Microsoft (MSFT +0.48%) has had a terrible start to 2026. It’s down more than 20% to start, but it’s also off more than 30% from its all-time high. That’s not a normal experience for Microsoft, as it has been down 30% or more from an all-time high only once in the past decade.

There has seldom been a better time to scoop up Microsoft shares, and I think its stock price will be much higher in 2027. How much higher? Let’s take a look.

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Microsoft’s stock is set to deliver strong returns based on valuation alone

If Microsoft was overvalued when its sell-off began, then this drop is warranted, and it isn’t the buying opportunity many investors have made it out to be. Since 2020, Microsoft has traded at an…