MSFTBULLISH

MSFT P/E Ratio Analysis

26.7x

Higher than 38% of Technology sector peers

Updated 82h ago·SEC filings & market data

Key Takeaway

The P/E ratio compares a company's share price to its earnings per share, showing what investors pay for each dollar of profit; Microsoft's 27.5x means they pay $27.50 for every $1 of annual earnings.

Sector Performance

38th percentile

MSFT

26.7x

Sector Median

37.1x

Sector Avg

160.9x

Prior Period

27.5x(Aug 2026)

↑ Improving

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Deep Analysis

This sits below the Technology sector median of 37.1x, placing Microsoft in the 38th percentile, so it is cheaper than most sector peers. The year-over-year change is N/A, and the quarter-over-quarter change is +1.6%, moving from 27.1x to 27.5x, though no longer-term trend data is available. A below-median valuation combined with a slight quarterly rise suggests modest upside potential without excessive price risk. This metric supports the overall BULLISH verdict, as a lower P/E than peers leaves room for multiple expansion or earnings 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 26.7x compares to a Technology sector median of 37.1x, placing it in the 38th percentile.

Who are MSFT's closest peers by P/E Ratio?

The closest Technology peers by P/E Ratio include: AAPL (37.1x), AMAT (36.9x), APH (37.6x), AKAM (37.6x), APP (38.8x).

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Learn More About P/E Ratio

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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.