Start with its own history
At 32.16×, MSFT is 0.9% above its 10-observation annual average. A lower multiple can reflect a lower price, higher earnings, or weaker growth expectations—not necessarily a bargain.
NASDAQ · MSFTSoftware - InfrastructureUpdated Nov 5, 2026
Microsoft Corporation P/E ratio
Current valuation, historical context, and peer comparisons.
Current P/E ratio
32.16×
0.9% abovethe 10-year annual average
Share price555.8
÷Earnings per share17.28
Price and EPS in quote currency. Calculation details
Investors are paying 32.16 for every 1 of reported earnings per share.
P/E over time
2017 – 2026
Annual P/ESelected-period average 31.88×
3-year average31.85×3 positive annual observations
5-year average31.41×5 positive annual observations
10-year average31.88×10 positive annual observations
Peer median · TTM20.93×8 peers with positive P/E
Historical P/E ratios
Annual period-end data · 25 observations
| Period end | P/E | Change |
|---|---|---|
| Jun 30, 2026 | 20.72× | -42.9% |
| Jun 30, 2025 | 36.31× | -5.7% |
| Jun 30, 2024 | 38.51× | +9.9% |
| Jun 30, 2023 | 35.03× | +32.3% |
| Jun 30, 2022 | 26.48× | -20.6% |
| Jun 30, 2021 | 33.36× | -4.6% |
| Jun 30, 2020 | 34.97× | +31.7% |
| Jun 30, 2019 | 26.55× | -42.1% |
View all 25 annual observations +
| Period end | P/E | Change |
|---|---|---|
| Jun 30, 2018 | 45.87× | +118.9% |
| Jun 30, 2017 | 20.95× | -13.2% |
| Jun 30, 2016 | 24.14× | -18.5% |
| Jun 30, 2015 | 29.63× | +89.0% |
| Jun 30, 2014 | 15.68× | +19.1% |
| Jun 30, 2013 | 13.16× | -13.1% |
| Jun 30, 2012 | 15.14× | +59.0% |
| Jun 30, 2011 | 9.52× | -11.8% |
| Jun 30, 2010 | 10.80× | -25.9% |
| Jun 30, 2009 | 14.58× | +0.7% |
| Jun 30, 2008 | 14.48× | -29.3% |
| Jun 30, 2007 | 20.47× | +6.3% |
| Jun 30, 2006 | 19.26× | -12.4% |
| Jun 30, 2005 | 21.98× | -41.5% |
| Jun 30, 2004 | 37.58× | +2.6% |
| Jun 30, 2003 | 36.63× | +0.2% |
| Jun 30, 2002 | 36.57× | N/M |
Change is relative to the preceding observation. N/M values are excluded from averages.
How MSFT compares
Company P/E vs. peer trailing-12-month ratios
| Company | P/E ratio |
|---|---|
 MSFT This stockMicrosoft Corporation | 32.16× |
 ORCLOracle Corporation | 19.10× |
 IBMInternational Business Machines Corporation | 21.37× |
 SAPSAP SE | 30.23× |
 ADBEAdobe Inc. | 13.84× |
 CRMSalesforce, Inc. | 20.65× |
 NOWServiceNow, Inc. | 77.72× |
 GOOGAlphabet Inc. | 14.82× |
 AMZNAmazon.com, Inc. | 21.21× |
Peers are selected by the data provider. Business models and earnings definitions can differ.
Put the numbers in context
What does MSFT’s P/E tell you?
Compare like with like
The median of the 8 positive peer ratios above is 20.93×. Check growth, margins, debt, and earnings quality before interpreting the gap. A faster-growing business may justify a higher multiple.
Check what drives earnings
One-off gains can temporarily lower P/E; unusual charges can raise it. Reported earnings and forward estimates answer different questions. Pair this view with return on equity and liquidity for a fuller picture.
Keep your research connected
Take MSFT into your spreadsheet
Pull historical P/E into Excel or Google Sheets with Wisesheets. Build your own comparisons alongside the rest of your financial model.
Explore WisesheetsQuarterly P/E · latest quarterLQ selects the latest reported quarter. Requires the Wisesheets add-in. See available data
=WISE("MSFT", "PE Ratio", "LQ")Sources & calculation methodology
Current P/E
Share price 555.8 ÷ EPS 17.28 = 32.16×. Data is supplied by Financial Modeling Prep through Wisesheets. Quote feed updated Nov 5, 2026; this is not a real-time trading quote.
History & averages
Annual and quarterly P/E observations are provided separately from the current quote. Averages use the latest 3, 5, or 10 annual observations, excluding missing and nonpositive ratios. Pre-IPO observations are omitted. These are period-end observations, not daily averages.
Data definitions and limitations
The current quote feed does not specify the exact EPS filing-period end or whether EPS is basic or diluted. We do not label it as forward P/E. Peer ratios are explicitly trailing-12-month (TTM) values. Historical observations do not include independently verified price and EPS inputs. Sources may update on different schedules; rounded inputs can produce small calculation differences. Historical comparisons describe past pricing, not an estimate of fair value.
MSFT P/E ratio: common questions
The essentials behind the numbers.
Microsoft Corporation's current P/E is 32.16× based on the quote data last updated Nov 5, 2026. It represents the share price divided by reported earnings per share. Prices and earnings may refresh on different schedules.
Annual P/E uses earnings for a completed fiscal year. Trailing-12-month (TTM) P/E uses the latest four quarters, while forward P/E uses forecast earnings. These are not interchangeable. This page labels peer ratios as TTM and shows dated annual or quarterly historical observations; it does not show forward estimates.
N/M means not meaningful: the feed has no positive P/E for that observation. Negative or zero earnings should not be ranked as a low positive valuation multiple. N/M observations are excluded from the averages shown above.
Divide the share price by earnings per share (EPS). For example, a share price of 100 and EPS of 5 gives a P/E of 20×. This page uses the price and EPS supplied together in the quote when both are positive.
Price timestamps, EPS definitions, share classes, adjustments, and fiscal periods can differ. A forward P/E also uses forecast earnings rather than reported earnings. Compare the inputs and as-of dates before comparing two displayed ratios.
Not necessarily. The average describes previous market pricing, not fair value. Changes in earnings quality, growth expectations, debt, accounting, and business risk can justify a different multiple today.