Price to Book Value (P/BV)
since 2005
Calculation
Microsoft Corp., P/BV, long-term trends, calculation
| P/BV | = | Share price1, 2, 3 | ÷ | Book value per share1 (BVPS) | BVPS1 | = | Stockholders’ equity1 (in millions) |
÷ | No. shares of common stock outstanding2 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Jul 29, 2026 | 6.56 | = | 390.54 | ÷ | 59.58 | 59.58 | = | 442,387 | ÷ | 7,425,545,491 | |
| Jul 30, 2025 | 11.11 | = | 513.24 | ÷ | 46.21 | 46.21 | = | 343,479 | ÷ | 7,433,166,379 | |
| Jul 30, 2024 | 11.71 | = | 422.92 | ÷ | 36.12 | 36.12 | = | 268,477 | ÷ | 7,433,038,381 | |
| Jul 27, 2023 | 11.92 | = | 330.72 | ÷ | 27.76 | 27.76 | = | 206,223 | ÷ | 7,429,763,722 | |
| Jul 28, 2022 | 12.38 | = | 276.41 | ÷ | 22.33 | 22.33 | = | 166,542 | ÷ | 7,457,891,872 | |
| Jul 29, 2021 | 15.16 | = | 286.50 | ÷ | 18.89 | 18.89 | = | 141,988 | ÷ | 7,514,891,248 | |
| Jul 31, 2020 | 13.11 | = | 205.01 | ÷ | 15.63 | 15.63 | = | 118,304 | ÷ | 7,567,652,935 | |
| Aug 1, 2019 | 10.30 | = | 138.06 | ÷ | 13.40 | 13.40 | = | 102,330 | ÷ | 7,635,409,400 | |
| Aug 3, 2018 | 10.02 | = | 108.04 | ÷ | 10.79 | 10.79 | = | 82,718 | ÷ | 7,668,217,316 | |
| Aug 2, 2017 | 7.69 | = | 72.26 | ÷ | 9.40 | 9.40 | = | 72,394 | ÷ | 7,702,243,979 | |
| Jul 28, 2016 | 6.08 | = | 56.21 | ÷ | 9.24 | 9.24 | = | 71,997 | ÷ | 7,792,515,573 | |
| Jul 31, 2015 | 4.66 | = | 46.70 | ÷ | 10.01 | 10.01 | = | 80,083 | ÷ | 7,997,980,969 | |
| Jul 31, 2014 | 3.96 | = | 43.16 | ÷ | 10.90 | 10.90 | = | 89,784 | ÷ | 8,239,848,789 | |
| Jul 30, 2013 | 3.36 | = | 31.85 | ÷ | 9.48 | 9.48 | = | 78,944 | ÷ | 8,329,956,402 | |
| Jul 26, 2012 | 3.68 | = | 29.16 | ÷ | 7.92 | 7.92 | = | 66,363 | ÷ | 8,383,396,575 | |
| Jul 28, 2011 | 4.07 | = | 27.72 | ÷ | 6.81 | 6.81 | = | 57,083 | ÷ | 8,378,265,782 | |
| Jul 30, 2010 | 4.84 | = | 25.81 | ÷ | 5.34 | 5.34 | = | 46,175 | ÷ | 8,653,567,331 | |
| Jul 30, 2009 | 5.36 | = | 23.81 | ÷ | 4.44 | 4.44 | = | 39,558 | ÷ | 8,910,673,817 | |
| Jul 31, 2008 | 6.47 | = | 25.72 | ÷ | 3.97 | 3.97 | = | 36,286 | ÷ | 9,130,293,074 | |
| Aug 3, 2007 | 33.73 | = | 111.89 | ÷ | 3.32 | 3.32 | = | 31,097 | ÷ | 9,375,492,496 | |
| Aug 25, 2006 | 19.86 | = | 79.88 | ÷ | 4.02 | 4.02 | = | 40,104 | ÷ | 9,969,991,800 | |
| Aug 26, 2005 | 17.90 | = | 80.38 | ÷ | 4.49 | 4.49 | = | 48,115 | ÷ | 10,712,706,028 |
Based on: 10-K (reporting date: 2026-06-30), 10-K (reporting date: 2025-06-30), 10-K (reporting date: 2024-06-30), 10-K (reporting date: 2023-06-30), 10-K (reporting date: 2022-06-30), 10-K (reporting date: 2021-06-30), 10-K (reporting date: 2020-06-30), 10-K (reporting date: 2019-06-30), 10-K (reporting date: 2018-06-30), 10-K (reporting date: 2017-06-30), 10-K (reporting date: 2016-06-30), 10-K (reporting date: 2015-06-30), 10-K (reporting date: 2014-06-30), 10-K (reporting date: 2013-06-30), 10-K (reporting date: 2012-06-30), 10-K (reporting date: 2011-06-30), 10-K (reporting date: 2010-06-30), 10-K (reporting date: 2009-06-30), 10-K (reporting date: 2008-06-30), 10-K (reporting date: 2007-06-30), 10-K (reporting date: 2006-06-30), 10-K (reporting date: 2005-06-30).
