Stock Analysis on Net

Microsoft Corp. (NASDAQ:MSFT)

$24.99

Price to Sales (P/S)
since 2005

Microsoft Excel

Calculation

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

Microsoft Excel

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.

Share Price Trend
The share price exhibited notable volatility over the period analyzed. Initially, there was a peak around 2007 at approximately $111.89 followed by a significant decline to around $23.81 by 2009. After this low point, the share price showed a consistent upward trajectory, reaching $422.92 by 2024, indicating strong growth over the last decade. The overall pattern reveals recovery from a mid-period trough and sustained appreciation in recent years.
Sales per Share Trajectory
Sales per share increased steadily throughout the entire timeframe. Starting at $3.71 in 2005, there was a continuous rise to $32.98 by 2024. The growth, largely consistent, demonstrates improving revenue generation capability per share, which likely contributed to the positive movement in share price observed in the latter years.
Price-to-Sales (P/S) Ratio Analysis
The P/S ratio displayed considerable fluctuation, reflecting varying investor valuation of sales. Early years showed relatively high P/S ratios (above 20), which sharply dropped to below 4 in 2008 and 2009 during the market downturn. From 2010 onward, the ratio gradually increased from around 3.3 to reach approximately 12.82 by 2024. This suggests increasing market confidence and willingness to pay a higher price multiple for each dollar of sales, consistent with improved market conditions and company performance.
Insight Summary
The data indicates that while the share price was initially volatile, it rebounded strongly in the past decade, supported by steady sales growth. The improving P/S ratio reinforces the notion of enhanced market valuation over time. Overall, the patterns demonstrate a recovery from an earlier period of valuation contraction toward sustained growth and stronger investor confidence in recent years.

Comparison to Competitors

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

Microsoft Excel

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)


Comparison to Industry (Information Technology)