Microsoft (MSFT) P/E Ratio
P/E Ratio as of Jul 18, 2025: 39.41
Average38.56
Median38.46
Minimum37.56
Maximum39.54
39.41
Past Month+2.52 (6.83%)
The P/E ratio for Microsoft (MSFT) is 39.41 as of Jul 18, 2025. This represents a increase of 15.78% compared to its 12-month average P/E ratio of 34.04. A higher P/E ratio suggests that investors expect strong future earnings growth, while a lower P/E ratio may indicate a potentially undervalued stock or slowing growth.
Microsoft P/E Ratio Formula = Stock Price ÷ Earnings Per Share (EPS)
Microsoft’s P/E ratio represents the valuation of the company based on its earnings. It’s calculated by dividing the company’s latest stock price by its diluted earnings per share (EPS) over the past 12 months. The P/E ratio helps investors assess how much they are paying for each dollar of earnings, offering valuable insights when comparing Microsoft to industry peers.
Microsoft P/E Ratio Formula = Stock Price ÷ Earnings Per Share (EPS)
Microsoft’s P/E ratio represents the valuation of the company based on its earnings. It’s calculated by dividing the company’s latest stock price by its diluted earnings per share (EPS) over the past 12 months. The P/E ratio helps investors assess how much they are paying for each dollar of earnings, offering valuable insights when comparing Microsoft to industry peers.
Microsoft (MSFT) P/E Ratio Insights
See Microsoft’s latest P/E ratio, historical trends, and valuation insights with AI-powered fundamental data and custom analysis.
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Microsoft (MSFT) P/E Ratio Historic Data
| Date | Stock price | P/E ratio |
|---|---|---|
| Jul 1, 2025 | $492.05 | 38.02 |
| Jun 2, 2025 | $461.97 | 35.70 |
| May 1, 2025 | $425.40 | 32.87 |
| Apr 1, 2025 | $382.19 | 29.53 |
| Mar 3, 2025 | $388.49 | 31.29 |
| Feb 3, 2025 | $410.92 | 33.10 |
| Jan 2, 2025 | $418.58 | 33.71 |
Microsoft (MSFT) End of Year P/E Ratio
| Date | P/E ratio | Change |
|---|---|---|
| 2025 | 39.41 | +16.08% |
| 2024 | 33.95 | -6.78% |
| 2023 | 36.42 | +40.94% |
| 2022 | 25.84 | -27.78% |
| 2021 | 35.78 | +8.03% |
| 2020 | 33.12 | — |
FAQs About Microsoft (MSFT) P/E ratio
The latest P/E ratio of Microsoft (MSFT) is 39.41, as of Jul 18, 2025. This is calculated based on its current stock price and earnings per share (EPS).
Microsoft’s last 12-month average P/E ratio is 34.04, compared to its current P/E ratio of 39.41. This reflects a increase of 15.78%.
Microsoft’s current P/E ratio of 39.41 is higher than its last 12-month average P/E of 34.04. A higher P/E can indicate strong future growth expectations, while a lower P/E might suggest undervaluation.
Microsoft’s average P/E ratio over the last 3 years is 32.84. Comparing this to the current P/E helps assess recent valuation trends and whether the stock is trading above or below its mid-term historical range.
Microsoft’s average P/E ratio over the last 5 years is 33.25. A deviation from this historical average may indicate shifts in growth expectations, profitability, or broader market conditions affecting valuation.