Apple or Microsoft: which stock is cheaper in 2026?
As of October 5, 2026, Apple (AAPL) trades at 38.2× earnings (P/E) and Microsoft (MSFT) at 28.8×, according to Kaplio. The median across the 250 technology companies above $2bn in Kaplio's universe is 35.1×. Kaplio's verdict: Apple, expensive; Microsoft, cheap. Value range by multiples: $249–$306 for Apple and $628–$631 for Microsoft. Against its own value range, Microsoft is the cheaper of the two today.
According to the Kaplio Summary
The same verdict as each company's page: price range by multiples, the four lights, the expected return if consensus is right and what Buffett and Lynch would say today.
| Apple (AAPL) | Microsoft (MSFT) | |
|---|---|---|
| Summary valuation | expensive ($249–$306) | cheap ($628–$631) |
| The four lights | Valuation: P/E 38.2× (expensive) Business: ROIC 52 % (excellent) Balance sheet: Net debt/EBITDA 0.5× (solid) Results: 8 of 8 (on track) | Valuation: P/E 28.8× (cheap) Business: ROIC 21 % (solid) Balance sheet: Net debt/EBITDA 0.5× (solid) Results: 8 of 8 (on track) |
| Expected return (per year) | +1.8 % a year (to 2029) | +17.6 % a year (to 2029) |
| Buffett method | quality 94 · would wait | quality 97 · would wait |
| Lynch method | stalwart · would wait | stalwart · would wait |
Metrics side by side
| Metric | Apple (AAPL) | Microsoft (MSFT) |
|---|---|---|
| Overview | ||
| Market Cap | $4.9T | $3.8T |
| Price | $333.69 | $517.53 |
| Valuation | ||
| P/E | 38.2× | 28.8× |
| P/B | 45.6× | 8.7× |
| P/S | 10.5× | 11.6× |
| EV/EBITDA | 29.3× | 19.0× |
| FCF Yield | 2.8 % | 1.7 % |
| Dividend Yield | 0.3 % | 0.7 % |
| Profitability | ||
| ROIC | 52.0 % | 21.0 % |
| ROE | 137.2 % | 33.2 % |
| Gross Margin | 48.7 % | 67.9 % |
| Operating Margin | 33.2 % | 46.8 % |
| Net Margin | 27.6 % | 40.3 % |
| Growth | ||
| Revenue 5Y CAGR | 8.7 % | 14.6 % |
| EPS 5Y CAGR | 17.7 % | 17.3 % |
| FCF 5Y CAGR | 6.1 % | 3.6 % |
| Balance Sheet | ||
| Net Debt / EBITDA | 0.5× | 0.5× |
| Debt / Equity | 0.8× | 0.3× |
Trailing twelve months where available; otherwise the latest fiscal year. Growth: five-year compound annual rate.