Price to Sales (P/S)
since 2005
Calculation
Microsoft Corp., P/S, long-term trends, calculation
| P/S | = | Share price1, 2, 3 | ÷ | Sales per share1 | Sales per share1 | = | Revenue1 (in millions) |
÷ | No. shares of common stock outstanding2 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Jul 29, 2026 | 8.74 | = | 390.54 | ÷ | 44.69 | 44.69 | = | 331,839 | ÷ | 7,425,545,491 | |
| Jul 30, 2025 | 13.54 | = | 513.24 | ÷ | 37.90 | 37.90 | = | 281,724 | ÷ | 7,433,166,379 | |
| Jul 30, 2024 | 12.82 | = | 422.92 | ÷ | 32.98 | 32.98 | = | 245,122 | ÷ | 7,433,038,381 | |
| Jul 27, 2023 | 11.60 | = | 330.72 | ÷ | 28.52 | 28.52 | = | 211,915 | ÷ | 7,429,763,722 | |
| Jul 28, 2022 | 10.40 | = | 276.41 | ÷ | 26.59 | 26.59 | = | 198,270 | ÷ | 7,457,891,872 | |
| Jul 29, 2021 | 12.81 | = | 286.50 | ÷ | 22.37 | 22.37 | = | 168,088 | ÷ | 7,514,891,248 | |
| Jul 31, 2020 | 10.85 | = | 205.01 | ÷ | 18.90 | 18.90 | = | 143,015 | ÷ | 7,567,652,935 | |
| Aug 1, 2019 | 8.38 | = | 138.06 | ÷ | 16.48 | 16.48 | = | 125,843 | ÷ | 7,635,409,400 | |
| Aug 3, 2018 | 7.51 | = | 108.04 | ÷ | 14.39 | 14.39 | = | 110,360 | ÷ | 7,668,217,316 | |
| Aug 2, 2017 | 6.19 | = | 72.26 | ÷ | 11.68 | 11.68 | = | 89,950 | ÷ | 7,702,243,979 | |
| Jul 28, 2016 | 5.13 | = | 56.21 | ÷ | 10.95 | 10.95 | = | 85,320 | ÷ | 7,792,515,573 | |
| Jul 31, 2015 | 3.99 | = | 46.70 | ÷ | 11.70 | 11.70 | = | 93,580 | ÷ | 7,997,980,969 | |
| Jul 31, 2014 | 4.10 | = | 43.16 | ÷ | 10.54 | 10.54 | = | 86,833 | ÷ | 8,239,848,789 | |
| Jul 30, 2013 | 3.41 | = | 31.85 | ÷ | 9.35 | 9.35 | = | 77,849 | ÷ | 8,329,956,402 | |
| Jul 26, 2012 | 3.32 | = | 29.16 | ÷ | 8.79 | 8.79 | = | 73,723 | ÷ | 8,383,396,575 | |
| Jul 28, 2011 | 3.32 | = | 27.72 | ÷ | 8.35 | 8.35 | = | 69,943 | ÷ | 8,378,265,782 | |
| Jul 30, 2010 | 3.57 | = | 25.81 | ÷ | 7.22 | 7.22 | = | 62,484 | ÷ | 8,653,567,331 | |
| Jul 30, 2009 | 3.63 | = | 23.81 | ÷ | 6.56 | 6.56 | = | 58,437 | ÷ | 8,910,673,817 | |
| Jul 31, 2008 | 3.89 | = | 25.72 | ÷ | 6.62 | 6.62 | = | 60,420 | ÷ | 9,130,293,074 | |
| Aug 3, 2007 | 20.52 | = | 111.89 | ÷ | 5.45 | 5.45 | = | 51,122 | ÷ | 9,375,492,496 | |
| Aug 25, 2006 | 17.98 | = | 79.88 | ÷ | 4.44 | 4.44 | = | 44,282 | ÷ | 9,969,991,800 | |
| Aug 26, 2005 | 21.64 | = | 80.38 | ÷ | 3.71 | 3.71 | = | 39,788 | ÷ | 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 Price to Sales (P/S) ratio exhibits three distinct chronological phases: a period of initial high valuation, a decade of significant compression, and a subsequent cycle of expansion followed by a recent correction.
- Valuation Compression (2008–2013)
- A sharp contraction in the P/S ratio occurred between 2007 and 2008, falling from 20.52 to 3.89. This compression persisted through 2013, with the ratio stabilizing between 3.32 and 3.41. During this interval, share prices remained suppressed despite a steady increase in sales per share, indicating a substantial market devaluation of the company's revenue streams.
