P/E ratio for Microsoft (MSFT)
P/E ratio as of April 2024 (TTM): 37.0
According to Microsoft's latest financial reports and stock price the company's current price-to-earnings ratio (TTM) is 37.0464. At the end of 2022 the company had a P/E ratio of 26.6.
P/E ratio history for Microsoft from 2001 to 2023
PE ratio at the end of each year
| Year | P/E ratio | Change |
|---|---|---|
| 2022 | 26.6 | -25.14% |
| 2021 | 35.5 | 8.26% |
| 2020 | 32.8 | 20.65% |
| 2019 | 27.2 | 16.45% |
| 2018 | 23.3 | -56.87% |
| 2017 | 54.1 | 110.84% |
| 2016 | 25.7 | -32.89% |
| 2015 | 38.3 | 105.93% |
| 2014 | 18.6 | 35.59% |
| 2013 | 13.7 | -5.6% |
| 2012 | 14.5 |
P/E ratio for similar companies or competitors
| Company | P/E ratio | P/E ratio differencediff. | Country |
|---|---|---|---|
 Apple AAPL | 26.5 | -28.46% | 🇺🇸 USA |
 Cisco CSCO | 15.5 | -58.15% | 🇺🇸 USA |
 Oracle ORCL | 34.1 | -7.83% | 🇺🇸 USA |
 SAP SAP | 35.0 | -5.48% | 🇩🇪 Germany |
 IBM IBM | 21.8 | -41.06% | 🇺🇸 USA |
 HP HPQ | 12.1 | -67.47% | 🇺🇸 USA |
How to read a P/E ratio?
The Price/Earnings ratio measures the relationship between a company's stock price and its earnings per share. A low but positive P/E ratio stands for a company that is generating high earnings compared to its current valuation and might be undervalued. A company with a high negative (near 0) P/E ratio stands for a company that is generating heavy losses compared to its current valuation.
Companies with a P/E ratio over 30 or a negative one are generaly seen as "growth stocks" meaning that investors typically expect the company to grow or to become profitable in the future.
Companies with a positive P/E ratio bellow 10 are generally seen as "value stocks" meaning that the company is already very profitable and unlikely to strong growth in the future.