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Microsoft Corporation (MSFT) vs W. R. Berkley Corporation (WRB): Which Is the Better Buy in 2026?

As of 2026-11-01, MSFT is undervalued at $522, with a DCF intrinsic value of $802 and a margin of safety of 35%. WRB is fairly valued at $74, with an intrinsic value of $76 and a margin of safety of 2%. Of the two, MSFT has the wider margin of safety.

MSFT
Microsoft Corporation
$521.91
VS
WRB
W. R. Berkley Corporation
$73.86

Rewards

MSFT
  • ★Microsoft Corporation has maintained ROIC above 15% for 4 consecutive years, indicating a durable competitive advantage.
  • ★Gross margin of 67.7% indicates strong pricing power — typical of businesses with significant intellectual property or brand strength.
  • ★Microsoft Corporation scores 84/100 on the Economic Moat Score (Wide Moat), with revenue predictability as the strongest competitive dimension.
WRB
  • ★W. R. Berkley Corporation scores 99/100 on the Economic Moat Score (Wide Moat), with revenue predictability as the strongest competitive dimension.
  • ★Free cash flow has grown at a 10.7% CAGR over the past 4 years, demonstrating strong earnings power growth.
  • ★Each dollar of retained earnings has created $1.38 of earning power — management is creating shareholder value.

Risks

MSFT
  • ⚠FCF yield of 1.7% is below 3%, meaning the market is pricing in substantial future growth to justify the current price.
  • ⚠5 insider sales totaling $75.4M with no purchases in the past 3 months — insiders are reducing their exposure.
WRB
  • ⚠PEG ratio of 4.86 indicates the stock is expensive relative to its expected growth — the market may be pricing in more growth than analysts project.
  • ⚠Altman Z-Score of 1.22 places the company in the distress zone — financial patterns resemble those of companies that experienced bankruptcy.

Key Valuation Metrics

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MSFT
WRB
Valuation
$66.99B
Free Cash Flow
N/A
1.73%
FCF Yield
N/A
27.24
Trailing P/E
15.62
21.62
Forward P/E
15.22
Quality & Moat
22.53%
ROIC
14.58%
34.22%
ROE
18.08%
67.66%
Gross Margin
43.60%
1.69
PEG Ratio
4.86
Balance Sheet Safety
0.15
Net Debt / Equity
Net cash
N/A
Interest Coverage
N/A
0.34
Net Debt / EBITDA
-0.32
0.75%
Dividend Yield
0.54%
MSFT: 5Ties: 1WRB: 4
MSFTWRB

Historical Fundamentals

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MSFT

Price ÷ Earnings Per Share — how many years of current earnings you're paying for at today's price. Lower P/E may indicate undervaluation. The dashed forward point is the forward P/E — today's price ÷ analyst consensus EPS.

WRB

Price ÷ Earnings Per Share — how many years of current earnings you're paying for at today's price. Lower P/E may indicate undervaluation. The dashed forward point is the forward P/E — today's price ÷ analyst consensus EPS.

Price ÷ Earnings Per Share — how many years of current earnings you're paying for at today's price. Lower P/E may indicate undervaluation. The dashed forward point is the forward P/E — today's price ÷ analyst consensus EPS.

$1 Retained Earnings Test

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MSFT
$4.30
created per $1 retained over 3 years
Exceptional Value Creator
Σ Retained
$251.42B
Δ Market Cap
+$1.08T
Buffett's "$1 Test": For every $1 of earnings retained, has management created at least $1 of market value?
> $1 created per $1 retained = Value Creator · < $1 created = Value Destroyer
WRB
$2.28
created per $1 retained over 3 years
Exceptional Value Creator
Σ Retained
$3.18B
Δ Market Cap
+$7.25B
Buffett's "$1 Test": For every $1 of earnings retained, has management created at least $1 of market value?
> $1 created per $1 retained = Value Creator · < $1 created = Value Destroyer

Buffett's "$1 Test": For every $1 of earnings retained, has management created at least $1 of market value?
> $1 created per $1 retained = Value Creator · < $1 created = Value Destroyer

Discounted Cash Flow (DCF) Analysis

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MSFT
34.9% Margin of Safety
Price is 34.9% below estimated fair value
Current Price: $521.91
Fair Value: $801.72
Strongly undervalued
Undervalued
Fairly valued
Overvalued
Strongly overvalued
WRB
2.2% Margin of Safety
Price is 2.2% below estimated fair value
Current Price: $73.86
Fair Value: $75.52
Strongly undervalued
Undervalued
Fairly valued
Overvalued
Strongly overvalued

Reverse DCF — Market-Implied Growth

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MSFT

What growth rate is the market pricing in at $522?