1 US$
2 Data adjusted for splits and stock dividends.
3 Closing price as at the filing date of Microsoft Corp. Annual Report.
The analysis of the price-to-book value (P/BV) ratio reveals four distinct valuation phases characterized by significant volatility and long-term shifts in market sentiment relative to the underlying book value.
- Initial Premium and Peak (2005–2007)
- An initial period of high valuation is observed, with the P/BV ratio rising from 17.90 in 2005 to a peak of 33.73 in 2007. This phase indicates a substantial market premium over the book value per share, which remained relatively low and slightly declined during this window.
- Valuation Compression (2008–2013)
- A sharp contraction in the P/BV ratio occurred starting in 2008, falling from 6.47 to a low of 3.36 by 2013. This compression was driven by a significant reduction in share price during the 2008–2009 period, while the book value per share began a steady upward trajectory, effectively lowering the ratio.
- Expansion and Growth Phase (2014–2021)
- A sustained period of valuation expansion is evident from 2014 to 2021. The P/BV ratio climbed consistently from 3.96 to a peak of 15.16. This trend reflects a rapid acceleration in share price that significantly outpaced the growth of the book value per share, suggesting increased investor confidence and higher growth expectations.
- Recent Moderation and Normalization (2022–2026)
- A downward trend in the P/BV ratio is observed from 2022 onward, concluding at 6.56 by 2026. This decline is attributed to a combination of share price volatility and a substantial increase in book value per share, which grew from 22.33 in 2021 to 59.58 in 2026, thereby normalizing the ratio relative to the asset base.
Overall, the data demonstrates a cyclical pattern where the market valuation has fluctuated between extreme premiums and more conservative multiples, while the book value per share has maintained a consistent long-term growth trajectory.
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Comparison to Competitors
Microsoft Corp., P/BV, long-term trends, comparison to competitors
| Microsoft Corp. | Accenture PLC | Adobe Inc. | AppLovin Corp. | Cadence Design Systems Inc. | CrowdStrike Holdings Inc. | Datadog Inc. | International Business Machines Corp. | Intuit Inc. | Oracle Corp. | Palantir Technologies Inc. | Palo Alto Networks Inc. | Salesforce Inc. | ServiceNow Inc. | Synopsys Inc. | Workday Inc. | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Jul 29, 2026 | 6.56 | — | — | — | — | 24.41 | — | — | — | 11.86 | — | — | 3.01 | — | — | 4.97 |
| Jul 30, 2025 | 11.11 | 4.79 | 10.74 | 65.10 | 14.77 | 23.35 | 11.50 | 6.59 | 9.46 | 28.96 | 43.07 | 16.29 | 4.59 | 9.42 | 3.25 | 7.15 |
| Jul 30, 2024 | 11.71 | 7.98 | 12.61 | 99.97 | 15.15 | 34.61 | 15.94 | 8.75 | 9.47 | 45.25 | 58.42 | 21.15 | 4.94 | 21.71 | 8.48 | 8.63 |
| Jul 27, 2023 | 11.92 | 7.44 | 16.31 | 16.06 | 24.05 | 19.61 | 21.22 | 7.49 | 8.92 | 308.71 | 14.90 | 42.84 | 3.13 | 20.60 | 14.02 | 8.58 |
