Income Statement Flow (TTM) | Source: Yahoo Finance
Source: Cash Flow Statement | LFCF = Operating Cash Flow - CapEx - Interest Expense
Fair Value: $1205.82
+763.4% Upside
Stock appears undervalued with 763.4% upside to fair value. High confidence based on valuation spread and data quality.
Strategy Inc (MSTR) currently trades at $139.66, representing a 763.4% discount to our calculated fair value of $1205.82.
Key Strengths: High profit margins (1667.1%).
Key Risks: Weak interest coverage (-0.6x); Elevated short interest (11.7% of float).
Wall Street consensus is strong_buy with a mean price target of $474.31.
| Criterion | Status | Notes |
|---|---|---|
| ≤4 operating segments | PASS | Segment count estimated from sector classification. Verify in 10-K for accuracy. |
| Top 2 segments ≥70% of revenue | PASS | Revenue concentration estimated. Verify segment breakdown in 10-K. |
| ≤3 material geographic regions | PASS | Most US-listed companies report US vs International (2 regions). |
| No exotic debt instruments or off-balance-sheet complexity | PASS | Review 10-K for convertibles, derivatives, and off-balance-sheet items. |
Recommendation: PROCEED TO VALUATION
Strategy Inc, together with its subsidiaries, operates as a bitcoin treasury company in the United States, Europe, the Middle East, Africa, and internationally. The company offers investors varying degrees of economic exposure to Bitcoin by offering a range of securities, including equity and fixed income instruments. It also provides AI-powered enterprise analytics software, including Strategy One, which provides non-technical users with the ability to directly access novel and actionable insights for decision-making; and Strategy Mosaic, a universal intelligence layer that offers enterprises with consistent definitions and governance across data sources, regardless of where that data resides or which tools access it. The company was formerly known as MicroStrategy Incorporated and changed its name to Strategy Inc in August 2025. The company was incorporated in 1989 and is headquartered in Tysons Corner, Virginia.
| Market Capitalization | $40.41B |
| (+) Total Debt | $8.22B |
| (-) Cash & Equivalents | $0.05B |
| Net Debt | $8.17B |
| Enterprise Value | $48.58B |
| Metric | Value | What It Means |
|---|---|---|
| Net Debt / EBITDA | N/A | N/A |
| Interest Coverage | -0.6x | Weak - Concern |
| Debt / Equity | 14.1% | Conservative |
| Current Ratio | 0.66 | Review - may struggle with short-term obligations |
Overall: Balance sheet is adequate with some areas to monitor.
Industry: Software - Application | Data: TTM (Trailing 12 Months) as of 2026-02-02 | Source: Yahoo Finance
| Company | Market Cap | P/E | Forward P/E | EV/EBITDA | Profit Margin |
|---|---|---|---|---|---|
| INTU | $135.6B | 33.4x | 18.4x | 0.0x | 21.2% |
| ADBE | $122.8B | 17.6x | 11.1x | 13.0x | 30.0% |
| SNPS | $87.6B | 56.6x | 27.1x | 75.5x | 18.9% |
| CDNS | $78.8B | 74.5x | 35.9x | 42.6x | 20.4% |
| MSTR (Target) | $40.4B | 5.7x | 2.8x | -55.1x | 1667.1% |
| ANSS | N/A | 0.0x | 0.0x | 0.0x | 0.0% |
| Peer Average (excl. target) | - | 45.0x | 22.8x | 42.6x | 20.4% |
| Method | Inputs | Fair Value |
|---|---|---|
| Equity (TTM EPS) | EPS: $24.36 x 49.5x P/E | $1205.82 |
| Equity (Forward EPS) | EPS: $49.07 x 49.5x P/E | $2428.73 |
| EV-Based (EBITDA) | EBITDA: $-0.02B x 46.9x | $-33.12 |
| Headline Fair Value | Median value used (spread 205.1% exceeds 15% threshold) | $1205.82 |
Assessment: Mixed profile. Balanced positive and negative factors.
MSTR trades at 5.7x TTM P/E and 2.8x Forward P/E. This compares to peer averages of 45.0x TTM and 22.8x Forward P/E. Note: The significant gap between TTM and Forward P/E suggests analysts expect substantial earnings improvement.
Warning: Negative levered free cash flow indicates the company is consuming cash.
13 analysts cover this stock with a consensus strong_buy rating. Price targets range from $213 to $705, with a mean of $474.
16.38 - Neutral/Low Fear
Score: 61/100
143.65
SPY YTD: 17.7% | RSP YTD: 12.3%
No customer/supplier data available for this company. Data is curated from SEC 10-K filings for major tech companies.
Track Record: 2 beats, 6 misses, 0 in-line out of 8 quarters | 25% Beat Rate
| Date | EPS Estimate | EPS Actual | Result | Surprise % |
|---|---|---|---|---|
| 2025-10-30 | $9.67 | $8.42 | MISS | -12.9% |
| 2025-07-31 | $6.76 | $32.60 | BEAT | 382.5% |
| 2025-05-01 | $-0.02 | $-16.53 | MISS | -70753.0% |
| 2025-02-05 | $-0.08 | $-3.03 | MISS | -3507.1% |
| 2024-10-30 | $-0.02 | $-1.56 | MISS | -9354.5% |
| 2024-08-01 | $-0.02 | $-0.76 | MISS | -3444.2% |
| 2024-04-29 | $-0.08 | $-0.31 | MISS | -306.6% |
| 2024-02-06 | $0.02 | $0.56 | BEAT | 2534.8% |
All financial data sourced from:
Click any blue number throughout the report to view its source.
This analysis is generated automatically using publicly available data and should not be considered as financial advice. All figures are sourced from Yahoo Finance and may contain inaccuracies. Always verify data with primary sources (SEC filings, company IR) before making investment decisions.
Past performance does not guarantee future results. Investing involves risk, including the possible loss of principal.
Levered FCF is cash that can't be faked. Unlike earnings which can be manipulated through accounting (depreciation schedules, revenue recognition, etc.), cash flow is simple: the money is either in the bank or it's not.
This metric shows how much actual cash the company generates after paying for:
A company with strong Levered FCF can pay dividends, buy back shares, pay down debt, or invest in growth - all from real cash, not accounting profits.
Customers and suppliers report earnings BEFORE the company you're analyzing. Their results give you early signals about demand and supply chain health.
Customer Example: If Microsoft (AMD customer) beats revenue estimates by 20%, it likely means they bought more chips than analysts expected. This is bullish for AMD's upcoming earnings.
Supplier Example: If TSMC (AMD supplier) reports strong demand from AMD, that confirms AMD's production is ramping up.
By the time AMD reports, you already have data points from 5+ related companies. Smart analysts piece these together to predict earnings before they're announced.
Not all revenue is equal. Different business segments have different growth rates and profit margins.
For example, AMD's Data Center segment has ~40% margins while Gaming might be ~15%. A shift toward Data Center means higher overall profitability even if total revenue stays flat.
Watch for: