P/E Ratio
Higher than 33% of Technology sector peers
Updated 17h ago
Sector Performance
33th percentileMSFT
24.1x
Sector Median
41.4x
Sector Avg
56.3x
Deep Analysis
Microsoft Corporation (MSFT) has a P/E Ratio of 24.1x as of May 2026.
This places MSFT in the 33th percentile of the Technology sector, which has a median P/E Ratio of 41.4x and a sector average of 56.3x. MSFT's P/E Ratio is 41.9% below the sector median. In context: Measures how much investors pay per dollar of earnings. A high P/E signals growth expectations; a low P/E may indicate undervaluation or slow growth.
Frequently Asked Questions
What does the P/E Ratio tell investors about MSFT?
Measures how much investors pay per dollar of earnings. A high P/E signals growth expectations; a low P/E may indicate undervaluation or slow growth.
How is the P/E Ratio calculated?
P/E Ratio is calculated as: Price / EPS.
How does MSFT's P/E Ratio compare to its sector?
MSFT's P/E Ratio of 24.1x compares to a Technology sector median of 41.4x, placing it in the 33th percentile.
Who are MSFT's closest peers by P/E Ratio?
The closest Technology peers by P/E Ratio include: APH (37.6x), AAPL (35.6x), ORCL (32.8x), MNDY (29.6x), PCTY (22.3x).
The Formula
Price / EPS
Why It Matters
Measures how much investors pay per dollar of earnings. A high P/E signals growth expectations; a low P/E may indicate undervaluation or slow growth.
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24.1x
Sector Median
41.4x
Sector Avg
56.3x
How MSFT's P/E Ratio compares to sector peers.
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Not financial advice. Research tool only. Data may be delayed.