Price to Earnings (P/E)
since 2005
Calculation
Microsoft Corp., P/E, long-term trends, calculation
| P/E | = | Share price1, 2, 3 | ÷ | Earnings per share1 (EPS) | EPS1 | = | Net income1 (in millions) |
÷ | No. shares of common stock outstanding2 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Jul 30, 2025 | 37.46 | = | 513.24 | ÷ | 13.70 | 13.70 | = | 101,832 | ÷ | 7,433,166,379 | |
| Jul 30, 2024 | 35.67 | = | 422.92 | ÷ | 11.86 | 11.86 | = | 88,136 | ÷ | 7,433,038,381 | |
| Jul 27, 2023 | 33.96 | = | 330.72 | ÷ | 9.74 | 9.74 | = | 72,361 | ÷ | 7,429,763,722 | |
| Jul 28, 2022 | 28.34 | = | 276.41 | ÷ | 9.75 | 9.75 | = | 72,738 | ÷ | 7,457,891,872 | |
| Jul 29, 2021 | 35.14 | = | 286.50 | ÷ | 8.15 | 8.15 | = | 61,271 | ÷ | 7,514,891,248 | |
| Jul 31, 2020 | 35.04 | = | 205.01 | ÷ | 5.85 | 5.85 | = | 44,281 | ÷ | 7,567,652,935 | |
| Aug 1, 2019 | 26.86 | = | 138.06 | ÷ | 5.14 | 5.14 | = | 39,240 | ÷ | 7,635,409,400 | |
| Aug 3, 2018 | 50.00 | = | 108.04 | ÷ | 2.16 | 2.16 | = | 16,571 | ÷ | 7,668,217,316 | |
| Aug 2, 2017 | 26.25 | = | 72.26 | ÷ | 2.75 | 2.75 | = | 21,204 | ÷ | 7,702,243,979 | |
| Jul 28, 2016 | 26.08 | = | 56.21 | ÷ | 2.16 | 2.16 | = | 16,798 | ÷ | 7,792,515,573 | |
| Jul 31, 2015 | 30.63 | = | 46.70 | ÷ | 1.52 | 1.52 | = | 12,193 | ÷ | 7,997,980,969 | |
| Jul 31, 2014 | 16.11 | = | 43.16 | ÷ | 2.68 | 2.68 | = | 22,074 | ÷ | 8,239,848,789 | |
| Jul 30, 2013 | 12.14 | = | 31.85 | ÷ | 2.62 | 2.62 | = | 21,863 | ÷ | 8,329,956,402 | |
| Jul 26, 2012 | 14.40 | = | 29.16 | ÷ | 2.03 | 2.03 | = | 16,978 | ÷ | 8,383,396,575 | |
| Jul 28, 2011 | 10.03 | = | 27.72 | ÷ | 2.76 | 2.76 | = | 23,150 | ÷ | 8,378,265,782 | |
| Jul 30, 2010 | 11.91 | = | 25.81 | ÷ | 2.17 | 2.17 | = | 18,760 | ÷ | 8,653,567,331 | |
| Jul 30, 2009 | 14.56 | = | 23.81 | ÷ | 1.64 | 1.64 | = | 14,569 | ÷ | 8,910,673,817 | |
| Jul 31, 2008 | 13.28 | = | 25.72 | ÷ | 1.94 | 1.94 | = | 17,681 | ÷ | 9,130,293,074 | |
| Aug 3, 2007 | 74.58 | = | 111.89 | ÷ | 1.50 | 1.50 | = | 14,065 | ÷ | 9,375,492,496 | |
| Aug 25, 2006 | 63.21 | = | 79.88 | ÷ | 1.26 | 1.26 | = | 12,599 | ÷ | 9,969,991,800 | |
| Aug 26, 2005 | 70.27 | = | 80.38 | ÷ | 1.14 | 1.14 | = | 12,254 | ÷ | 10,712,706,028 |
Based on: 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 data reveals significant fluctuations and trends in the share price, earnings per share (EPS), and price-to-earnings (P/E) ratio over the analyzed time period.
- Share Price (US$)
- The share price exhibited notable volatility with a steep decline from 111.89 in 2007 to around 23.81 by mid-2009, indicating a challenging period likely influenced by broader market conditions. Following this trough, there was a consistent upward trajectory from 2010 onward, accelerating particularly after 2017, with the price reaching a peak of 513.24 in 2025. This represents a substantial appreciation, suggesting strong investor confidence and company growth during the latter years.
