Exploring The Competitive Space: Microsoft Versus Industry Peers In Software
In the fast-paced and highly competitive business world of today, conducting thorough company analysis is essential for investors and industry observers. In this article, we will conduct an extensive industry comparison, evaluating
Microsoft Background
Company | P/E | P/B | P/S | ROE | EBITDA (in billions) | Gross Profit (in billions) | Revenue Growth |
---|---|---|---|---|---|---|---|
30.52 | 9.30 | 10.81 | 8.17% | 12.27% | |||
Oracle Corp | 34.66 | 24.75 | 7.56 | 19.27% | 6.4% | ||
ServiceNow Inc | 118.66 | 17.44 | 15.40 | 4.06% | 21.34% | ||
Palo Alto Networks Inc | 99.62 | 18.31 | 14.58 | 4.35% | 14.29% | ||
Fortinet Inc | 41.34 | 48.09 | 12.11 | 43.82% | 17.31% | ||
Gen Digital Inc | 25.81 | 7.54 | 4.23 | 7.48% | 4.01% | ||
Monday.Com Ltd | 390.92 | 11.73 | 13.07 | 2.3% | 6.76% | ||
Dolby Laboratories Inc | 29.63 | 3.07 | 5.92 | 2.72% | 13.13% | ||
CommVault Systems Inc | 39.03 | 22.67 | 7.11 | 3.9% | 21.13% | ||
Qualys Inc | 26.14 | 9.29 | 7.47 | 9.49% | 10.11% | ||
SolarWinds Corp | 28.59 | 2.24 | 4.01 | 5.26% | 6.14% | ||
Progress Software Corp | 34.86 | 5.31 | 3.17 | 0.27% | 21.47% | ||
Teradata Corp | 18.92 | 15.61 | 1.23 | 19.38% | -10.5% | ||
Rapid7 Inc | 66.97 | 96.76 | 2.01 | -25.97% | 5.36% | ||
Average | 73.47 | 21.75 | 7.53 | 7.41% | 10.53% |
After examining
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A Price to Earnings ratio of 30.52 significantly below the industry average by 0.42x suggests undervaluation. This can make the stock appealing for those seeking growth.
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Considering a Price to Book ratio of 9.3, which is well below the industry average by 0.43x, the stock may be undervalued based on its book value compared to its peers.
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With a relatively high Price to Sales ratio of 10.81, which is 1.44x the industry average, the stock might be considered overvalued based on sales performance.
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The Return on Equity (ROE) of 8.17% is 0.76% above the industry average, highlighting efficient use of equity to generate profits.
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The company exhibits higher Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of
$36.79 Billion , which is 56.6x above the industry average, implying stronger profitability and robust cash flow generation. -
With higher gross profit of
$47.83 Billion , which indicates 35.17x above the industry average, the company demonstrates stronger profitability and higher earnings from its core operations. -
The company's revenue growth of 12.27% exceeds the industry average of 10.53%, indicating strong sales performance and market outperformance.
Debt To Equity Ratio
The debt-to-equity (D/E) ratio measures the financial leverage of a company by evaluating its debt relative to its equity.
Considering the debt-to-equity ratio in industry comparisons allows for a concise evaluation of a company's financial health and risk profile, aiding in informed decision-making.
By considering the Debt-to-Equity ratio,
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In terms of the debt-to-equity ratio,
Microsoft ( MSFT ) has a lower level of debt compared to its top 4 peers, indicating a stronger financial position. -
This implies that the company relies less on debt financing and has a more favorable balance between debt and equity with a lower debt-to-equity ratio of 0.21.
Key Takeaways
For
This article was generated by Benzinga's automated content engine and reviewed by an editor.

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