
Fair Value models
Bear C$6.42Fair Value C$11.26Bull C$14.64
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above is their evidence-weighted blend, not the output of a single model. Based on fiscal year 2025 figures (about 12 months old). Earnings retained since then (C$19.89 per share) are deliberately not added.Bear ⓘBear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull ⓘBull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. If a model's bull case is above four times its base value, the table shows that limit with a > sign (like the overall Bull above): beyond it no assumption holds.Evidence ⓘEvidence = how well-backed THIS model's estimate is for this stock (0–100): how complete and reliable its input data are, and how well the model fits the company. The final Fair Value is an evidence-weighted blend, so better-evidenced models count more. Green ≥70, amber 50–69, grey below 50.
Growth Quality ⓘGrowth is valuable only when reinvestment earns attractive returns (Aswath Damodaran): sustainable growth depends on return on capital, reinvestment and efficiency. Basis: total company revenue over the periods shown on the cards (3Y/5Y/all years), not per share, so a merger can show up as a growth jump; per-share earnings growth is in the value-creation card.62/100
The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Revenue growth 1 year
+14.9%
Revenue growth 3 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+12.4%
’22
’23
’24
’25
What shareholders gained per year (last 3 years) ⓘWhat the business itself delivers per year: earnings growth per share plus the dividend yield. This is what you get IF the market keeps valuing the stock the same way: it contains no assumption about the market changing its mind. Computed per share, so buybacks count and a merger does not pass as growth. For a company that pays no dividend it is pure earnings growth per share. Period: earnings growth per share as CAGR over the last 3 reported fiscal years (annual statements), plus the current dividend yield. The start value is the median of the three years around the start, so a single crisis year (a pandemic or a write-down) does not distort the rate.
+12.0%
Earnings growth per share plus dividend.
Earnings per share, growth per year+12.0%
Dividend (yield on the price)0.0%
Profit margin 2022 to 2025 ⓘOperating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.42% → 46%
Compare MICROSOFT (MSFT) BMO CDR (CAD HEDGED) with another stock
Price, fair value, quality and upside side by side.
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Peer GroupⓘHow this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.Software - Infrastructure · 332 stocks
Beats the industry median on 13/14 measures
Overall it ranks above its industry peers.
Valuation
Quality Score62 · Above median
Fair Value upside+10.0% · Above median
Profitability
Return on equity (TTM)34.0% · Top 25%
Return on assets14.8% · Top 25%
Net margin (TTM)39.3% · Top 25%
Operating margin (TTM)46.3% · Top 25%
Growth and dividend
Revenue growth18.3% · Above median
Dividend yield (TTM)44.7% · Top 25%
Balance sheet
Debt / equity0.12× · Above median
Valuation Multiplesvs Software - Infrastructure median · lower = cheaper
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Is MICROSOFT (MSFT) BMO (ZMSF) overvalued or undervalued?
As of Sep 29, 2026, our model estimates a fair value of C$11.26 versus a price of C$10.26, about +10% upside (fairly valued).
What is the fair value of ZMSF?
Our model-based fair value for MICROSOFT (MSFT) BMO CDR (CAD HEDGED) is C$11.26 (as of Sep 29, 2026), built from audited fundamentals. The current price: C$10.26.
What is the quality score of ZMSF?
MICROSOFT (MSFT) BMO CDR (CAD HEDGED) has a Quality Score of 62/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the price target for MICROSOFT (MSFT) BMO (ZMSF)?
Our model-based price target is the fair value of C$11.26 (as of Sep 29, 2026) from 26 valuation models. Cautious scenario C$6.42, optimistic scenario C$14.64. It is a calculation from audited fundamentals, not an analyst target.
What is the MICROSOFT (MSFT) BMO CDR (CAD HEDGED) stock forecast for 2026?
Our models put fair value at C$11.26, about +10% upside versus a price of C$10.26 (fairly valued). Cautious scenario C$6.42, optimistic scenario C$14.64. The calculation is refreshed regularly with new filings.
