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MSFT Microsoft PE ratio, current and historical analysis

The PE ratio for Microsoft stock stands at 32.27 as of Sep 28, 2023. This takes into account the latest EPS of $9.72 and stock price of $313.64. An increase of 10% has been observed in the PE ratio compared to its average of 29.4 of the past four quarters.

MSFT PE ratio history

How has MSFT's PE ratio performed in the past

Over the last ten years, the average PE ratio of Microsoft has been 28.09. The current 32.27 price-to-earnings ratio is 15% more than the historical average. Analyzing the last ten years, MSFT's PE ratio reached its highest point in the Dec 2017 quarter at 48.06, with a price of $85.54 and an EPS of $1.78. The Sep 2013 quarter saw the lowest point at 12.33, with a price of $33.28 and an EPS of $2.7.


Microsoft PE ratio by year

Maximum annual increase: 118.95% in 2018

Maximum annual decrease: -42.84% in 2019

Year PE ratio Change
2023 35.03 32.29%
2022 26.48 -20.62%
2021 33.36 -4.6%
2020 34.97 33.37%
2019 26.22 -42.84%
2018 45.87 118.95%
2017 20.95 6.02%
2016 19.76 -33.31%
2015 29.63 88.97%
2014 15.68 18.43%

MSFT average PE ratio chart

What is the average PE ratio of MSFT for the past years

The current PE ratio of MSFT is above its 3, 5 and 10-year averages.

3-year avg
5-year avg
10-year avg
15-year avg

MSFT PE vs peers

What is MSFT's PE ratio compared to its peers

When compared to its peer IBM, MSFT's PE ratio is lower, but it is higher than AAPL's and GOOGL's. Microsoft is currently trading at a higher PE ratio (32.27) than its peers average of 29.85.

Stock name PE ratio Market cap
HPQ Hp Inc 10.95 $25.53B
CSCO Cisco Systems Inc 17.41 $217.38B
GOOGL Alphabet Inc 27.49 $1.65T
AAPL Apple Inc 28.58 $2.67T
ORCL Oracle Corp 30.54 $289.49B
MSFT Microsoft Corp 32.52 $2.35T
IBM International Business Machines Corp 63.07 $127.56B

Frequently asked questions

What is Microsoft's PE ratio?

As of Sep 28, 2023, MSFT stock has a price to earnings ratio of 32.27.

What is the 3-year average PE ratio for Microsoft (MSFT)?

Over the last 3 years, the average PE ratio for MSFT stock is 31.21.

What is the 5-year average PE ratio for Microsoft (MSFT)?

Over the last 5 years, the average PE ratio for MSFT stock is 30.55.

What is the highest PE ratio for MSFT?

Over the last ten years, the quarterly PE ratio reached its highest level at 48.06 in the Dec 2017 quarter.

How does the current PE ratio for MSFT compare to its historical average?

MSFT's price to earnings ratio is currently 15% above its 10-year historical average.

How is MSFT's PE ratio calculated (Microsoft PE ratio formula)?

To determine the P/E ratio, divide the latest stock price by the TTM earnings per share (EPS). As of today (Sep 28, 2023), Microsoft's share price is $313.64. The company's earnings per share for the trailing twelve months (TTM) ending Jun 2023 is $9.72. Therefore, Microsoft's price to earnings ratio for today is 32.27. PE RATIO(32.27) = STOCK PRICE($313.64) / TTM EPS($9.72)

All PE ratio stats are based on quarterly TTM periods, unless otherwise specified.