The software giant looks expensive on the surface, but a patient investor is effectively buying its future growth at a significant discount.

At a glance, Microsoft (MSFT) stock can seem pricey. Trading at about 23.9 times the last twelve months of reported earnings, it carries the kind of premium that makes many investors pause. But that number is a snapshot of the past, not a map of the future. If you look two years out, at the earnings analysts expect the company to generate by 2028, that same share price costs only about 17.6 times those earnings.

The Patience Premium

This is the forward valuation discount in action. As earnings grow into the price, the multiple you pay effectively falls on its own. For…