What is the revenue of MICROSOFT (MSFT) BMO (ZMSF)?
MICROSOFT (MSFT) BMO CDR (CAD HEDGED) reported trailing-twelve-month revenue of about $318B (latest available figure, as of Sep 29, 2026).
What is the intrinsic value of MICROSOFT (MSFT) BMO (ZMSF)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For MICROSOFT (MSFT) BMO CDR (CAD HEDGED) it is C$11.26 per share (as of Sep 29, 2026), against a price of C$10.26. It is the blended result of 26 valuation models (cash flow, earnings, asset, dividend).
Is MICROSOFT (MSFT) BMO CDR (CAD HEDGED) stock overvalued or undervalued in 2026?
As of Sep 29, 2026, ZMSF trades below its calculated fair value: price C$10.26, fair value C$11.26, a gap of about +10% (fairly valued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.
Is fair value the same as the market price of ZMSF?
No. The price is what the market pays today (C$10.26); the fair value is what the company's own numbers justify (C$11.26). For MICROSOFT (MSFT) BMO CDR (CAD HEDGED) the two are C$1.00 per share apart. That gap is exactly why we show both numbers side by side.
How much is MICROSOFT (MSFT) BMO CDR (CAD HEDGED) worth?
The market values MICROSOFT (MSFT) BMO CDR (CAD HEDGED) at about C$76.3B (market capitalisation, as of Sep 29, 2026). Per share that is C$10.26; our models calculate a fair value of C$11.26 per share.
What do the bullish and bearish scenarios say about ZMSF?
Our models span a range for MICROSOFT (MSFT) BMO CDR (CAD HEDGED): cautious scenario C$6.42, base C$11.26, optimistic C$14.64 per share (as of Sep 29, 2026, price C$10.26). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of ZMSF?
MICROSOFT (MSFT) BMO CDR (CAD HEDGED) trades at a price-to-earnings ratio of 0.4 (as of Sep 29, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of C$11.26 is built from several models across several years. Other multiples: PEG 0.0, P/B 0.2, P/S 0.2.
What is the PEG ratio of ZMSF?
The PEG ratio of MICROSOFT (MSFT) BMO CDR (CAD HEDGED) is 0.02 (P/E divided by earnings growth, as of Sep 29, 2026). That is below 1, so growth is priced more cheaply than the earnings multiple alone suggests.
How solid is the balance sheet of MICROSOFT (MSFT) BMO (ZMSF)?
Balance-sheet figures for MICROSOFT (MSFT) BMO CDR (CAD HEDGED) (as of Sep 29, 2026): return on equity 34.0%, debt of 0.12 per unit of equity. They feed the Quality Score of 62/100, which measures business quality independently of the share price.
Which stocks are comparable to MICROSOFT (MSFT) BMO CDR (CAD HEDGED)?
From the same area (Technology) we also value Microsoft Corporation, Palantir Technologies Inc, Oracle Corporation, CrowdStrike Holdings, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.
Is MICROSOFT (MSFT) BMO CDR (CAD HEDGED) stock attractive at the current price?
The data as of Sep 29, 2026: price C$10.26, calculated fair value C$11.26 (+10%), Quality Score 62/100, from 26 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.
How is the fair value of ZMSF calculated?
We run MICROSOFT (MSFT) BMO CDR (CAD HEDGED) through 26 models from four families: discounted cash flow, earnings models, asset and balance-sheet models, and dividend models. Every model gets the same audited fundamentals; the result is the weighted average of C$11.26, with the spread shown as a cautious and an optimistic scenario.
Is it still worth investing in stocks now?
The global stock market currently sits 14.5 % above its aggregate fair value. MICROSOFT (MSFT) BMO CDR (CAD HEDGED) currently trades 9 % below its own fair value, and the market average says nothing about that. An expensive market is no reason to stay out and no reason to buy everything at once: keep a broad savings plan running, buy single stocks only with money you can do without, and hold part of your money liquid while the market is high. The full picture including sectors is on is it worth investing now.
