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 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: 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 financial data over the given periods reveals several key trends and notable changes in the company's valuation metrics, specifically focusing on the share price, book value per share (BVPS), and price-to-book value (P/BV) ratio.
- Share Price
- The share price exhibited significant volatility over the years. Starting at $80.38 in August 2005, it remained relatively stable around the $79 to $80 range until 2007, where it peaked at $111.89. Subsequently, there was a sharp decline in 2008 to $25.72, and it further dropped slightly in 2009 to $23.81. From 2010 onwards, the share price demonstrated a strong upward trajectory, increasing steadily each year. Notably, between 2018 and 2024, the price surged from $108.04 to $422.92, reflecting substantial market confidence and growth in valuation in recent years.
- Book Value per Share (BVPS)
- The book value per share showed a generally consistent upward trend with some fluctuations. From $4.49 in 2005, it initially declined to a low of $3.32 in 2007 but began increasing thereafter. Between 2008 and 2014, BVPS grew from $3.97 to $10.90, with a minor decrease to $9.24 by 2016. After 2017, the BVPS resumed growth, rising steadily to reach $36.12 by 2024. This indicates an expansion of the company's net asset value on a per-share basis over the medium to long term.
- Price-to-Book Value (P/BV) Ratio
- The P/BV ratio experienced significant fluctuations, reflecting the changes in market valuation relative to book value. It started at a high level of 17.9 in 2005 and escalated sharply to 33.73 in 2007. This was followed by a pronounced decline to a low of 3.36 in 2013, coinciding with the period of lower share prices relative to book value. Thereafter, the P/BV ratio increased steadily, peaking at 15.16 in 2021 before declining to approximately 11.71 by 2024. This pattern suggests varying investor sentiment and market valuation multiples over time, with the ratio's decrease in recent years potentially indicating a closer alignment of share price with underlying book value.
Overall, the data portrays a company that experienced considerable share price volatility in the early years, strong recovery and growth in both share price and book value per share in the more recent periods, accompanied by fluctuations in its market valuation relative to book value. The sustained rise in book value per share alongside increasing share prices suggests fundamental growth, while movements in the P/BV ratio reflect changing market expectations and valuation norms.
Comparison to Competitors
Microsoft Corp., P/BV, long-term trends, comparison to competitors
| Microsoft Corp. | Accenture PLC | Adobe Inc. | Cadence Design Systems Inc. | CrowdStrike Holdings 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 30, 2024 | 11.71 | 7.98 | 12.61 | 15.15 | 34.61 | 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 | 24.05 | 19.61 | 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 | 18.46 | 42.67 | 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 | 13.68 | 48.91 | 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 | 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 | — | 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 | 39.04 | 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 | 37.74 | 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 | 24.36 | 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 | 19.87 | 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: 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 30, 2024 | 11.71 | 11.85 |
| Jul 27, 2023 | 11.92 | 11.36 |
| Jul 28, 2022 | 12.38 | 10.66 |
| Jul 29, 2021 | 15.16 | 13.54 |
| Jul 31, 2020 | 13.11 | 11.60 |
| Aug 1, 2019 | 10.30 | 10.04 |
| 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: 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 30, 2024 | 11.71 | 13.17 |
| Jul 27, 2023 | 11.92 | 11.48 |
| Jul 28, 2022 | 12.38 | 10.47 |
| Jul 29, 2021 | 15.16 | 12.53 |
| Jul 31, 2020 | 13.11 | 11.10 |
| Aug 1, 2019 | 10.30 | 8.51 |
| Aug 3, 2018 | 10.02 | 7.05 |
| Aug 2, 2017 | 7.69 | 5.49 |
| Jul 28, 2016 | 6.08 | 4.56 |
| Jul 31, 2015 | 4.66 | 4.33 |
| Jul 31, 2014 | 3.96 | 4.39 |
| 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 | 4.02 |
| 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: 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).