Question 1

What is Microsoft's P/FCF ratio?

Accepted Answer

Microsoft (MSFT) P/FCF ratio is 39.9× as of July 22, 2026. The ratio is calculated by dividing market capitalisation by trailing twelve-month free cash flow, using USD-normalised financials (IAS 21 exchange-rate translation for non-USD reporters).

Question 2

How is the P/FCF ratio calculated?

Accepted Answer

P/FCF = Market Capitalisation ÷ Trailing Twelve-Month (TTM) Free Cash Flow, where Free Cash Flow = Operating Cash Flow − Capital Expenditures. All inputs are sourced from audited GAAP/IFRS filings and translated to USD using period-end exchange rates so the multiple is comparable across companies and currencies.

Question 3

What is the P/FCF ratio?

Accepted Answer

The price-to-free-cash-flow (P/FCF) ratio compares a company's market capitalisation to its trailing twelve-month (TTM) free cash flow. It is calculated as market cap ÷ TTM free cash flow, where free cash flow = operating cash flow − capital expenditures. Because FCF cannot be inflated by non-cash accounting items, P/FCF is often considered a cleaner measure of "earnings-power valuation" than P/E — especially for capital-intensive businesses where depreciation diverges from real cash outflows.

Question 4

What is a good P/FCF ratio for Microsoft?

Accepted Answer

Mature companies that consistently convert profit into cash often trade at 15–25× P/FCF; capital-intensive businesses with lumpy capex typically trade lower. Compare against sector peers and against the company's own multi-year average — single-year P/FCF can be distorted by working-capital swings. For Microsoft specifically, the relevant sector benchmark is the current sector median of 21.8×.

Question 5

Is Microsoft's P/FCF ratio high or low?

Accepted Answer

Microsoft's P/FCF ratio of 39.9× is below its own 5-year average of 40.0× and above the sector median of 21.8×. That places the current reading at the 36th percentile of its 10-year history. A higher multiple usually reflects stronger expected growth, lower perceived risk, or higher returns on capital; a lower multiple reflects the opposite.

Question 6

What is Microsoft's historical P/FCF ratio range?

Accepted Answer

In the available daily series, Microsoft (MSFT) P/FCF ratio has ranged from a low of 8.1× in 2012 to a high of 56.5× in 2025. The 5-year average is 40.0× and the 5-year median is 40.8×.

Question 7

What was Microsoft's P/FCF ratio in 2025?

Accepted Answer

Microsoft (MSFT) P/FCF ratio at the end of 2025 was 51.6×. Annual values reflect the multiple on the last trading day of each calendar year, using the trailing twelve-month free cash flow figure available at that date.

Question 8

Why does Microsoft's P/FCF ratio change over time?

Accepted Answer

Valuation multiples move with two inputs: the numerator (market capitalisation, which tracks the share price) and the denominator (free cash flow). Share-price changes — driven by interest rates, earnings expectations, risk appetite, and broader market sentiment — typically dominate short-term moves, while changes in the underlying fundamental drive the longer-term trend. As a result, the ratio can rise during stock-price rallies even if the business itself has not become more valuable, and fall during sell-offs even when fundamentals are improving.


2025	$3.7T	$71.6B	51.6×	+5.8×	Jun 30, 2025
2024	$3.39T	$74.1B	45.8×	+3.3×	Jun 30, 2024
2023	$2.53T	$59.5B	42.6×	+13.1×	Jun 30, 2023
2022	$1.92T	$65.1B	29.5×	-6.9×	Jun 30, 2022
2021	$2.04T	$56.1B	36.3×	+2.2×	Jun 30, 2021
2020	$1.54T	$45.2B	34.1×	+7.0×	Jun 30, 2020
2019	$1.04T	$38.3B	27.1×	+3.7×	Jun 30, 2019
2018	$758B	$32.3B	23.5×	+6.5×	Jun 30, 2018
2017	$534B	$31.4B	17.0×	+1.0×	Jun 30, 2017
2016	$401B	$25B	16.1×	+0.7×	Jun 30, 2016
2015	$356B	$23.2B	15.4×	+2.5×	Jun 30, 2015
2014	$344B	$26.7B	12.9×	+1.2×	Jun 30, 2014
2013	$287B	$24.6B	11.7×	+2.9×	Jun 30, 2013
2012	$257B	$29.3B	8.8×	-0.1×	Jun 30, 2012
2011	$219B	$24.6B	8.9×	-0.2×	Jun 30, 2011
2010	$201B	$22.1B	9.1×	-4.2×	Jun 30, 2010
2009	$212B	$15.9B	13.3×	-0.5×	Jun 30, 2009
2008	$255B	$18.4B	13.8×	-4.2×	Jun 30, 2008
2007	$280B	$15.5B	18.0×	-0.5×	Jun 30, 2007
2006	$237B	$12.8B	18.5×	+1.6×	Jun 30, 2006
2005	$267B	$15.8B	16.9×	-6.0×	Jun 30, 2005
2004	$309B	$13.5B	22.9×	+4.4×	Jun 30, 2004
2003	$275B	$14.9B	18.5×	-2.3×	Jun 30, 2003
2002	$285B	$13.7B	20.8×	—	Jun 30, 2002


Zebra Technologies (ZBRA)	12.2×
Skyworks Solutions (SWKS)	11.9×
Cognizant (CTSH)	11.8×
NetApp (NTAP)	11.5×
Duolingo (DUOL)	11.1×
Block (XYZ)	11.0×
QUALCOMM (QCOM)	10.8×
Leidos Holdings (LDOS)	10.8×
Workday (WDAY)	10.5×
Salesforce (CRM)	10.5×
Qorvo (QRVO)	10.4×
Adobe (ADBE)	9.8×
Accenture (ACN)	9.6×
Strategy (MSTR)	9.2×
Gartner (IT)	8.8×
Fidelity National Information Services (FIS)	8.7×
DocuSign (DOCU)	8.0×
Gen Digital (GEN)	7.5×
Fiserv (FISV)	7.2×
Science Applications International (SAIC)	7.0×
Hewlett Packard Enterprise (HPE)	6.8×
GoDaddy (GDDY)	6.7×
HP (HPQ)	5.1×
Lyft (LYFT)	4.5×
IBM (IBM)	0.0×

P/FCF Ratio for Microsoft (MSFT) 2002-2026

P/FCF Ratio daily chart for Microsoft (MSFT)

Historical P/FCF Ratio for Microsoft (MSFT) from 2002 to 2025

About P/FCF Ratio at Microsoft (MSFT)

Microsoft P/FCF Ratio by Year

Microsoft P/FCF Ratio 2025: 51.6×

Microsoft P/FCF Ratio 2024: 45.8×

Microsoft P/FCF Ratio 2023: 42.6×

Microsoft P/FCF Ratio 2022: 29.5×

Microsoft P/FCF Ratio 2021: 36.3×

Sector peers by P/FCF Ratio — chart

Sector peers by P/FCF Ratio — table

Frequently asked questions

Microsoft (MSFT) Key Financials