+13.0%
Market-Implied Owner Earnings Growth
Standard FCF implies +22.5%

The market implies +13.0% Owner Earnings growth, below historical trends — potential opportunity.

Standard FCF implies a more demanding +22.5%, reflecting heavy growth investment expected to generate future returns.

WRB

Requires positive FCF to compute implied growth rate.

Economic Moat Score

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MSFT
84/100
Wide Moat
70+ Wide · 40-69 Narrow · <40 None

Wide moat driven primarily by revenue predictability. Reinvestment Efficiency is the area most vulnerable to competitive pressure.

Composite score measuring competitive advantage durability across four dimensions: returns above cost of capital, pricing power stability, revenue predictability, and capital efficiency. Based on 4 years of fundamental data.
WRB
99/100
Wide Moat
70+ Wide · 40-69 Narrow · <40 None

Wide moat driven primarily by revenue predictability. Margin Stability is the area most vulnerable to competitive pressure.

Composite score measuring competitive advantage durability across four dimensions: returns above cost of capital, pricing power stability, revenue predictability, and capital efficiency. Based on 4 years of fundamental data.

Forensic Accounting

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MSFT
-2.58
Unlikely Manipulator
Above -1.78 = likely manipulator · -2.22 to -1.78 = grey zone

M-Score Trend

Beneish's 8-variable model estimates the probability of earnings manipulation. An M-Score above -1.78 signals elevated risk — companies in this range have historically been 3-5× more likely to be manipulating earnings. Scores between -2.22 and -1.78 fall in a grey zone warranting further investigation.
WRB
-2.63
Unlikely Manipulator
Above -1.78 = likely manipulator · -2.22 to -1.78 = grey zone

M-Score Trend

Beneish's 8-variable model estimates the probability of earnings manipulation. An M-Score above -1.78 signals elevated risk — companies in this range have historically been 3-5× more likely to be manipulating earnings. Scores between -2.22 and -1.78 fall in a grey zone warranting further investigation.

Beneish's 8-variable model estimates the probability of earnings manipulation. An M-Score above -1.78 signals elevated risk — companies in this range have historically been 3-5× more likely to be manipulating earnings. Scores between -2.22 and -1.78 fall in a grey zone warranting further investigation.

Ownership Breakdown

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MSFT
Insiders 0.1%Institutions 75.8%Retail & Other 24.1%
No. of Institutional Holders8,181
High insider ownership aligns management incentives with shareholders — a key signal in Buffett-style analysis. Institutional concentration can indicate smart-money conviction but also crowding risk.
WRB
Insiders 26.3%Institutions 75.6%
No. of Institutional Holders1,296
High insider ownership aligns management incentives with shareholders — a key signal in Buffett-style analysis. Institutional concentration can indicate smart-money conviction but also crowding risk.

High insider ownership aligns management incentives with shareholders. Institutional concentration can indicate smart-money conviction but also crowding risk.

