Question 1

What is Microsoft's P/S ratio?

Accepted Answer

Microsoft (MSFT) P/S ratio is 9.1× as of July 22, 2026. The ratio is calculated by dividing market capitalisation by trailing twelve-month revenue, using USD-normalised financials (IAS 21 exchange-rate translation for non-USD reporters).

Question 2

How is the P/S ratio calculated?

Accepted Answer

P/S = Market Capitalisation ÷ Trailing Twelve-Month (TTM) Revenue, or equivalently Share Price ÷ TTM Revenue 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/S ratio?

Accepted Answer

The price-to-sales (P/S) ratio compares a company's market capitalisation to its trailing twelve-month (TTM) revenue. It is calculated as market cap ÷ TTM revenue (equivalent to share price ÷ TTM revenue per share). Because the denominator (revenue) cannot be negative, P/S is widely used to value unprofitable or pre-profit companies and to make cross-sector comparisons.

Question 4

What is a good P/S ratio for Microsoft?

Accepted Answer

A "good" P/S depends heavily on profit margin and growth: software and other high-margin businesses often command 5–15× sales, while low-margin retailers and commodity producers typically trade below 1×. Compare against sector peers rather than absolute thresholds. For Microsoft specifically, the relevant sector benchmark is the current sector median of 5.8×.

Question 5

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

Accepted Answer

Microsoft's P/S ratio of 9.1× is below its own 5-year average of 11.5× and above the sector median of 5.8×. That places the current reading at the 9th 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/S ratio range?

Accepted Answer

In the available daily series, Microsoft (MSFT) P/S ratio has ranged from a low of 2.7× in 2009 to a high of 14.8× in 2024. The 5-year average is 11.5× and the 5-year median is 12.0×.

Question 7

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

Accepted Answer

Microsoft (MSFT) P/S ratio at the end of 2025 was 13.1×. Annual values reflect the multiple on the last trading day of each calendar year, using the trailing twelve-month revenue figure available at that date.

Question 8

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

Accepted Answer

Valuation multiples move with two inputs: the numerator (market capitalisation, which tracks the share price) and the denominator (revenue). 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	$282B	13.1×	-0.7×	Jun 30, 2025
2024	$3.39T	$245B	13.8×	+1.9×	Jun 30, 2024
2023	$2.53T	$212B	11.9×	+2.3×	Jun 30, 2023
2022	$1.92T	$198B	9.7×	-2.4×	Jun 30, 2022
2021	$2.04T	$168B	12.1×	+1.3×	Jun 30, 2021
2020	$1.54T	$143B	10.8×	+2.5×	Jun 30, 2020
2019	$1.04T	$126B	8.3×	+1.4×	Jun 30, 2019
2018	$758B	$110B	6.9×	+1.3×	Jun 30, 2018
2017	$534B	$96.6B	5.5×	+0.8×	Jun 30, 2017
2016	$401B	$85.3B	4.7×	+0.9×	Jun 30, 2016
2015	$356B	$93.6B	3.8×	-0.2×	Jun 30, 2015
2014	$344B	$86.8B	4.0×	+0.3×	Jun 30, 2014
2013	$287B	$77.8B	3.7×	+0.2×	Jun 30, 2013
2012	$257B	$73.7B	3.5×	+0.3×	Jun 30, 2012
2011	$219B	$69.9B	3.1×	-0.1×	Jun 30, 2011
2010	$201B	$62.5B	3.2×	-0.4×	Jun 30, 2010
2009	$212B	$58.4B	3.6×	-0.6×	Jun 30, 2009
2008	$255B	$60.4B	4.2×	-1.3×	Jun 30, 2008
2007	$280B	$51.1B	5.5×	+0.1×	Jun 30, 2007
2006	$237B	$44.3B	5.4×	-1.3×	Jun 30, 2006
2005	$267B	$39.8B	6.7×	-1.7×	Jun 30, 2005
2004	$309B	$36.8B	8.4×	-0.2×	Jun 30, 2004
2003	$275B	$32.2B	8.5×	-1.5×	Jun 30, 2003
2002	$285B	$28.4B	10.1×	—	Jun 30, 2002


GoDaddy (GDDY)	2.2×
Fidelity National Information Services (FIS)	2.1×
Skyworks Solutions (SWKS)	2.1×
Qorvo (QRVO)	1.9×
Zebra Technologies (ZBRA)	1.8×
Gartner (IT)	1.7×
Accenture (ACN)	1.6×
Amkor Technology (AMKR)	1.6×
Block (XYZ)	1.5×
Fiserv (FISV)	1.4×
Cognizant (CTSH)	1.4×
EPAM Systems (EPAM)	1.3×
Optical Cable (OCC)	1.2×
Leidos Holdings (LDOS)	1.2×
Jabil (JBL)	1.1×
Dell Technologies (DELL)	1.0×
Sunrun (RUN)	1.0×
Hewlett Packard Enterprise (HPE)	1.0×
Flex (FLEX)	0.9×
Lyft (LYFT)	0.8×
CDW (CDW)	0.7×
Science Applications International (SAIC)	0.6×
Super Micro Computer (SMCI)	0.4×
HP (HPQ)	0.3×
IBM (IBM)	0.0×

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

P/S Ratio daily chart for Microsoft (MSFT)

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

About P/S Ratio at Microsoft (MSFT)

Microsoft P/S Ratio by Year

Microsoft P/S Ratio 2025: 13.1×

Microsoft P/S Ratio 2024: 13.8×

Microsoft P/S Ratio 2023: 11.9×

Microsoft P/S Ratio 2022: 9.7×

Microsoft P/S Ratio 2021: 12.1×

Sector peers by P/S Ratio — chart

Sector peers by P/S Ratio — table

Frequently asked questions

Microsoft (MSFT) Key Financials