PEG Ratio
Higher than 47% of Technology sector peers
Updated 16h ago
Sector Performance
47th percentileMSFT
1.04x
Sector Median
1.12x
Sector Avg
1.95x
Deep Analysis
Microsoft Corporation (MSFT) has a PEG Ratio of 1.04x as of May 2026.
This places MSFT in the 47th percentile of the Technology sector, which has a median PEG Ratio of 1.12x and a sector average of 1.95x. MSFT's PEG Ratio is 7.1% below the sector median. 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 1.04x compares to a Technology sector median of 1.12x, placing it in the 47th percentile.
Who are MSFT's closest peers by PEG Ratio?
The closest Technology peers by PEG Ratio include: ANSS (1.12x), BR (1.17x), PCTY (1.03x), KLIC (0.69x), MRVL (0.59x).
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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1.04x
Sector Median
1.12x
Sector Avg
1.95x
How MSFT's PEG Ratio compares to sector peers.
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