- Earnings per Share (EPS) (US$)
- EPS demonstrated a general upward trend over the years with some fluctuations. Initially, EPS grew steadily from 1.14 in 2005 to a peak of 2.76 in 2011 but then exhibited some variability, including a decline around 2012 to 2014. However, from 2015 onward, EPS showed a notable increase, reaching 13.7 in 2025. This strong growth in earnings indicates improved profitability and operational performance, especially in the most recent years.
- Price-to-Earnings (P/E) Ratio
- The P/E ratio displayed considerable variation. It was initially very high, peaking at 74.58 in 2007 during the period of elevated share prices but declining sharply to values around 10 to 16 during 2008 to 2011, reflecting either undervaluation or earnings growth catching up. Subsequently, the P/E ratio stabilized mostly in the 20s and 30s range, with a notable spike to 50 in 2018, suggesting market expectations of future growth. In the later years, the ratio remained in the mid-30s, indicating sustained market valuation in line with increasing earnings.
Overall, the analysis reveals that after an initial volatility phase, the company experienced strong earnings growth and share price appreciation, supported by stable market valuation ratios. The rising EPS coupled with the increasing share price implies robust financial health and positive market sentiment through the later periods.
Comparison to Competitors
Microsoft Corp., P/E, long-term trends, comparison to competitors
| Microsoft Corp. | Accenture PLC | Adobe Inc. | Cadence Design Systems Inc. | CrowdStrike Holdings Inc. | Datadog Inc. | Fair Isaac Corp. | 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, 2025 | 37.46 | — | — | — | — | — | — | — | — | 47.60 | — | — | 45.28 | — | — | 122.85 |
| Jul 30, 2024 | 35.67 | 31.07 | 31.98 | 67.09 | 892.67 | 235.49 | 99.26 | 39.68 | 58.94 | 37.63 | 632.38 | 42.42 | 71.24 | 146.40 | 33.69 | 50.53 |
| Jul 27, 2023 | 33.96 | 27.81 | 49.64 | 78.64 | — | 884.97 | 54.13 | 22.50 | 64.61 | 38.96 | 246.77 | 170.35 | 879.57 | 90.80 | 70.08 | — |
| Jul 28, 2022 | 28.34 | 22.93 | 33.15 | 59.70 | — | — | 29.67 | 71.56 | 57.31 | 26.85 | — | — | 135.68 | 284.28 | 51.76 | 1,957.29 |
| Jul 29, 2021 | 35.14 | 36.58 | 48.90 | 53.88 | — | — | 27.12 | 19.40 | 75.17 | 15.84 | — | — | 48.20 | 487.70 | 73.37 | — |
| Jul 31, 2020 | 35.04 | 28.32 | 41.69 | 62.89 | — | — | 56.83 | 19.30 | 49.52 | 16.69 | — | — | 1,204.70 | 978.47 | 55.92 | — |
| Aug 1, 2019 | 26.86 | 24.58 | 57.17 | 20.22 | — | — | 49.99 | 13.35 | 48.17 | 16.89 | — | — | 107.70 | 106.89 | 39.55 | — |
| Aug 3, 2018 | 50.00 | 24.10 | 46.11 | 46.59 | — | — | 39.92 | 14.25 | 46.88 | 45.90 | — | — | 731.11 | — | 29.60 | — |
| Aug 2, 2017 | 26.25 | 26.18 | 57.41 | 55.67 | — | — | 35.95 | 25.07 | 37.26 | 22.49 | — | — | 324.94 | — | 95.81 | — |
| Jul 28, 2016 | 26.08 | 18.07 | 46.80 | 40.53 | — | — | 32.00 | 14.29 | 29.60 | 18.53 | — | — | — | — | 33.71 | — |
| Jul 31, 2015 | 30.63 | 22.75 | 70.59 | 25.14 | — | — | 31.32 | 9.65 | 63.89 | 17.92 | — | — | — | — | 30.45 | — |