Insider Buying Activity

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MSFT
0
Buys (3M)
1
Buys (12M)
Total value (12M): $1.99M
STANTON JOHN W.
Director
$1.99M
@ $397.35 · 2026-02-18
SMITH BRADFORD LEE
President
$1.45M
@ $377.47 · 2025-04-23
Open market purchases · includes direct & indirect ownership · excludes option exercises
WRB
0
Buys (3M)
19
Buys (12M)
Total value (12M): $665.29M
MITSUI SUMITOMO INSURANCE CO., LTD.
Beneficial Owner of more than 10% of a Class of Security
$18.75M
@ $72.61 · 2026-03-03
MITSUI SUMITOMO INSURANCE CO., LTD.
Beneficial Owner of more than 10% of a Class of Security
$21.49M
@ $71.65 · 2026-02-27
MITSUI SUMITOMO INSURANCE CO., LTD.
Beneficial Owner of more than 10% of a Class of Security
$39.38M
@ $71.13 · 2026-02-25
MITSUI SUMITOMO INSURANCE CO., LTD.
Beneficial Owner of more than 10% of a Class of Security
$35.74M
@ $70.70 · 2026-02-20
MITSUI SUMITOMO INSURANCE CO., LTD.
Beneficial Owner of more than 10% of a Class of Security
$2.84M
@ $70.93 · 2026-02-13
MITSUI SUMITOMO INSURANCE CO., LTD.
Beneficial Owner of more than 10% of a Class of Security
$6.83M
@ $69.68 · 2026-02-11
MITSUI SUMITOMO INSURANCE CO., LTD.
Beneficial Owner of more than 10% of a Class of Security
$2.84M
@ $70.88 · 2026-02-06
MITSUI SUMITOMO INSURANCE CO., LTD.
Beneficial Owner of more than 10% of a Class of Security
$21.45M
@ $68.05 · 2026-02-04
MITSUI SUMITOMO INSURANCE CO., LTD.
Beneficial Owner of more than 10% of a Class of Security
$33.09M
@ $68.22 · 2026-01-30
MITSUI SUMITOMO INSURANCE CO., LTD.
Beneficial Owner of more than 10% of a Class of Security
$69.30M
@ $67.35 · 2026-01-28
MITSUI SUMITOMO INSURANCE CO., LTD.
Beneficial Owner of more than 10% of a Class of Security
$46.90M
@ $67.19 · 2026-01-23
MITSUI SUMITOMO INSURANCE CO., LTD.
Beneficial Owner of more than 10% of a Class of Security
$42.61M
@ $67.64 · 2026-01-21
MITSUI SUMITOMO INSURANCE CO., LTD.
Beneficial Owner of more than 10% of a Class of Security
$36.64M
@ $68.49 · 2026-01-16
MITSUI SUMITOMO INSURANCE CO., LTD.
Beneficial Owner of more than 10% of a Class of Security
$55.62M
@ $68.58 · 2026-01-14
MITSUI SUMITOMO INSURANCE CO., LTD.
Beneficial Owner of more than 10% of a Class of Security
$32.64M
@ $69.45 · 2026-01-09
MITSUI SUMITOMO INSURANCE CO., LTD.
Beneficial Owner of more than 10% of a Class of Security
$47.42M
@ $69.61 · 2026-01-07
MITSUI SUMITOMO INSURANCE CO., LTD.
Beneficial Owner of more than 10% of a Class of Security
$47.17M
@ $70.11 · 2026-01-02
MITSUI SUMITOMO INSURANCE CO., LTD.
Beneficial Owner of more than 10% of a Class of Security
$62.04M
@ $70.53 · 2025-12-29
MITSUI SUMITOMO INSURANCE CO., LTD.
Beneficial Owner of more than 10% of a Class of Security
$42.55M
@ $69.71 · 2025-12-22
Open market purchases · includes direct & indirect ownership · excludes option exercises

Open market purchases · includes direct & indirect ownership · excludes option exercises.

Insider Selling Activity

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MSFT
5
Sells (3M)
13
Sells (12M)
Total value (12M): $118.56M
HOOD AMY E
Chief Financial Officer
$3.98M
@ $545.42 · 2026-10-13
HOOD AMY E
Chief Financial Officer
$20.76M
@ $498.27 · 2026-09-14
NADELLA SATYA
Chief Executive Officer
$43.39M
@ $501.46 · 2026-09-01
ALTHOFF JUDSON
Officer
$4.88M
@ $487.89 · 2026-08-05
NUMOTO TAKESHI
Officer
$2.39M
@ $496.52 · 2026-08-04
NUMOTO TAKESHI
Officer
$1.81M
@ $402.84 · 2026-06-10
NUMOTO TAKESHI
Officer
$1.03M
@ $412.45 · 2026-06-08
ALTHOFF JUDSON
Officer
$7.15M
@ $460.99 · 2026-06-01
COLEMAN AMY
Officer
$519,242
@ $411.44 · 2026-05-14
HOGAN KATHLEEN T
Officer
$5.05M
@ $409.55 · 2026-03-06
NUMOTO TAKESHI
Officer
$1.36M
@ $478.72 · 2025-12-04
ALTHOFF JUDSON
Officer
$6.27M
@ $491.52 · 2025-12-02
SMITH BRADFORD LEE
President
$19.97M
@ $518.64 · 2025-11-03
NADELLA SATYA
Chief Executive Officer
$75.32M
@ $504.78 · 2025-09-03
NUMOTO TAKESHI
Officer
$2.56M
@ $527.32 · 2025-08-12
NUMOTO TAKESHI
Officer
$1.39M
@ $463.00 · 2025-06-03
NUMOTO TAKESHI
Officer
$460,008
@ $460.01 · 2025-05-30
HOGAN KATHLEEN T
Officer
$9.76M
@ $453.77 · 2025-05-21
ALTHOFF JUDSON
Officer
$7.33M
@ $458.18 · 2025-05-19
COLEMAN AMY
Officer
$5.99M
@ $452.04 · 2025-05-15
SMITH BRADFORD LEE
President
$1.68M
@ $438.44 · 2025-05-05
SMITH BRADFORD LEE
President
$35.30M
@ $435.84 · 2025-05-05
NUMOTO TAKESHI
Officer
$1.12M
@ $447.41 · 2024-12-09
NUMOTO TAKESHI
Officer
$874,634
@ $437.32 · 2024-12-04
NUMOTO TAKESHI
Officer
$1.50M
@ $428.76 · 2024-12-02
ALTHOFF JUDSON
Officer
$10.43M
@ $417.00 · 2024-11-22
NUMOTO TAKESHI
Officer
$414,720
@ $414.72 · 2024-11-22
YOUNG CHRISTOPHER DAVID
Officer
$3.05M
@ $423.66 · 2024-11-12
Direct ownership only · excludes indirect, option exercises, planned (10b5-1) sales & derivatives
WRB
0
Sells (3M)
0
Sells (12M)
No open market insider sales found.
Direct ownership only · excludes indirect, option exercises, planned (10b5-1) sales & derivatives

