P/E ratio for Microsoft (MSFT)
P/E ratio as of March 2023 (TTM): 30.4
According to Microsoft's latest financial reports and stock price the company's current price-to-earnings ratio (TTM) is 30.3526. 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 |
|---|---|---|
| 2021 | 35.5 | 8.26% |
| 2020 | 32.8 | 20.65% |
| 2019 | 27.2 | 16.45% |
| 2018 | 23.3 | -59.33% |
| 2017 | 57.4 | 98.63% |
| 2016 | 28.9 | -26.03% |
| 2015 | 39.1 | 110.28% |
| 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 | 23.6 | -22.14% | 🇺🇸 USA |
 Cisco CSCO | 18.5 | -39.07% | 🇺🇸 USA |
 Oracle ORCL | 26.5 | -12.56% | 🇺🇸 USA |
 SAP SAP | 41.7 | 37.51% | 🇩🇪 Germany |
 IBM IBM | 89.1 | 193.66% | 🇺🇸 USA |
 HP HPQ | 11.3 | -62.71% | 🇺🇸 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.