MSFT
Microsoft
PEG ratio, current and historical analysis
- Stocks
- Technology
- NASDAQ: MSFT
- PEG Ratio
MSFT currently shows a PEG ratio reading of 0.83 as of Jun 5, 2026. Dividing the 24.71 PE ratio by the 29.8% earnings growth rate produces this figure. When compared to the trailing 4-quarter average of 1.61, MSFT's PEG ratio reflects a 48% decrease.
MSFT PEG ratio history
A ten years lookback reveals an average PEG ratio of 6.51 for Microsoft. Compared to historical data, MSFT's 0.83 PEG ratio represents a drop of 87%. The ten years high came in the Jun 2023 quarter at 175.15, reflecting peak valuation relative to growth. The bottom was reached in the Mar 2017 quarter at 0.16, suggesting attractive value relative to growth during that period.
Microsoft PEG ratio by year
| Year | PEG ratio | PE ratio | Growth YoY |
|---|---|---|---|
| 2025 | 2.34 | 36.31 | 15.5% |
| 2024 | 1.71 | 37.69 | 22% |
| 2023 | 175.15 | 35.03 | 0.2% |
| 2022 | 1.36 | 26.48 | 19.5% |
| 2021 | 0.84 | 33.36 | 39.5% |
| 2020 | 2.52 | 34.97 | 13.9% |
| 2019 | 0.19 | 26.22 | 137.7% |
| 2018 | N/A | 45.87 | -34.7% |
| 2017 | 0.78 | 20.95 | 27% |
| 2016 | 0.27 | 19.76 | 73.8% |
| 2015 | N/A | 29.63 | -44% |
| 2014 | 8.25 | 15.68 | 1.9% |
| 2013 | 0.45 | 13.24 | 29.2% |
| 2012 | N/A | 15.14 | -26% |
| 2011 | 0.34 | 9.52 | 28.2% |
Microsoft PEG ratio by quarter (TTM)
| Year | PEG ratio | PE ratio | Growth YoY |
|---|---|---|---|
| Mar 2026 | 0.74 | 21.96 | 29.8% |
| Dec 2025 | 1.05 | 30.13 | 28.7% |
| Sep 2025 | 2.31 | 36.71 | 15.9% |
| Jun 2025 | 2.34 | 36.31 | 15.5% |
| Mar 2025 | 2.39 | 28.9 | 12.1% |
| Dec 2024 | 2.75 | 33.8 | 12.3% |
| Sep 2024 | 2.02 | 35.36 | 17.5% |
| Jun 2024 | 1.71 | 37.69 | 22% |
| Mar 2024 | 1.43 | 36.3 | 25.3% |
| Dec 2023 | 1.47 | 33.88 | 23.1% |
| Sep 2023 | 2.72 | 30.48 | 11.2% |
| Jun 2023 | 175.15 | 35.03 | 0.2% |
| Mar 2023 | N/A | 31.17 | -4.1% |
| Dec 2022 | N/A | 26.59 | -4.8% |
| Sep 2022 | 7.57 | 24.99 | 3.3% |
MSFT average PEG ratio chart
Measured against past performance, MSFT's PEG ratio is lower than the 3, 5 and 10-year averages.
PEG comparison
Microsoft's PEG of 0.83 is higher than the Technology sector and the industry average but lower than its peers average. Looking at the Technology sector average of 0.74, Microsoft's PEG is 12% higher.
MSFT EPS growth
MSFT Price vs fair value
MSFT PEG vs peers
Relative to its peers, MSFT's PEG ratio is lower than AAPL's and ORCL's yet above GOOGL's and IBM's. Microsoft's PEG ratio of 0.83 is below the peer average of 1.21.
| Stock name | PEG ratio | Market cap |
|---|---|---|
| IBM International Business Machines Corp | 0.26 | $267.72B |
| GOOGL Alphabet Inc | 0.6 | $4.47T |
| MSFT Microsoft Corp | 0.83 | $3.1T |
| ORCL Oracle Corp | 1.27 | $614.55B |
| AAPL Apple Inc | 1.29 | $4.51T |
| CSCO Cisco Systems Inc | 1.8 | $479.44B |
| HPQ Hp Inc | 2.04 | $23.39B |
Frequently asked questions
What is Microsoft's PEG ratio?
Based on Jun 5, 2026 data, MSFT has a PEG ratio of 0.83.
What is the 3-year average PEG ratio for Microsoft (MSFT)?
Historical data over a 3-year period puts MSFT's average PEG ratio at 16.34.
What is the 5-year average PEG ratio for Microsoft (MSFT)?
Historical data over a 5-year period puts MSFT's average PEG ratio at 11.58.
What is the highest PEG ratio for MSFT?
In the last ten years, MSFT's peak PEG ratio of 175.15 occurred in the Jun 2023 quarter.
How does the current PEG ratio for MSFT compare to its historical average?
Compared to the 10-year average, MSFT's PEG ratio stands 87% lower.
How is MSFT's PEG ratio calculated (Microsoft PEG ratio formula)?
To calculate the PEG ratio, take the company's PE ratio and divide by its earnings per share growth (YoY TTM). As of Jun 5, 2026, Microsoft has a PE ratio of 24.71. Earnings grew at 29.8% over the TTM period ending Mar 2026. Applying the formula, this gives a PEG ratio of 0.83. PEG RATIO(0.83) = PE RATIO(24.71) / EPS GROWTH(29.8%)
All PEG ratio stats are based on quarterly TTM periods, unless otherwise specified.