PEG Ratio
Higher than 55% of Technology sector peers
Updated 672h ago
Sector Performance
55th percentileMSFT
1.07x
Sector Median
0.69x
Sector Avg
2.38x
Deep Analysis
Microsoft Corporation (MSFT) has a PEG Ratio of 1.07x as of June 2026.
This places MSFT in the 55th percentile of the Technology sector, which has a median PEG Ratio of 0.69x and a sector average of 2.38x. MSFT's PEG Ratio is 55.1% above the sector median, a significant divergence that warrants closer examination. In context: The PEG ratio adjusts P/E for expected growth. A PEG below 1.0 may signal undervaluation; above 2.0 may suggest the growth story is priced in.
Frequently Asked Questions
What does the PEG Ratio tell investors about MSFT?
The PEG ratio adjusts P/E for expected growth. A PEG below 1.0 may signal undervaluation; above 2.0 may suggest the growth story is priced in.
How is the PEG Ratio calculated?
PEG Ratio is calculated as: P/E Ratio / EPS Growth Rate.
How does MSFT's PEG Ratio compare to its sector?
MSFT's PEG Ratio of 1.07x compares to a Technology sector median of 0.69x, placing it in the 55th percentile.
Who are MSFT's closest peers by PEG Ratio?
The closest Technology peers by PEG Ratio include: QRVO (0.58x), ADI (0.49x), CRM (0.47x), PLTR (0.38x), HUBS (0.37x).
The Formula
P/E Ratio / EPS Growth Rate
Why It Matters
The PEG ratio adjusts P/E for expected growth. A PEG below 1.0 may signal undervaluation; above 2.0 may suggest the growth story is priced in.
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1.07x
Sector Median
0.69x
Sector Avg
2.38x
How MSFT's PEG Ratio compares to sector peers.
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Not financial advice. Research tool only. Data may be delayed.