Stock Analysis on Net

Microsoft Corp. (NASDAQ:MSFT)

$24.99

Price to Sales (P/S)
since 2005

Microsoft Excel

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Calculation

Microsoft Corp., P/S, long-term trends, calculation

Microsoft Excel

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 analysis of the financial data over the two decades reveals several notable trends across the share price, sales per share, and price-to-sales (P/S) ratio.

Share Price
The share price experienced volatility with a significant drop from 111.89 US$ in 2007 to around 23.81 US$ by 2009, indicating a sharp decline during this period. Following this low point, the share price showed a consistent upward trajectory, rising steadily from 25.81 US$ in 2010 to reach 513.24 US$ in 2025. This long-term growth illustrates a strong recovery and expansion in market valuation over the years.
Sales Per Share
Sales per share demonstrated a general upward trend throughout the period. Starting at 3.71 US$ in 2005, sales per share rose with moderate fluctuations, reaching 18.9 US$ by 2020 and continuing to increase to 37.9 US$ by 2025. This steady increase signifies overall growth in the company's revenue-generating ability on a per-share basis, particularly accelerating after 2016.
Price-to-Sales (P/S) Ratio
The P/S ratio initially showed high values in 2005 (21.64) and 2007 (20.52), which strongly decreased to below 4 during the financial crisis period in 2008 and 2009. After 2009, the ratio gradually increased from 3.57 in 2010 to fluctuating values between 10.4 and 13.54 during 2022-2025. This upward movement in the P/S ratio indicates a rising market valuation relative to sales, implying growing investor confidence and possibly higher expectations of future growth or profitability.

In summary, the data indicates a recovery from a difficult period around 2008-2009 with both share price and sales per share expanding significantly afterward. The rising P/S ratio over the recent years reinforces the view of enhanced market valuation relative to sales, reflecting improved investor sentiment and potentially stronger financial performance expectations.


Comparison to Competitors

Microsoft Corp., P/S, long-term trends, comparison to competitors

Microsoft Excel

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)


Comparison to Industry (Information Technology)