The digital economy is now the driving force behind global economic expansion. In 2014, Microsoft underwent a digital transformation, and its valuation soared. This essay aims to investigate how the digital revolution affects business valuation. This paper applies research in asset valuation, investment and financing strategies, and risk management to qualitatively analyze Microsoft through the SWOT analysis method. Advanced technology and corporate innovation can raise valuation expectations, while technological risks and business homogenization can impact market competition and lower company valuation. Microsoft's advancement in digitalization can not only improve the company's competitiveness, but also enhance its value and promote high-quality development. As a result, firms need to effectively manage technology risks and data security issues, control costs, or improve service quality to remain competitive in the marketplace and increase the firm's valuation, thereby maintaining its market position and overall value. In this and other contexts, factors affecting valuation are subsequently discussed.