A Simply Wall St. analysis, published January 19, 2026, examined MicroStrategy’s valuation. The company operates as both a bitcoin proxy and an AI-powered analytics software firm. The assessment focused on MicroStrategy’s low price-to-earnings (P/E) ratio of 7x.
This P/E ratio sits significantly below the US Software industry average of 31.6x. The stock has shown mixed recent performance, posting a 7-day gain of 10.41%. Conversely, it recorded a 90-day decline of 41.43%.
The low valuation raises a key question: Is MicroStrategy currently undervalued? Alternatively, the market may have already factored in future growth prospects. This assessment must also weigh the inherent risks tied to the company’s substantial bitcoin holdings.
The analysis points out long-term volatility, despite the company delivering a significant 3-year shareholder return.