MSFT vs NOW: Which Is the Better Buy?
Side-by-side comparison of Microsoft Corporation and ServiceNow, Inc. — fair value, conviction, valuation metrics, and QuantHub research signals.
Updated 2026-07-18.
Microsoft Corporation · Technology
$379.40
+45.0% upside to fair value
Grade A
High Quality
VS
ServiceNow, Inc. · Technology
$103.24
+45.0% upside to fair value
Grade B
High Quality
QuantHub Verdict
MSFT trades at a lower forward P/E
(22.5x).
These are model outputs — not personalized investment advice.
See all research →
Valuation & Fundamentals
| Metric |
MSFT |
NOW |
| Current Price |
$379.40 |
$103.24 |
| Fair Value Estimate |
$550.13 |
$149.70 |
| Upside to Fair Value |
+45.0%
|
+45.0%
|
| Market Cap |
$2,818.3B |
$106.5B |
| Forward P/E |
22.5x
|
61.1x
|
| EV / EBITDA |
14.2x
|
32.9x
|
| Price / Sales |
8.9x
|
7.6x
|
| Price / FCF |
38.6x
|
23.0x
|
| Revenue Growth YoY |
+18.3%
|
+22.1%
|
| Gross Margin |
68.3%
|
76.6%
|
| Operating Margin |
46.8%
|
13.4%
|
| Return on Equity |
33.1%
|
15.0%
|
| Dividend Yield |
0% |
0% |
| FCF Yield |
2.59%
|
4.35%
|
| Analyst Consensus |
Strong Buy
|
Strong Buy
|
Investment Thesis
Microsoft Corporation is a leading global technology company specializing in cloud computing, productivity software, and enterprise platforms. The company benefits from a very strong and widening competitive moat supported by scale, switching costs, an integrated ecosystem, and disciplined capital allocation including large buybacks and dividends. Its business quality is high, demonstrated by a 3…
ServiceNow, Inc. operates in the technology sector specializing in software applications, delivering high-quality enterprise cloud solutions with a durable competitive moat evidenced by a 15% return on equity and strong gross margins of 76.6%. The company is currently in an investing growth phase with 22.1% revenue growth in the most recent quarter, although earnings growth is modest at 2.0%. Des…
Accumulation Zones
| Metric |
MSFT |
NOW |
| Zone Low |
$412.60 |
$112.27 |
| Zone High |
$467.61 |
$127.24 |
| In Buy Zone? |
Yes
|
Yes
|