Microsoft
MSFT
#3
Rank
$1.802 T
Marketcap
$241.76
Share price
-2.32%
Change (1 day)
-26.67%
Change (1 year)
Microsoft is an American company that develops and distributes software and services such as: a search engine (Bing), cloud solutions and the computer operating system Windows.

P/E ratio for Microsoft (MSFT)

P/E ratio as of November 2022 (TTM): 25.9

According to Microsoft's latest financial reports and stock price the company's current price-to-earnings ratio (TTM) is 25.9399. At the end of 2021 the company had a P/E ratio of 35.5.

P/E ratio history for Microsoft from 2001 to 2022

PE ratio at the end of each year

Year P/E ratio Change
202135.58.26%
202032.820.65%
201927.216.45%
201823.3-59.33%
201757.498.63%
201628.9-26.03%
201539.1110.28%
201418.635.59%
201313.7-5.6%
201214.5

P/E ratio for similar companies or competitors

Company P/E ratio P/E ratio differencediff. Country
23.5-9.45%๐Ÿ‡บ๐Ÿ‡ธ USA
17.0-34.50%๐Ÿ‡บ๐Ÿ‡ธ USA
37.2 43.27%๐Ÿ‡บ๐Ÿ‡ธ USA
36.5 40.73%๐Ÿ‡ฉ๐Ÿ‡ช Germany
103 296.86%๐Ÿ‡บ๐Ÿ‡ธ USA
5.04-80.55%๐Ÿ‡บ๐Ÿ‡ธ 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.