- Expansion and Re-rating (2014–2021)
- A sustained upward trend in valuation began in 2014, with the P/S ratio rising from 4.10 to 12.81 by 2021. This period was characterized by share price appreciation that significantly outpaced the growth in sales per share, reflecting an increasing premium attributed to each dollar of revenue generated.
- Peak Valuation and Recent Correction (2022–2026)
- Valuations remained elevated between 2022 and 2025, reaching a maximum P/S ratio of 13.54. However, a notable correction is evident by 2026, where the P/S ratio declined to 8.74. This decline is driven by a reduction in share price from 513.24 to 390.54, occurring even as sales per share continued to grow to 44.69.
Overall, while sales per share have maintained a consistent growth trajectory from 3.71 in 2005 to 44.69 in 2026, the market's valuation of those sales has been volatile. The progression indicates a shift from an initial high-premium state to a period of extreme undervaluation, followed by a modern era of expanded multiples that have recently begun to normalize.
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Comparison to Competitors
Microsoft Corp., P/S, 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 | 8.74 | — | — | — | — | 22.46 | — | — | — | 7.49 | — | — | 4.29 | — | — | 4.06 |
| Jul 30, 2025 | 13.54 | 2.15 | 5.25 | 25.35 | 15.27 | 19.37 | 12.53 | 3.19 | 9.90 | 10.32 | 71.09 | 13.82 | 7.40 | 9.20 | 13.05 | 7.65 |
| Jul 30, 2024 | 12.82 | 3.48 | 8.27 | 23.14 | 15.26 | 26.10 | 16.12 | 3.81 | 10.72 | 7.44 | 102.00 | 13.62 | 8.45 | 18.99 | 12.45 | 9.61 |
| Jul 27, 2023 | 11.60 | 2.98 | 13.88 | 6.14 | 20.02 | 12.81 | 20.19 | 2.73 | 10.72 | 6.63 | 23.27 | 10.87 | 5.84 | 17.52 | 14.75 | 7.71 |
| Jul 28, 2022 | 10.40 | 2.56 | 8.95 | 1.80 | 14.23 | 30.15 | 14.64 | 1.94 | 9.30 | 4.25 | 9.34 | 9.62 | 7.40 | 12.75 | 10.03 | 11.19 |
| Jul 29, 2021 | 12.81 | 4.28 | 14.94 | 5.99 | 12.55 | 48.70 | 49.25 | 1.94 | 16.09 | 5.38 | 15.58 | 10.72 | 9.24 | 19.02 | 13.22 | 13.95 |
| Jul 31, 2020 | 10.85 | 3.26 | 17.04 | — | 13.85 | 22.78 | 49.57 | 1.47 | 11.78 | 4.33 | 39.86 | 6.66 | 8.88 | 25.66 | 10.08 | 10.65 |
| Aug 1, 2019 | 8.38 | 2.72 | 15.11 | — | 8.56 | — | 36.28 | 1.63 | 11.05 | 4.74 | — | 7.06 | 9.00 | 19.36 | 6.27 | 14.75 |
| Aug 3, 2018 | 7.51 | 2.35 | 13.23 | — | 7.53 | — | — | 1.56 | 9.52 | 4.41 | — | 9.75 | 8.89 | 16.63 | 4.10 | 13.73 |
| Aug 2, 2017 | 6.19 | 2.45 | 13.32 | — | 5.85 | — | — | 1.82 | 6.99 | 5.56 | — | 7.49 | 6.96 | 14.55 | 4.80 | 11.06 |
| Jul 28, 2016 | 5.13 | 2.13 | 9.34 | — | 4.53 | — | — | 2.12 | 6.17 | 4.45 | — | 9.69 | 7.09 | 10.50 | 3.71 | 12.08 |
| Jul 31, 2015 | 3.99 | 2.11 | 9.27 | — | 3.73 | — | — | 1.56 | 5.56 | 4.66 | — | 16.88 | 7.82 | 8.69 | 3.07 | 19.97 |
| Jul 31, 2014 | 4.10 | 1.61 | 8.59 | — | 3.42 | — | — | 1.76 | 5.32 | 4.67 | — | 13.17 | 9.54 | 16.81 | 3.15 | 35.87 |
