u/helixinverse

MSFT's forward P/E (22.38x) and EV/Sales (9.42x) multiples have compressed to their most attractive levels in six years, down from a peak forward P/E of over 35x in 2023. This re-rating provides a rare opportunity to buy a high-quality, durable business with significant AI growth drivers at a fair valuation, which has not been possible for several years. The current price of $400 offers a reasonable margin of safety for long-term investors, given the company's strong fundamentals, including a $625B+ backlog and over $70B in annual free cash flow. The market may continue to de-rate the stock due to slowing growth, competitive pressures in AI, or skepticism about the sustainability of its backlog (as noted in comments). A recent 20% dip after similar sentiment highlights volatility risk.