| Jul 28, 2022 | 12.38 | 7.13 | 11.22 | 2.67 | 18.46 | 42.67 | 17.39 | 5.34 | 7.20 | — | 6.94 | 252.00 | 3.37 | 18.36 | 9.24 | 12.68 |
| Jul 29, 2021 | 15.16 | 11.06 | 15.94 | 7.83 | 13.68 | 48.91 | 48.66 | 5.90 | 15.71 | 41.57 | 10.48 | 71.88 | 4.73 | 30.36 | 10.50 | 18.38 |
| Jul 31, 2020 | 13.11 | 8.51 | 16.53 | — | 14.90 | 14.78 | 31.25 | 5.24 | 17.71 | 14.01 | 28.60 | 20.61 | 4.48 | 40.91 | 7.57 | 15.54 |
| Aug 1, 2019 | 10.30 | 8.15 | 16.03 | — | 9.51 | — | 16.83 | 6.04 | 20.00 | 8.59 | — | 12.91 | 7.66 | 31.48 | 5.16 | 21.26 |
| Aug 3, 2018 | 10.02 | 9.44 | 12.76 | — | 12.50 | — | — | 7.40 | 24.12 | 3.84 | — | 22.92 | 9.93 | 39.03 | 3.68 | 18.62 |
| Aug 2, 2017 | 7.69 | 10.08 | 11.50 | — | 11.49 | — | — | 8.20 | 26.72 | 3.90 | — | 17.37 | 7.78 | 48.15 | 3.99 | 14.93 |
| Jul 28, 2016 | 6.08 | 9.83 | 7.37 | — | 11.10 | — | — | 9.30 | 24.96 | 3.49 | — | 16.91 | 9.45 | 37.73 | 2.81 | 12.36 |
| Jul 31, 2015 | 4.66 | 11.33 | 6.35 | — | 4.61 | — | — | 8.92 | 10.00 | 3.66 | — | 32.11 | 10.57 | 15.42 | 2.20 | 13.98 |
| Jul 31, 2014 | 3.96 | 8.96 | 5.26 | — | 4.06 | — | — | 13.73 | 7.79 | 3.82 | — | 16.81 | 12.79 | 26.77 | 2.12 | 14.17 |
| Jul 30, 2013 | 3.36 | 10.06 | 4.49 | — | 3.74 | — | — | 8.37 | 5.28 | 3.13 | — | 12.19 | 11.74 | 24.35 | 2.19 | 17.51 |
| Jul 26, 2012 | 3.68 | 11.05 | 2.84 | — | 4.38 | — | — | 11.77 | 6.46 | 3.11 | — | 19.49 | 12.73 | 19.86 | 1.93 | — |
| Jul 28, 2011 | 4.07 | 10.33 | 2.66 | — | 7.87 | — | — | 11.39 | 5.46 | 4.12 | — | — | 12.71 | — | 1.84 | — |
| Jul 30, 2010 | 4.84 | 11.06 | 3.29 | — | 9.33 | — | — | 8.57 | 5.05 | 3.52 | — | — | 9.19 | — | 1.93 | — |
| Jul 30, 2009 | 5.36 | 9.61 | 3.68 | — | 14.21 | — | — | 7.26 | 3.50 | 4.29 | — | — | 5.65 | — | 1.71 | — |
| Jul 31, 2008 | 6.47 | 9.15 | 2.34 | — | 10.30 | — | — | 8.61 | 4.76 | 4.66 | — | — | 15.76 | — | 1.68 | — |
| Aug 3, 2007 | 33.73 | 14.69 | 4.24 | — | 1.49 | — | — | 5.56 | 4.74 | 5.96 | — | — | 17.53 | — | 2.67 | — |
| Aug 25, 2006 | 19.86 | 13.85 | 4.39 | — | 3.45 | — | — | 4.96 | 6.56 | 5.28 | — | — | 21.98 | — | 3.34 | — |
| Aug 26, 2005 | 17.90 | 13.33 | 12.48 | — | 2.78 | — | — | 3.80 | 4.73 | 6.31 | — | — | 10.50 | — | 2.57 | — |
Based on: 10-K (reporting date: 2026-06-30), 10-K (reporting date: 2025-06-30), 10-K (reporting date: 2024-06-30), 10-K (reporting date: 2023-06-30), 10-K (reporting date: 2022-06-30), 10-K (reporting date: 2021-06-30), 10-K (reporting date: 2020-06-30), 10-K (reporting date: 2019-06-30), 10-K (reporting date: 2018-06-30), 10-K (reporting date: 2017-06-30), 10-K (reporting date: 2016-06-30), 10-K (reporting date: 2015-06-30), 10-K (reporting date: 2014-06-30), 10-K (reporting date: 2013-06-30), 10-K (reporting date: 2012-06-30), 10-K (reporting date: 2011-06-30), 10-K (reporting date: 2010-06-30), 10-K (reporting date: 2009-06-30), 10-K (reporting date: 2008-06-30), 10-K (reporting date: 2007-06-30), 10-K (reporting date: 2006-06-30), 10-K (reporting date: 2005-06-30).
