MSFT
Microsoft
PE ratio, current and historical analysis
- Stocks
- Technology
- NASDAQ: MSFT
- PE Ratio
The PE ratio for Microsoft stock stands at 27.52 as of Aug 14, 2026. This takes into account the latest EPS of $18 and stock price of $495.4. The PE ratio at present is nearly equal to the average from the previous 4 quarters.
MSFT PE ratio history
Over the last ten years, the average PE ratio of Microsoft has been 30.97. The current 27.52 price-to-earnings ratio is 11% 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 2026 quarter saw the lowest point at 20.72, with a price of $373.02 and an EPS of $18.
Microsoft PE ratio by year
Maximum annual increase: 118.95% in 2018
Maximum annual decrease: -42.94% in 2026
| Year | PE ratio | PE change | Price | EPS |
|---|---|---|---|---|
| 2026 | 20.72 | -42.94% | $373.02 | $18 |
| 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 |
Microsoft PE ratio by quarter (TTM)
| Year | PE ratio | PE change | Price | EPS |
|---|---|---|---|---|
| Jun 2026 | 20.72 | -5.65% | $373.02 | $18 |
| 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 |
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 27.52 is higher than its peers average but lower than the Technology sector and the industry average. Looking at the Technology sector average of 34.87, Microsoft's price to earnings (P/E) is 21% lower.
MSFT PE vs peers
Frequently asked questions
What is Microsoft's PE ratio?
As of Aug 14, 2026, MSFT stock has a price to earnings ratio of 27.52.
What is the 3-year average PE ratio for Microsoft (MSFT)?
Over the last 3 years, the average PE ratio for MSFT stock is 31.85.
What is the 5-year average PE ratio for Microsoft (MSFT)?
Over the last 5 years, the average PE ratio for MSFT stock is 31.26.
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 11% 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 (Aug 14, 2026), Microsoft's share price is $495.4. The company's earnings per share for the trailing twelve months (TTM) ending Jun 2026 is $18. Therefore, Microsoft's price to earnings ratio for today is 27.52. PE RATIO(27.52) = STOCK PRICE($495.4) / TTM EPS($18)
All PE ratio stats are based on quarterly TTM periods, unless otherwise specified.