MSFTBULLISH

MSFT EV/EBITDA Analysis

23.6x

Higher than 56% of Technology sector peers

Updated 886h ago·SEC filings & market data

Key Takeaway

EV/EBITDA (enterprise value divided by earnings before interest, taxes, depreciation, and amortization) compares a company's total value to its cash operating profit; Microsoft's current 23.6x means investors pay about $23.60 for each dollar of EBITDA.

Sector Performance

56th percentile

MSFT

23.6x

Sector Median

18.4x

Sector Avg

47.7x

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Deep Analysis

This is slightly above the sector median of 22.9x, placing Microsoft at the 52nd percentile among its technology peers—essentially in line with the typical valuation. The metric shows no trend data because the year-over-year change and quarter-over-quarter change are both reported as N/A, and there are no prior quarterly figures available for comparison. With a valuation near the sector median and no clear directional signal, the risk is average relative to peers, but the lack of trend information means investors cannot gauge whether the multiple is expanding or contracting. This neutral-to-slightly-above-median level supports the overall BULLISH verdict because it does not suggest overvaluation, leaving room for growth to drive further upside.

Frequently Asked Questions

What does the EV/EBITDA tell investors about MSFT?

A valuation multiple preferred by analysts for capital-intensive or leveraged businesses. Useful for cross-sector comparisons where earnings can be distorted by debt.

How is the EV/EBITDA calculated?

EV/EBITDA is calculated as: Enterprise Value / EBITDA.

How does MSFT's EV/EBITDA compare to its sector?

MSFT's EV/EBITDA of 23.6x compares to a Technology sector median of 18.4x, placing it in the 56th percentile.

Who are MSFT's closest peers by EV/EBITDA?

The closest Technology peers by EV/EBITDA include: BR (18.5x), SQ (18.2x), AMAT (19.3x), ADI (24.2x), APH (24.5x).

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Learn More About EV/EBITDA

EV/EBITDA Explained: The Valuation Metric Pro Investors Actually Use

Learn what EV/EBITDA is, why it beats P/E for capital-heavy companies, typical sector ranges, and key limitations every serious investor should know.

The Formula

Enterprise Value / EBITDA

Why It Matters

A valuation multiple preferred by analysts for capital-intensive or leveraged businesses. Useful for cross-sector comparisons where earnings can be distorted by debt.