Microsoft Corp (MSFT) Valuation
Historical valuation analysis based on 1281 data points (2021-09-10 to 2026-10-16)
Microsoft develops and licenses consumer and enterprise software. It is known for its Windows operating systems and Office productivity suite. The company is organized into three equally sized broa...
Microsoft Corp (MSFT) currently trades at a P/E ratio of 31.37 (historical range: 21.01–45.30, median: 34.00), placing it at the 38th percentile — below its historical average, P/S ratio of 12.34 (range: 7.90–16.00, 56th percentile — near its historical average), EV/EBITDA of 26.72 (range: 17.35–36.91, 45th percentile).
Microsoft Corp trades near its historical valuation range, with most metrics close to their median levels.
Historical Valuation Metrics
| Metric | Current | Median | %ile | Assessment |
|---|---|---|---|---|
| P/E Ratio | 31.37 | 34.00 | 38th | below its historical average |
| P/S Ratio | 12.34 | 12.12 | 56th | near its historical average |
| EV/EBITDA | 26.72 | 27.38 | 45th | near its historical average |
| FCF Yield | 1.86% | 2.35% | 2th | expensive relative to its history |
Microsoft Corp (MSFT) Valuation & P/E History
Microsoft Corp (MSFT) is a US-listed stock operating in the Technology sector, specifically the Software—Application industry currently trading at $527.15 with a market capitalization of $3.91 trillion. This page provides historical valuation analysis for MSFT based on 1281 data points covering 2021-09-10 to 2026-10-16. The P/E ratio of 31.37 is below the historical median of 34.00, placing MSFT at the 38th percentile of its valuation range. The P/S ratio of 12.34 compares to a median of 12.12.
MSFT Valuation Metrics & Historical Range
The valuation table above shows Microsoft Corp's current and historical valuation multiples, including P/E ratio, P/S ratio, EV/EBITDA, FCF yield, and dividend yield. Each metric is compared to its own historical range to determine whether MSFT is currently trading above or below its typical valuation levels.
- P/E ratio: Price-to-earnings measures how much investors pay per dollar of earnings. A P/E above the historical median suggests MSFT is expensively valued; below the median suggests it is cheap.
- P/S ratio: Price-to-sales is useful for companies with volatile or negative earnings. Lower P/S relative to history may indicate value.
- EV/EBITDA: Enterprise value to EBITDA adjusts for debt and cash, providing a capital-structure-neutral valuation measure for Microsoft Corp.
- FCF yield: Free cash flow yield shows the cash return relative to market price. Higher yields may indicate undervaluation.
Is MSFT Overvalued or Undervalued?
Microsoft Corp trades near its historical valuation range, with most metrics close to their median levels. The overall valuation percentile of 46 combines P/E, P/S, and EV/EBITDA percentiles into a single measure of how expensive MSFT is relative to its own history. A percentile below 25 suggests the stock may be undervalued, while a percentile above 75 suggests it may be overvalued.
However, valuation is only one factor in investment decisions. A stock can remain "overvalued" for years if growth accelerates, or "undervalued" if the business deteriorates. Always combine valuation analysis with financial statement analysis and the full MSFT analysis page for a complete picture.
Valuation data is computed from historical price and fundamental data via Polygon.io and Finnhub.MSFT trades on NYSE/NASDAQ. This page is for informational purposes only and is not financial advice.