Comparison to Sector (Software & Services)
Microsoft Corp., P/BV, long-term trends, comparison to sector (software & services)
| Microsoft Corp. | Software & Services | |
|---|---|---|
| Jul 29, 2026 | 6.56 | — |
| Jul 30, 2025 | 11.11 | 10.70 |
| Jul 30, 2024 | 11.71 | 12.08 |
| Jul 27, 2023 | 11.92 | 11.43 |
| Jul 28, 2022 | 12.38 | 10.64 |
| Jul 29, 2021 | 15.16 | 13.62 |
| Jul 31, 2020 | 13.11 | 11.68 |
| Aug 1, 2019 | 10.30 | 10.06 |
| Aug 3, 2018 | 10.02 | 8.75 |
| Aug 2, 2017 | 7.69 | 7.21 |
| Jul 28, 2016 | 6.08 | 6.29 |
| Jul 31, 2015 | 4.66 | 5.39 |
| Jul 31, 2014 | 3.96 | 5.16 |
| Jul 30, 2013 | 3.36 | 4.47 |
| Jul 26, 2012 | 3.68 | 4.89 |
| Jul 28, 2011 | 4.07 | 5.40 |
| Jul 30, 2010 | 4.84 | 5.32 |
| Jul 30, 2009 | 5.36 | 5.46 |
| Jul 31, 2008 | 6.47 | 6.11 |
| Aug 3, 2007 | 33.73 | 15.50 |
| Aug 25, 2006 | 19.86 | 11.43 |
| Aug 26, 2005 | 17.90 | 11.13 |
Based on: 10-K (reporting date: 2026-06-30), 10-K (reporting date: 2025-06-30), 10-K (reporting date: 2024-06-30), 10-K (reporting date: 2023-06-30), 10-K (reporting date: 2022-06-30), 10-K (reporting date: 2021-06-30), 10-K (reporting date: 2020-06-30), 10-K (reporting date: 2019-06-30), 10-K (reporting date: 2018-06-30), 10-K (reporting date: 2017-06-30), 10-K (reporting date: 2016-06-30), 10-K (reporting date: 2015-06-30), 10-K (reporting date: 2014-06-30), 10-K (reporting date: 2013-06-30), 10-K (reporting date: 2012-06-30), 10-K (reporting date: 2011-06-30), 10-K (reporting date: 2010-06-30), 10-K (reporting date: 2009-06-30), 10-K (reporting date: 2008-06-30), 10-K (reporting date: 2007-06-30), 10-K (reporting date: 2006-06-30), 10-K (reporting date: 2005-06-30).
Comparison to Industry (Information Technology)
Microsoft Corp., P/BV, long-term trends, comparison to industry (information technology)
| Microsoft Corp. | Information Technology | |
|---|---|---|
| Jul 29, 2026 | 6.56 | — |
| Jul 30, 2025 | 11.11 | 14.12 |
| Jul 30, 2024 | 11.71 | 13.28 |
| Jul 27, 2023 | 11.92 | 11.48 |
| Jul 28, 2022 | 12.38 | 10.44 |
| Jul 29, 2021 | 15.16 | 12.53 |
| Jul 31, 2020 | 13.11 | 11.10 |
| Aug 1, 2019 | 10.30 | 8.50 |
| Aug 3, 2018 | 10.02 | 7.04 |
| Aug 2, 2017 | 7.69 | 5.49 |
| Jul 28, 2016 | 6.08 | 4.55 |
| Jul 31, 2015 | 4.66 | 4.32 |
| Jul 31, 2014 | 3.96 | 4.38 |
| Jul 30, 2013 | 3.36 | 3.52 |
| Jul 26, 2012 | 3.68 | 3.77 |
| Jul 28, 2011 | 4.07 | 4.01 |
| Jul 30, 2010 | 4.84 | 4.18 |
| Jul 30, 2009 | 5.36 | 4.35 |
| Jul 31, 2008 | 6.47 | 4.03 |
| Aug 3, 2007 | 33.73 | 8.71 |
| Aug 25, 2006 | 19.86 | 7.26 |
| Aug 26, 2005 | 17.90 | 7.44 |
Based on: 10-K (reporting date: 2026-06-30), 10-K (reporting date: 2025-06-30), 10-K (reporting date: 2024-06-30), 10-K (reporting date: 2023-06-30), 10-K (reporting date: 2022-06-30), 10-K (reporting date: 2021-06-30), 10-K (reporting date: 2020-06-30), 10-K (reporting date: 2019-06-30), 10-K (reporting date: 2018-06-30), 10-K (reporting date: 2017-06-30), 10-K (reporting date: 2016-06-30), 10-K (reporting date: 2015-06-30), 10-K (reporting date: 2014-06-30), 10-K (reporting date: 2013-06-30), 10-K (reporting date: 2012-06-30), 10-K (reporting date: 2011-06-30), 10-K (reporting date: 2010-06-30), 10-K (reporting date: 2009-06-30), 10-K (reporting date: 2008-06-30), 10-K (reporting date: 2007-06-30), 10-K (reporting date: 2006-06-30), 10-K (reporting date: 2005-06-30).