Question 1

What is Microsoft's P/B ratio?

Accepted Answer

Microsoft (MSFT) P/B ratio is 7.0× as of July 22, 2026. The ratio is calculated by dividing market capitalisation by book value of equity, using USD-normalised financials (IAS 21 exchange-rate translation for non-USD reporters).

Question 2

How is the P/B ratio calculated?

Accepted Answer

P/B = Market Capitalisation ÷ Book Value of Equity (most recent quarterly shareholders' equity), or equivalently Share Price ÷ Book Value Per Share. 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/B ratio?

Accepted Answer

The price-to-book (P/B) ratio compares a company's market capitalisation to its book value of equity (total shareholders' equity) on the most recent quarterly balance sheet. It is calculated as market cap ÷ book value of equity (equivalent to share price ÷ book value per share). A P/B below 1× implies the market values the business below its accounting net worth; values well above 1× reflect intangible assets, brand value, or a high return on equity.

Question 4

What is a good P/B ratio for Microsoft?

Accepted Answer

A "good" P/B depends on the business model. Banks, insurers, and other capital-heavy financials typically trade near 1×; asset-light technology and consumer-brand companies can sustainably trade at 5×+ because much of their value is intangible. P/B is most informative when paired with return on equity (ROE). For Microsoft specifically, the relevant sector benchmark is the current sector median of 5.6×.

Question 5

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

Accepted Answer

Microsoft's P/B ratio of 7.0× is below its own 5-year average of 11.4× and above the sector median of 5.6×. That places the current reading at the 2th 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/B ratio range?

Accepted Answer

In the available daily series, Microsoft (MSFT) P/B ratio has ranged from a low of 3.1× in 2012 to a high of 17.1× in 2021. The 5-year average is 11.4× and the 5-year median is 11.1×.

Question 7

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

Accepted Answer

Microsoft (MSFT) P/B ratio at the end of 2025 was 10.8×. Annual values reflect the multiple on the last trading day of each calendar year, using the trailing twelve-month book value figure available at that date.

Question 8

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

Accepted Answer

Valuation multiples move with two inputs: the numerator (market capitalisation, which tracks the share price) and the denominator (book value). 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	$343B	10.8×	-1.9×	Jun 30, 2025
2024	$3.39T	$268B	12.6×	+0.4×	Jun 30, 2024
2023	$2.53T	$206B	12.3×	+0.8×	Jun 30, 2023
2022	$1.92T	$167B	11.5×	-2.8×	Jun 30, 2022
2021	$2.04T	$142B	14.4×	+1.3×	Jun 30, 2021
2020	$1.54T	$118B	13.0×	+2.9×	Jun 30, 2020
2019	$1.04T	$102B	10.1×	+1.0×	Jun 30, 2019
2018	$758B	$82.7B	9.2×	+3.1×	Jun 30, 2018
2017	$534B	$87.7B	6.1×	+0.5×	Jun 30, 2017
2016	$401B	$72B	5.6×	+1.1×	Jun 30, 2016
2015	$356B	$80.1B	4.4×	+0.6×	Jun 30, 2015
2014	$344B	$89.8B	3.8×	+0.2×	Jun 30, 2014
2013	$287B	$78.9B	3.6×	-0.2×	Jun 30, 2013
2012	$257B	$66.4B	3.9×	+0.0×	Jun 30, 2012
2011	$219B	$57.1B	3.8×	-0.5×	Jun 30, 2011
2010	$201B	$46.2B	4.3×	-1.0×	Jun 30, 2010
2009	$212B	$39.6B	5.3×	-1.7×	Jun 30, 2009
2008	$255B	$36.3B	7.0×	-2.0×	Jun 30, 2008
2007	$280B	$31.1B	9.0×	+3.1×	Jun 30, 2007
2006	$237B	$40.1B	5.9×	+0.4×	Jun 30, 2006
2005	$267B	$48.1B	5.5×	+1.4×	Jun 30, 2005
2004	$309B	$74.8B	4.1×	-0.4×	Jun 30, 2004
2003	$275B	$61B	4.5×	-1.0×	Jun 30, 2003
2002	$285B	$52.2B	5.5×	—	Jun 30, 2002


Zebra Technologies (ZBRA)	2.9×
Zoom Communications (ZM)	2.9×
Fortive (FTV)	2.9×
IREN (IREN)	2.8×
Trimble (TRMB)	2.7×
Twilio (TWLO)	2.5×
Amkor Technology (AMKR)	2.5×
First Solar (FSLR)	2.1×
EPAM Systems (EPAM)	2.1×
Qorvo (QRVO)	2.1×
IonQ (IONQ)	2.1×
Intel (INTC)	2.0×
Roper Technologies (ROP)	2.0×
Cognizant (CTSH)	1.9×
Okta (OKTA)	1.9×
Super Micro Computer (SMCI)	1.8×
Lyft (LYFT)	1.7×
Block (XYZ)	1.7×
Hewlett Packard Enterprise (HPE)	1.5×
Fidelity National Information Services (FIS)	1.5×
Skyworks Solutions (SWKS)	1.4×
Fiserv (FISV)	1.1×
Sunrun (RUN)	1.0×
Strategy (MSTR)	0.9×
IBM (IBM)	0.0×

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

P/B Ratio daily chart for Microsoft (MSFT)

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

About P/B Ratio at Microsoft (MSFT)

Microsoft P/B Ratio by Year

Microsoft P/B Ratio 2025: 10.8×

Microsoft P/B Ratio 2024: 12.6×

Microsoft P/B Ratio 2023: 12.3×

Microsoft P/B Ratio 2022: 11.5×

Microsoft P/B Ratio 2021: 14.4×

Sector peers by P/B Ratio — chart

Sector peers by P/B Ratio — table

Frequently asked questions

Microsoft (MSFT) Key Financials