What is the share price of MICROSOFT (MSFT) BMO (ZMSF)?
The closing price on Oct 2, 2026 was C$10.26. Our model-based fair value is C$11.26, about +10% upside (fairly valued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with MICROSOFT (MSFT) BMO CDR (CAD HEDGED) right now?
The price sits close to our fair value, market and models broadly agree here, little valuation tension. A fairly wide model range (C$6.42 to C$14.64) leaves room in how you read the outcome.
Key figures of MICROSOFT (MSFT) BMO CDR (CAD HEDGED)
How large is the market capitalisation of MICROSOFT (MSFT) BMO (ZMSF)?
The market capitalisation of MICROSOFT (MSFT) BMO CDR (CAD HEDGED) is C$76.3B (≈ $53.5B). The stock-market value of the whole company: share price times number of shares. It is what the market asks for the entire business today.
What is the P/S ratio of MICROSOFT (MSFT) BMO (ZMSF)?
The price-to-sales ratio of MICROSOFT (MSFT) BMO CDR (CAD HEDGED) is 0.16 (P/E × margin). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of MICROSOFT (MSFT) BMO (ZMSF)?
Earnings per share at MICROSOFT (MSFT) BMO CDR (CAD HEDGED) are C$23.45 (price ÷ EPS = P/E 0.4). Earnings per share over the last twelve months: total profit spread across every single share.
What is the net margin of MICROSOFT (MSFT) BMO (ZMSF)?
The net margin of MICROSOFT (MSFT) BMO CDR (CAD HEDGED) is 36.1% (fiscal year 2025). How much of every unit of revenue ends up as profit. 10% means 10 cents of profit per dollar of sales.
What is the return on equity of MICROSOFT (MSFT) BMO (ZMSF)?
The return on equity (ROE) of MICROSOFT (MSFT) BMO CDR (CAD HEDGED) is 34.0% (last twelve months). Profit relative to shareholders' equity, how efficiently the company works with its owners' money.
What is the EBIT return on assets of MICROSOFT (MSFT) BMO (ZMSF)?
On an EBIT basis the return on assets of MICROSOFT (MSFT) BMO CDR (CAD HEDGED) is 21.6% (avg 4y). Operating profit (EBIT) relative to everything the company owns, as a multi-year average. It describes the business model rather than one good or bad year.
What is the operating margin of MICROSOFT (MSFT) BMO (ZMSF)?
The operating margin of MICROSOFT (MSFT) BMO CDR (CAD HEDGED) is 46.3% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at MICROSOFT (MSFT) BMO (ZMSF)?
Revenue at MICROSOFT (MSFT) BMO CDR (CAD HEDGED) is growing +18.3% versus a year earlier (3y avg +12.4%). How much revenue grew versus a year earlier (YoY). The 3-year average next to it puts the single year in context.
How fast are earnings growing at MICROSOFT (MSFT) BMO (ZMSF)?
Earnings per share at MICROSOFT (MSFT) BMO CDR (CAD HEDGED) are growing +23.4% versus a year earlier. How much earnings per share grew versus a year earlier.
How much free cash flow does MICROSOFT (MSFT) BMO (ZMSF) generate?
The free cash flow of MICROSOFT (MSFT) BMO CDR (CAD HEDGED) is $71.6B (fiscal year 2025). The cash truly left after running and investing in the business, this is what pays dividends and buybacks.
How much net debt does MICROSOFT (MSFT) BMO (ZMSF) carry?
The net debt of MICROSOFT (MSFT) BMO CDR (CAD HEDGED) is $12.9B (fiscal year 2025, ≈ 0.2 yrs of FCF). Debt minus cash on hand. The note shows how many years of free cash flow could in theory pay it off.
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Some data
Sep 29, 2026