Microsoft Corporation (MSFT) P/E Ratio History
Historical price-to-earnings valuation from 1990 to 2026
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MSFT Valuation Context
How does the current P/E compare to historical and market benchmarks?
P/E Ratio Analysis
As of May 6, 2026, Microsoft Corporation (MSFT) trades at a price-to-earnings ratio of 30.2x, with a stock price of $411.35 and trailing twelve-month earnings per share of $16.82.
The current P/E is roughly in line with its 5-year average of 32.0x. Over the past five years, MSFT's P/E has ranged from a low of 22.0x to a high of 37.8x, placing the current valuation at the 25th percentile of its historical range.
Compared to the Technology sector median P/E of 26.7x, MSFT is roughly in line with its sector peers. The sector includes 358 companies with P/E ratios ranging from 0.0x to 197.6x.
The PEG ratio of 1.60 (P/E divided by 16% EPS growth) suggests a fair valuation relative to its earnings growth. Peter Lynch popularized the rule that a PEG below 1.0 indicates an attractive entry point.
Relative to the broader market, MSFT commands a significant premium over the S&P 500 median P/E of 25.1x. Investors should consider the company's growth prospects, competitive position, and earnings quality when evaluating whether the current valuation is justified.
For a comprehensive intrinsic value estimate using discounted cash flow analysis, see our MSFT DCF Valuation Calculator →
Note: P/E ratio is just one valuation metric. It does not account for balance sheet strength, cash flow quality, or growth sustainability. Always conduct comprehensive due diligence before making investment decisions.
MSFT P/E vs Peers
P/E ratio compared to closely matched public peers
| Company | Market Cap | P/E Ratio | PEG Ratio | EPS Growth (1Y) |
|---|---|---|---|---|
| $4.2T | 38.1 | 2.13 | +23% | |
| $4.7T | 35.9 | 1.20 | +34% | |
| $2.9T | 38.1 | 1.36 | +30% | |
| $1.5T | 25.8 | 1.40 | -2% | |
| $533B | 42.7 | 6.02 | +17% | |
| $180B | 24.0 | 1.96 | +23% | |
| $201B | 24.5 | 3.71 | +126%Best | |
| $106B | 15.3Lowest | 1.69 | +35% | |
| $95B | 55.1 | 0.79Best | +22% | |
| $34B | 50.0 | - | +32% |
Peers sorted by market capitalization. P/E below peers may indicate undervaluation or lower growth expectations. Consider PEG ratio for growth-adjusted comparison.
MSFT Historical P/E Data (1990–2026)
Quarterly P/E ratios calculated from closing price and TTM EPS
| Quarter | Date | Price | TTM EPS | P/E Ratio | vs Avg |
|---|---|---|---|---|---|
| FY2026 Q3 | $370.17 | $16.80 | 22.0x | -27% | |
| FY2026 Q2 | Wed Dec 31 2025 00:00:00 GM | $483.62 | $15.99 | 30.2x | +1% |
| FY2026 Q1 | $517.95 | $14.06 | 36.8x | +23% | |
| FY2025 Q4 | Mon Jun 30 2025 00:00:00 GM | $497.41 | $13.64 | 36.5x | +21% |
| FY2025 Q3 | Mon Mar 31 2025 00:00:00 GM | $375.39 | $12.94 | 29.0x | -3% |
| FY2025 Q2 | $421.50 | $12.42 | 33.9x | +13% | |
| FY2025 Q1 | Mon Sep 30 2024 00:00:00 GM | $430.30 | $12.12 | 35.5x | +18% |
| FY2024 Q4 | Sun Jun 30 2024 00:00:00 GM | $446.95 | $11.81 | 37.8x | +26% |
| FY2024 Q3 | Sun Mar 31 2024 00:00:00 GM | $420.72 | $11.55 | 36.4x | +21% |
| FY2024 Q2 | Sun Dec 31 2023 00:00:00 GM | $376.04 | $11.06 | 34.0x | +13% |
| FY2024 Q1 | Sat Sep 30 2023 00:00:00 GM | $315.75 | $10.33 | 30.6x | +2% |
| FY2023 Q4 | Fri Jun 30 2023 00:00:00 GM | $340.54 | $9.69 | 35.1x | +17% |
Average P/E for displayed period: 30.1x
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Start ComparisonMSFT — Frequently Asked Questions
Quick answers to the most common questions about buying MSFT stock.
Is MSFT stock overvalued or undervalued?
MSFT trades at 30.2x P/E, near its 5-year average of 32.0x. The 25th percentile ranking places valuation within normal historical bounds.
How does MSFT's valuation compare to peers?
Microsoft Corporation P/E of 30.2x compares to sector median of 26.7x. The premium reflects expected growth above peers.
What is MSFT's PEG ratio?
MSFT PEG ratio is 1.60. Between 1-2 suggests valuation aligns with growth. Historical P/E data spans 1990-2026.