Microsoft (MSFT) — segment sum-of-the-parts on FY2027E NOPAT, lease- and build-adjusted

Microsoft Corporation (MSFT)
By@anthropopithecus
Assumptions as of 2026-07-30
USD
Updated Jul 30, 2026 · Revised 1 time
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Microsoft (MSFT) — segment sum-of-the-parts on FY2027E NOPAT, lease- and build-adjusted

as of 2026-07-30

Fair value per share
$396.02
Upside vs market
-12.2%
Intelligent Cloud EV ($M)
1,386,288
Productivity & Business Processes EV ($M)
1,505,237
FY2027E total revenue ($M)
387,570
440,000$M
31.0%
-7.0%
12.0%
40.0%
24.0
25.0%
135,000$M
26.0%
10.0
60.0%
20.0
$451.10
7,443M
20.0%
15.0%

Sum-of-the-parts bridge ($M)

FY2027E
Productivity & Business Processes revenue156,796
Intelligent Cloud revenue180,506
More Personal Computing revenue50,268
= FY2027E total revenue387,570
Total revenue growth16.8%
PBP NOPAT75,262
x PBP multiple = PBP EV1,505,237
Intelligent Cloud NOPAT57,762
x Cloud multiple = Cloud EV1,386,288
MPC NOPAT10,456
x MPC multiple = MPC EV104,558
= Operating enterprise value2,996,083
Growth capex FY27+FY28 above D&A305,000
- AI build write-off45,750
+ Equity and other investments (post-haircut)27,261
- Net debt incl. finance leases30,045
Memo: operating lease liabilities (excluded)21,925
= Equity value2,947,549
Market cap for comparison3,357,537

Sources

  1. — modeledge.ai
  2. — modeledge.ai
  3. — modeledge.ai

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