| Jul 30, 2013 | 3.41 | 1.64 | 7.45 | — | 2.96 | — | — | 1.91 | 4.47 | 3.75 | — | 8.38 | 8.92 | 22.61 | 3.12 | 37.91 |
| Jul 26, 2012 | 3.32 | 1.54 | 4.30 | — | 3.02 | — | — | 2.12 | 4.27 | 3.66 | — | 17.50 | 8.91 | 19.84 | 2.76 | — |
| Jul 28, 2011 | 3.32 | 1.47 | 3.65 | — | 2.81 | — | — | 2.15 | 3.71 | 4.60 | — | — | 9.79 | — | 2.52 | — |
| Jul 30, 2010 | 3.57 | 1.36 | 4.50 | — | 2.76 | — | — | 1.98 | 4.12 | 4.04 | — | — | 7.35 | — | 2.93 | — |
| Jul 30, 2009 | 3.63 | 1.20 | 6.12 | — | 1.81 | — | — | 1.72 | 2.81 | 4.63 | — | — | 3.52 | — | 2.33 | — |
| Jul 31, 2008 | 3.89 | 0.92 | 2.88 | — | 1.01 | — | — | 1.12 | 3.21 | 4.79 | — | — | 9.52 | — | 1.93 | — |
| Aug 3, 2007 | 20.52 | 1.41 | 6.24 | — | 1.91 | — | — | 1.60 | 3.61 | 5.60 | — | — | 9.94 | — | 3.16 | — |
| Aug 25, 2006 | 17.98 | 1.44 | 8.78 | — | 3.95 | — | — | 1.55 | 4.87 | 5.51 | — | — | 13.93 | — | 3.54 | — |
| Aug 26, 2005 | 21.64 | 1.32 | 11.84 | — | 3.86 | — | — | 1.38 | 3.94 | 5.80 | — | — | 8.64 | — | 3.15 | — |
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/S, long-term trends, comparison to sector (software & services)
| Microsoft Corp. | Software & Services | |
|---|---|---|
| Jul 29, 2026 | 8.74 | — |
| Jul 30, 2025 | 13.54 | 10.41 |
| Jul 30, 2024 | 12.82 | 10.40 |
| Jul 27, 2023 | 11.60 | 8.78 |
| Jul 28, 2022 | 10.40 | 7.45 |
| Jul 29, 2021 | 12.81 | 9.54 |
| Jul 31, 2020 | 10.85 | 7.74 |
| Aug 1, 2019 | 8.38 | 6.11 |
| Aug 3, 2018 | 7.51 | 5.24 |
| Aug 2, 2017 | 6.19 | 4.65 |
| Jul 28, 2016 | 5.13 | 3.95 |
| Jul 31, 2015 | 3.99 | 3.41 |
| Jul 31, 2014 | 4.10 | 3.34 |
| Jul 30, 2013 | 3.41 | 2.89 |
| Jul 26, 2012 | 3.32 | 2.79 |
| Jul 28, 2011 | 3.32 | 2.85 |
| Jul 30, 2010 | 3.57 | 2.73 |
| Jul 30, 2009 | 3.63 | 2.61 |
| Jul 31, 2008 | 3.89 | 2.31 |
| Aug 3, 2007 | 20.52 | 6.95 |
| Aug 25, 2006 | 17.98 | 6.20 |
| Aug 26, 2005 | 21.64 | 6.73 |
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/S, long-term trends, comparison to industry (information technology)
| Microsoft Corp. | Information Technology | |
|---|---|---|
| Jul 29, 2026 | 8.74 | — |
| Jul 30, 2025 | 13.54 | 10.47 |
| Jul 30, 2024 | 12.82 | 9.33 |
| Jul 27, 2023 | 11.60 | 7.33 |
| Jul 28, 2022 | 10.40 | 6.01 |
| Jul 29, 2021 | 12.81 | 7.00 |
| Jul 31, 2020 | 10.85 | 6.12 |
| Aug 1, 2019 | 8.38 | 4.62 |
| Aug 3, 2018 | 7.51 | 4.31 |
| Aug 2, 2017 | 6.19 | 4.19 |
| Jul 28, 2016 | 5.13 | 3.47 |
| Jul 31, 2015 | 3.99 | 3.04 |
| Jul 31, 2014 | 4.10 | 3.32 |
| Jul 30, 2013 | 3.41 | 2.86 |
| Jul 26, 2012 | 3.32 | 2.89 |
| Jul 28, 2011 | 3.32 | 2.84 |
| Jul 30, 2010 | 3.57 | 3.03 |
| Jul 30, 2009 | 3.63 | 3.12 |
| Jul 31, 2008 | 3.89 | 2.39 |
| Aug 3, 2007 | 20.52 | 5.74 |
| Aug 25, 2006 | 17.98 | 5.19 |
| Aug 26, 2005 | 21.64 | 5.61 |
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).