Price to Earnings (P/E)
since 2005
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- Cash Flow Statement
- Common-Size Income Statement
- Analysis of Short-term (Operating) Activity Ratios
- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Enterprise Value to EBITDA (EV/EBITDA)
- Enterprise Value to FCFF (EV/FCFF)
- Present Value of Free Cash Flow to Equity (FCFE)
- Price to Operating Profit (P/OP) since 2005
- Price to Book Value (P/BV) since 2005
- Aggregate Accruals
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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, 2024 | = | ÷ | = | ÷ | |||||||
| Jul 27, 2023 | = | ÷ | = | ÷ | |||||||
| Jul 28, 2022 | = | ÷ | = | ÷ | |||||||
| Jul 29, 2021 | = | ÷ | = | ÷ | |||||||
| Jul 31, 2020 | = | ÷ | = | ÷ | |||||||
| Aug 1, 2019 | = | ÷ | = | ÷ | |||||||
| Aug 3, 2018 | = | ÷ | = | ÷ | |||||||
| Aug 2, 2017 | = | ÷ | = | ÷ | |||||||
| Jul 28, 2016 | = | ÷ | = | ÷ | |||||||
| Jul 31, 2015 | = | ÷ | = | ÷ | |||||||
| Jul 31, 2014 | = | ÷ | = | ÷ | |||||||
| Jul 30, 2013 | = | ÷ | = | ÷ | |||||||
| Jul 26, 2012 | = | ÷ | = | ÷ | |||||||
| Jul 28, 2011 | = | ÷ | = | ÷ | |||||||
| Jul 30, 2010 | = | ÷ | = | ÷ | |||||||
| Jul 30, 2009 | = | ÷ | = | ÷ | |||||||
| Jul 31, 2008 | = | ÷ | = | ÷ | |||||||
| Aug 3, 2007 | = | ÷ | = | ÷ | |||||||
| Aug 25, 2006 | = | ÷ | = | ÷ | |||||||
| Aug 26, 2005 | = | ÷ | = | ÷ |
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 reveals several distinct trends over the examined periods.
- Share Price
- The share price exhibited considerable volatility, with an initial value around $80.38 in 2005, followed by a significant decline to lows near $23.81 in 2009. From 2010 onward, a consistent upward trajectory is noted, accelerating notably after 2017, reaching an impressive peak of $422.92 by 2024. The overall trend illustrates strong growth in market valuation, especially in the last decade.
- Earnings Per Share (EPS)
- EPS showed relatively stable growth initially, with moderate fluctuations between 1.14 and 2.76 in the early years. A dip occurred around 2012 and 2013, where EPS briefly declined to approximately 2.03 and 2.62. From 2014 onwards, there was a marked upward trend, with EPS increasing sharply to 11.86 by 2024. This indicates improved profitability and operational efficiency over time.
- Price-to-Earnings (P/E) Ratio
- The P/E ratio fluctuated considerably, starting at very high levels exceeding 70 in 2005 and 2007, before dropping sharply to around 13.28 in 2008. The ratio remained generally lower through the early 2010s, suggesting a more conservative market valuation relative to earnings during that period. Notably, there was a spike to 50 in 2018, followed by volatility with values between 26 and 36 from 2019 to 2024. These variations suggest changing investor sentiment and valuation benchmarks throughout the periods analyzed.
Overall, the data shows a recovery and significant growth phase after the late 2000s lows for both share price and earnings, coupled with periods of fluctuating market valuation as indicated by the P/E ratio. The consistent increase in EPS and share price in recent years points towards sustained operational success and increased investor confidence.
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. | 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 | ||||||||||||||
| Jul 27, 2023 | ||||||||||||||
| Jul 28, 2022 | ||||||||||||||
| Jul 29, 2021 | ||||||||||||||
| Jul 31, 2020 | ||||||||||||||
| Aug 1, 2019 | ||||||||||||||
| Aug 3, 2018 | ||||||||||||||
| Aug 2, 2017 | ||||||||||||||
| Jul 28, 2016 | ||||||||||||||
| Jul 31, 2015 | ||||||||||||||
| Jul 31, 2014 | ||||||||||||||
| Jul 30, 2013 | ||||||||||||||
| Jul 26, 2012 | ||||||||||||||
| Jul 28, 2011 | ||||||||||||||
| Jul 30, 2010 | ||||||||||||||
| Jul 30, 2009 | ||||||||||||||
| Jul 31, 2008 | ||||||||||||||
| Aug 3, 2007 | ||||||||||||||
| Aug 25, 2006 | ||||||||||||||
| Aug 26, 2005 |
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/E, long-term trends, comparison to sector (software & services)
| Microsoft Corp. | Software & Services | |
|---|---|---|
| Jul 30, 2024 | ||
| Jul 27, 2023 | ||
| Jul 28, 2022 | ||
| Jul 29, 2021 | ||
| Jul 31, 2020 | ||
| Aug 1, 2019 | ||
| Aug 3, 2018 | ||
| Aug 2, 2017 | ||
| Jul 28, 2016 | ||
| Jul 31, 2015 | ||
| Jul 31, 2014 | ||
| Jul 30, 2013 | ||
| Jul 26, 2012 | ||
| Jul 28, 2011 | ||
| Jul 30, 2010 | ||
| Jul 30, 2009 | ||
| Jul 31, 2008 | ||
| Aug 3, 2007 | ||
| Aug 25, 2006 | ||
| Aug 26, 2005 |
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/E, long-term trends, comparison to industry (information technology)
| Microsoft Corp. | Information Technology | |
|---|---|---|
| Jul 30, 2024 | ||
| Jul 27, 2023 | ||
| Jul 28, 2022 | ||
| Jul 29, 2021 | ||
| Jul 31, 2020 | ||
| Aug 1, 2019 | ||
| Aug 3, 2018 | ||
| Aug 2, 2017 | ||
| Jul 28, 2016 | ||
| Jul 31, 2015 | ||
| Jul 31, 2014 | ||
| Jul 30, 2013 | ||
| Jul 26, 2012 | ||
| Jul 28, 2011 | ||
| Jul 30, 2010 | ||
| Jul 30, 2009 | ||
| Jul 31, 2008 | ||
| Aug 3, 2007 | ||
| Aug 25, 2006 | ||
| Aug 26, 2005 |
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).