MSFT
Microsoft
PE ratio, current and historical analysis
- Stocks
- Technology
- NASDAQ: MSFT
- PE Ratio
The PE ratio for Microsoft stock stands at 21.86 as of Jun 29, 2026. This takes into account the latest EPS of $16.86 and stock price of $368.57. A decrease of 30% has been observed in the PE ratio compared to its average of 31.3 of the past four quarters.
MSFT PE ratio history
Over the last ten years, the average PE ratio of Microsoft has been 31.23. The current 21.86 price-to-earnings ratio is 30% less 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 Jun 2017 quarter saw the lowest point at 20.95, with a price of $68.93 and an EPS of $3.29.
Microsoft PE ratio by year
Maximum annual increase: 118.95% in 2018
Maximum annual decrease: -42.84% in 2019
| Year | PE ratio | PE change | Price | EPS |
|---|---|---|---|---|
| 2025 | 36.31 | -3.66% | $497.41 | $13.7 |
| 2024 | 37.69 | 7.59% | $446.95 | $11.86 |
| 2023 | 35.03 | 32.29% | $340.54 | $9.72 |
| 2022 | 26.48 | -20.62% | $256.83 | $9.7 |
| 2021 | 33.36 | -4.6% | $270.9 | $8.12 |
| 2020 | 34.97 | 33.37% | $203.51 | $5.82 |
| 2019 | 26.22 | -42.84% | $133.96 | $5.11 |
| 2018 | 45.87 | 118.95% | $98.61 | $2.15 |
| 2017 | 20.95 | 6.02% | $68.93 | $3.29 |
| 2016 | 19.76 | -33.31% | $51.17 | $2.59 |
| 2015 | 29.63 | 88.97% | $44.15 | $1.49 |
| 2014 | 15.68 | 18.43% | $41.7 | $2.66 |
| 2013 | 13.24 | -12.55% | $34.55 | $2.61 |
| 2012 | 15.14 | 59.03% | $30.59 | $2.02 |
| 2011 | 9.52 | -11.85% | $26 | $2.73 |
Microsoft PE ratio by quarter (TTM)
| Year | PE ratio | PE change | Price | EPS |
|---|---|---|---|---|
| Mar 2026 | 21.96 | -27.12% | $370.17 | $16.86 |
| Dec 2025 | 30.13 | -17.92% | $483.62 | $16.05 |
| Sep 2025 | 36.71 | 1.1% | $517.95 | $14.11 |
| Jun 2025 | 36.31 | 25.64% | $497.41 | $13.7 |
| Mar 2025 | 28.9 | -14.5% | $375.39 | $12.99 |
| Dec 2024 | 33.8 | -4.41% | $421.5 | $12.47 |
| Sep 2024 | 35.36 | -6.18% | $430.3 | $12.17 |
| Jun 2024 | 37.69 | 3.83% | $446.95 | $11.86 |
| Mar 2024 | 36.3 | 7.14% | $420.72 | $11.59 |
| Dec 2023 | 33.88 | 11.15% | $376.04 | $11.1 |
| Sep 2023 | 30.48 | -12.99% | $315.75 | $10.36 |
| Jun 2023 | 35.03 | 12.38% | $340.54 | $9.72 |
| Mar 2023 | 31.17 | 17.22% | $288.3 | $9.25 |
| Dec 2022 | 26.59 | 6.4% | $239.82 | $9.02 |
| Sep 2022 | 24.99 | -5.63% | $232.9 | $9.32 |
MSFT Price vs fair value
MSFT average PE ratio chart
What this chart measures
The Historical Valuation Regime chart shows where the stock's current valuation sits relative to its own historical valuation range over the selected lookback period.
This is a history-relative tool, not a market-relative percentile. It does not compare the stock to other companies. Instead, it compares each historical valuation reading to the stock's own past readings.
Percentile logic
The threshold lines are calculated them from the stock's real historical values using percentile interpolation. That is why some colored bands are narrow while others are wide: the band widths reflect how the stock actually traded through time.
Regime map
| Historical percentile | Regime | Chart meaning |
|---|---|---|
| 0-10 | Historically Low | Deep cheap zone |
| >10-25 | Below Average | Cheap relative to history |
| >25-75 | Average | Within the normal historical range |
| >75-90 | Above Average | Expensive relative to history |
| >90-100 | Historically High | Extreme or stretched valuation |
How to read each part
| Chart element | What it tells you |
|---|---|
| Main line | The actual historical valuation values over time for the selected metric. |
| Dashed horizontal lines | The stock's computed P10, P25, Median, P75, and P90 thresholds for the selected period. |
| Colored bands | The historical valuation zones between those thresholds. |
| Metric boxes | Current ratio, historical median, current percentile, and current regime. |
| Timeline strip | A condensed regime history showing how the stock moved between cheap, fair, and expensive states across each observation. |
Important metric definitions
Current Percentile is the percentile rank of the latest valid historical observation within the selected lookback range.
Current Regime is assigned directly from the latest observation's percentile bucket using the fixed 10 / 25 / 75 / 90 cutoffs shown above.
How to use it well
This chart is most useful for answering a narrow question: Is this stock trading high, low, or normal relative to its own history? It works best alongside growth, profitability, and forward-looking business analysis, because a stock can deserve a higher or lower regime if its business quality has changed.
The current PE ratio of MSFT is under its 3, 5 and 10-year averages.
PE comparison
Microsoft's price to earnings (P/E) of 21.86 is lower than the Technology sector, the industry and its peers average. Looking at the Technology sector average of 37.59, Microsoft's price to earnings (P/E) is 42% lower.
MSFT PE vs peers
When compared to its peers GOOGL and AAPL, MSFT's PE ratio is lower, but it is higher than HPQ's. Microsoft is currently trading at a lower PE ratio (21.86) than its peers average of 26.18.
| Stock name | PE ratio | Market cap |
|---|---|---|
| HPQ Hp Inc | 8.29 | $20.7B |
| MSFT Microsoft Corp | 21.86 | $2.74T |
| IBM International Business Machines Corp | 24.11 | $261.29B |
| ORCL Oracle Corp | 24.88 | $425.62B |
| GOOGL Alphabet Inc | 26.71 | $4.28T |
| AAPL Apple Inc | 33.99 | $4.14T |
| CSCO Cisco Systems Inc | 39.1 | $463.91B |
Frequently asked questions
What is Microsoft's PE ratio?
As of Jun 29, 2026, MSFT stock has a price to earnings ratio of 21.86.
What is the 3-year average PE ratio for Microsoft (MSFT)?
Over the last 3 years, the average PE ratio for MSFT stock is 32.87.
What is the 5-year average PE ratio for Microsoft (MSFT)?
Over the last 5 years, the average PE ratio for MSFT stock is 31.82.
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 30% below 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 (Jun 29, 2026), Microsoft's share price is $368.57. The company's earnings per share for the trailing twelve months (TTM) ending Mar 2026 is $16.86. Therefore, Microsoft's price to earnings ratio for today is 21.86. PE RATIO(21.86) = STOCK PRICE($368.57) / TTM EPS($16.86)
All PE ratio stats are based on quarterly TTM periods, unless otherwise specified.