Direct ownership only · excludes indirect, option exercises, planned (10b5-1) sales & derivatives.

🎭 Mr. Market's Mood

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MSFT
FearGreed
😐Neutral(60/100)

"Market is pricing this stock without strong emotion in either direction"

Composite sentiment score based on 6 market signals. Inspired by Buffett's "Mr. Market" allegory — fear = potential opportunity, greed = potential risk. Must be used alongside fundamental analysis, not in isolation.
WRB
FearGreed
😏Greed(62/100)

"Market is optimistic — be cautious and ensure you have a margin of safety"

Composite sentiment score based on 6 market signals. Inspired by Buffett's "Mr. Market" allegory — fear = potential opportunity, greed = potential risk. Must be used alongside fundamental analysis, not in isolation.

Composite sentiment score based on market signals. Inspired by Buffett’s "Mr. Market" allegory — fear = potential opportunity, greed = potential risk. Must be used alongside fundamental analysis, not in isolation.

⚖️ Buffett Signal

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MSFT
⚪Awaiting DCF Data

The Buffett Signal cross-references market sentiment with DCF valuation. Configure the DCF Analysis above to generate a signal.

DCF Margin of Safety: N/AMr. Market's Mood: Neutral (60)
WRB
⚪Awaiting DCF Data

The Buffett Signal cross-references market sentiment with DCF valuation. Configure the DCF Analysis above to generate a signal.

DCF Margin of Safety: N/AMr. Market's Mood: Greed (62)
View MSFT Full AnalysisView WRB Full Analysis

Frequently Asked Questions: MSFT vs WRB

Is Microsoft Corporation or W. R. Berkley Corporation more undervalued in 2026?▼

Based on our discounted cash flow model, MSFT trades at a 34.9% margin of safety (intrinsic value $802 vs. price $522), compared to WRB's 2.2% margin of safety (intrinsic $76 vs. $74).

Which stock has a wider economic moat, Microsoft Corporation or W. R. Berkley Corporation?▼

WRB scores 99/100 (Wide moat), while MSFT scores 84/100 (Wide moat). The moat score measures competitive advantage durability across ROIC consistency, margin stability, revenue predictability, and reinvestment efficiency.

Is W. R. Berkley Corporation in financial distress?▼

WRB's Altman Z-Score of 1.2 places it in the Distress zone, signaling elevated bankruptcy risk. MSFT scores 9.1 (Safe zone). The Altman Z-Score is a five-factor model that predicts insolvency within two years; scores below 1.81 indicate significant distress.

Which stock has higher return on invested capital, Microsoft Corporation or W. R. Berkley Corporation?▼

MSFT earns 22.5% ROIC versus WRB's 14.6%. A higher ROIC means the company generates more profit per dollar of capital employed, a hallmark of durable competitive advantage in Buffett-style analysis.

Which dividend is safer, Microsoft Corporation's or W. R. Berkley Corporation's?▼

WRB's dividend earns a safety score of 94/100 (Very Safe), compared to MSFT's 94/100 (Very Safe). WRB has raised its dividend for 3 consecutive years.

MSFT vs WRB: Which Is the Better Buy in 2026? | SafetyMargin.io