Question 1

What is Microsoft's P/E ratio?

Accepted Answer

Microsoft (MSFT) P/E ratio is 23.2× as of July 22, 2026. The ratio is calculated by dividing market capitalisation by trailing twelve-month earnings (net income), using USD-normalised financials (IAS 21 exchange-rate translation for non-USD reporters).

Question 2

How is the P/E ratio calculated?

Accepted Answer

P/E = Share Price ÷ Trailing Twelve-Month (TTM) Diluted EPS, or equivalently Market Capitalisation ÷ TTM Net Income. 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/E ratio?

Accepted Answer

The price-to-earnings (P/E) ratio, also called the earnings multiple, measures how much investors pay per dollar of a company's trailing twelve-month (TTM) earnings. It is calculated as share price ÷ TTM diluted EPS (equivalent to market capitalisation ÷ TTM net income). A higher P/E implies the market is pricing in stronger future earnings growth or lower risk; a lower P/E can signal slower expected growth, higher risk, or potential undervaluation.

Question 4

What is a good P/E ratio for Microsoft?

Accepted Answer

There is no universal "good" P/E. As a rule of thumb, the S&P 500 has historically averaged a P/E in the mid-to-high teens; mature, slow-growth businesses commonly trade in the 10–18× range, while high-growth or asset-light companies often trade at 25–50×+. What matters is the comparison to sector peers and to the company's own historical range. For Microsoft specifically, the relevant sector benchmark is the current sector median of 29.4×.

Question 5

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

Accepted Answer

Microsoft's P/E ratio of 23.2× is below its own 5-year average of 31.9× and below the sector median of 29.4×. 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/E ratio range?

Accepted Answer

In the available daily series, Microsoft (MSFT) P/E ratio has ranged from a low of 8.9× in 2011 to a high of 51.3× in 2002. The 5-year average is 31.9× and the 5-year median is 32.6×.

Question 7

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

Accepted Answer

Microsoft (MSFT) P/E ratio at the end of 2025 was 36.3×. Annual values reflect the multiple on the last trading day of each calendar year, using the trailing twelve-month earnings figure available at that date.

Question 8

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

Accepted Answer

Valuation multiples move with two inputs: the numerator (market capitalisation, which tracks the share price) and the denominator (earnings). 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	$102B	36.3×	-2.2×	Jun 30, 2025
2024	$3.39T	$88.1B	38.5×	+3.5×	Jun 30, 2024
2023	$2.53T	$72.4B	35.0×	+8.6×	Jun 30, 2023
2022	$1.92T	$72.7B	26.4×	-6.9×	Jun 30, 2022
2021	$2.04T	$61.3B	33.3×	-1.6×	Jun 30, 2021
2020	$1.54T	$44.3B	34.8×	+8.4×	Jun 30, 2020
2019	$1.04T	$39.2B	26.5×	-19.3×	Jun 30, 2019
2018	$758B	$16.6B	45.7×	+24.8×	Jun 30, 2018
2017	$534B	$25.5B	20.9×	-2.9×	Jun 30, 2017
2016	$401B	$16.8B	23.9×	-5.3×	Jun 30, 2016
2015	$356B	$12.2B	29.2×	+13.6×	Jun 30, 2015
2014	$344B	$22.1B	15.6×	+2.5×	Jun 30, 2014
2013	$287B	$21.9B	13.1×	-2.0×	Jun 30, 2013
2012	$257B	$17B	15.1×	+5.6×	Jun 30, 2012
2011	$219B	$23.2B	9.5×	-1.2×	Jun 30, 2011
2010	$201B	$18.8B	10.7×	-3.8×	Jun 30, 2010
2009	$212B	$14.6B	14.5×	+0.1×	Jun 30, 2009
2008	$255B	$17.7B	14.4×	-5.5×	Jun 30, 2008
2007	$280B	$14.1B	19.9×	+1.1×	Jun 30, 2007
2006	$237B	$12.6B	18.8×	-2.9×	Jun 30, 2006
2005	$267B	$12.3B	21.8×	-16.1×	Jun 30, 2005
2004	$309B	$8.17B	37.8×	+3.3×	Jun 30, 2004
2003	$275B	$7.97B	34.5×	-1.9×	Jun 30, 2003
2002	$285B	$7.83B	36.4×	—	Jun 30, 2002


Dell Technologies (DELL)	16.2×
Western Digital (WDC)	15.7×
Accenture (ACN)	15.4×
Gartner (IT)	14.9×
CDW (CDW)	14.5×
Adobe (ADBE)	14.4×
Leidos Holdings (LDOS)	14.1×
Zoom Communications (ZM)	13.8×
QUALCOMM (QCOM)	13.7×
PTC (PTC)	13.5×
Paycom Software (PAYC)	13.2×
Elastic N.V. (ESTC)	13.2×
Cognizant (CTSH)	13.1×
First Solar (FSLR)	12.7×
GoDaddy (GDDY)	12.7×
Gen Digital (GEN)	11.7×
Duolingo (DUOL)	10.9×
Super Micro Computer (SMCI)	10.9×
Science Applications International (SAIC)	10.3×
Fiserv (FISV)	9.3×
Fidelity National Information Services (FIS)	9.0×
HP (HPQ)	7.5×
Sunrun (RUN)	5.6×
Lyft (LYFT)	1.8×
IBM (IBM)	0.0×

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

P/E Ratio daily chart for Microsoft (MSFT)

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

About P/E Ratio at Microsoft (MSFT)

Microsoft P/E Ratio by Year

Microsoft P/E Ratio 2025: 36.3×

Microsoft P/E Ratio 2024: 38.5×

Microsoft P/E Ratio 2023: 35.0×

Microsoft P/E Ratio 2022: 26.4×

Microsoft P/E Ratio 2021: 33.3×

Sector peers by P/E Ratio — chart

Sector peers by P/E Ratio — table

Frequently asked questions

Microsoft (MSFT) Key Financials