| Jul 31, 2014 | 16.11 | 17.46 | 132.73 | 34.03 | — | — | 23.93 | 13.55 | 26.44 | 16.33 | — | — | — | — | 25.00 | — |
| Jul 30, 2013 | 12.14 | 15.20 | 104.21 | 26.30 | — | — | 21.77 | 11.58 | 21.73 | 12.78 | — | — | — | — | 24.68 | — |
| Jul 26, 2012 | 14.40 | 17.95 | 22.73 | 9.11 | — | — | 15.63 | 13.37 | 22.37 | 13.61 | — | 6,057.94 | — | — | 26.53 | — |
| Jul 28, 2011 | 10.03 | 17.60 | 18.49 | 44.80 | — | — | 17.14 | 14.47 | 22.53 | 19.17 | — | — | 251.73 | — | 17.51 | — |
| Jul 30, 2010 | 11.91 | 17.62 | 22.05 | 20.39 | — | — | 14.55 | 13.32 | 24.82 | 17.66 | — | — | 118.88 | — | 17.09 | — |
| Jul 30, 2009 | 14.56 | 17.45 | 46.62 | — | — | — | 14.37 | 12.24 | 20.01 | 19.25 | — | — | 87.39 | — | 18.86 | — |
| Jul 31, 2008 | 13.28 | 13.74 | 11.84 | — | — | — | 7.84 | 9.40 | 20.68 | 19.44 | — | — | 388.13 | — | 13.55 | — |
| Aug 3, 2007 | 74.58 | 24.38 | 27.23 | 10.43 | — | — | 18.13 | 15.20 | 21.92 | 23.58 | — | — | 10,271.10 | — | 29.39 | — |
| Aug 25, 2006 | 63.21 | 26.95 | 44.72 | 41.15 | — | — | 23.17 | 14.90 | 27.35 | 23.43 | — | — | 151.60 | — | 156.86 | — |
| Aug 26, 2005 | 70.27 | 24.06 | 38.61 | 103.88 | — | — | 21.23 | 15.85 | 21.02 | 23.70 | — | — | 207.38 | — | — | — |
Based on: 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/E, long-term trends, comparison to sector (software & services)
| Microsoft Corp. | Software & Services | |
|---|---|---|
| Jul 30, 2025 | 37.46 | — |
| Jul 30, 2024 | 35.67 | 42.01 |
| Jul 27, 2023 | 33.96 | 40.33 |
| Jul 28, 2022 | 28.34 | 34.64 |
| Jul 29, 2021 | 35.14 | 37.89 |
| Jul 31, 2020 | 35.04 | 38.75 |
| Aug 1, 2019 | 26.86 | 28.36 |
| Aug 3, 2018 | 50.00 | 43.29 |
| Aug 2, 2017 | 26.25 | 30.29 |
| Jul 28, 2016 | 26.08 | 23.98 |
| Jul 31, 2015 | 30.63 | 23.40 |
| Jul 31, 2014 | 16.11 | 18.37 |
| Jul 30, 2013 | 12.14 | 14.10 |
| Jul 26, 2012 | 14.40 | 14.97 |
| Jul 28, 2011 | 10.03 | 13.92 |
| Jul 30, 2010 | 11.91 | 14.04 |
| Jul 30, 2009 | 14.56 | 15.17 |
| Jul 31, 2008 | 13.28 | 13.86 |
| Aug 3, 2007 | 74.58 | 43.59 |
| Aug 25, 2006 | 63.21 | 39.53 |
| Aug 26, 2005 | 70.27 | 44.56 |
Based on: 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/E, long-term trends, comparison to industry (information technology)
| Microsoft Corp. | Information Technology | |
|---|---|---|
| Jul 30, 2025 | 37.46 | — |
| Jul 30, 2024 | 35.67 | 45.22 |
| Jul 27, 2023 | 33.96 | 36.08 |
| Jul 28, 2022 | 28.34 | 26.90 |
| Jul 29, 2021 | 35.14 | 29.73 |
| Jul 31, 2020 | 35.04 | 31.25 |
| Aug 1, 2019 | 26.86 | 23.31 |
| Aug 3, 2018 | 50.00 | 23.20 |
| Aug 2, 2017 | 26.25 | 23.46 |
| Jul 28, 2016 | 26.08 | 19.50 |
| Jul 31, 2015 | 30.63 | 16.54 |
| Jul 31, 2014 | 16.11 | 17.12 |
| Jul 30, 2013 | 12.14 | 14.15 |
| Jul 26, 2012 | 14.40 | 14.37 |
| Jul 28, 2011 | 10.03 | 13.74 |
| Jul 30, 2010 | 11.91 | 14.99 |
| Jul 30, 2009 | 14.56 | 21.44 |
| Jul 31, 2008 | 13.28 | 15.67 |
| Aug 3, 2007 | 74.58 | 36.25 |
| Aug 25, 2006 | 63.21 | 31.93 |
| Aug 26, 2005 | 70.27 | 33.62 |
Based on: 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).