Valuation ratios measure the quantity of an asset or flaw (e.g., earnings) associated with ownership of a specified claim (e.g., a share of ownership of the enterprise).

Current Valuation Ratios
Historical Valuation Ratios (Summary)
Price to Earnings (P/E)
Price to Operating Profit (P/OP)
Price to Sales (P/S)
Price to Book Value (P/BV)

Microsoft Corp., current price multiples

	Microsoft Corp.		Accenture PLC	Adobe Inc.	Fidelity National Information Services Inc.	International Business Machines Corp.	Intuit Inc.	Mastercard Inc.	Oracle Corp.	PayPal Holdings Inc.	Salesforce Inc.	ServiceNow Inc.	Visa Inc.		Software & Services		Information Technology
Selected Financial Data
Current share price (P)
No. shares of common stock outstanding
Growth rate (g)

Earnings per share (EPS)
Next year expected EPS
Operating profit per share
Sales per share
Book value per share (BVPS)
Valuation Ratios (Price Multiples)
Price to earnings (P/E)
Price to next year expected earnings
Price-earnings-growth (PEG)
Price to operating profit (P/OP)
Price to sales (P/S)
Price to book value (P/BV)

Based on: 10-K (reporting date: 2022-06-30).

If the company price multiple is lower then the price multiple of benchmark then company stock is relatively undervalued.
Otherwise, if the company price multiple is higher then the price multiple of benchmark then company stock is relatively overvalued.

Microsoft Corp., historical price multiples

		Jun 30, 2022	Jun 30, 2021	Jun 30, 2020	Jun 30, 2019	Jun 30, 2018	Jun 30, 2017
	Price to earnings (P/E)
	Price to operating profit (P/OP)
	Price to sales (P/S)
	Price to book value (P/BV)

Based on: 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).

Valuation ratio	Description	The company
P/E ratio	The P/E ratio tells analyst how much an investor in common stock pays per dollar of current earnings.	Microsoft Corp. P/E ratio increased from 2020 to 2021 but then decreased significantly from 2021 to 2022.
P/OP ratio	Because P/E ratio is calculated using net income, the ratio can be sensitive to nonrecurring earnings and capital structure, analysts may use price to operating profit.	Microsoft Corp. P/OP ratio increased from 2020 to 2021 but then decreased significantly from 2021 to 2022.
P/S ratio	An rationale for the P/S ratio is that sales, as the top line in an income statement, are generally less subject to distortion or manipulation than other fundamentals such as EPS or book value. Sales are also more stable than earnings and never negative.	Microsoft Corp. P/S ratio increased from 2020 to 2021 but then decreased significantly from 2021 to 2022.
P/BV ratio	The P/BV ratio is interpreted as an indicator of market judgment about the relationship between a company required rate of return and its actual rate of return.	Microsoft Corp. P/BV ratio increased from 2020 to 2021 but then decreased significantly from 2021 to 2022.

Microsoft Corp., historical P/E calculation, comparison to benchmarks

		Jun 30, 2022	Jun 30, 2021	Jun 30, 2020	Jun 30, 2019	Jun 30, 2018	Jun 30, 2017
	No. shares of common stock outstanding¹
	Selected Financial Data (US$)
	Net income (in millions)
	Earnings per share (EPS)²
	Share price^1, 3
	Valuation Ratio
	P/E ratio⁴
	Benchmarks
	P/E Ratio, Competitors⁵
	Accenture PLC
	Adobe Inc.
	Fidelity National Information Services Inc.
	International Business Machines Corp.
	Intuit Inc.
	Mastercard Inc.
	Oracle Corp.
	PayPal Holdings Inc.
	Salesforce Inc.
	ServiceNow Inc.
	Visa Inc.
	P/E Ratio, Sector
	Software & Services
	P/E Ratio, Industry
	Information Technology

Based on: 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).

¹ Data adjusted for splits and stock dividends.

² 2022 Calculation
EPS = Net income ÷ No. shares of common stock outstanding
= ÷ =

³ Closing price as at the filing date of Microsoft Corp. Annual Report.

⁴ 2022 Calculation
P/E ratio = Share price ÷ EPS
= ÷ =

⁵ Click competitor name to see calculations.

Valuation ratio	Description	The company
P/E ratio	The P/E ratio tells analyst how much an investor in common stock pays per dollar of current earnings.	Microsoft Corp. P/E ratio increased from 2020 to 2021 but then decreased significantly from 2021 to 2022.

Microsoft Corp., historical P/OP calculation, comparison to benchmarks

		Jun 30, 2022	Jun 30, 2021	Jun 30, 2020	Jun 30, 2019	Jun 30, 2018	Jun 30, 2017
	No. shares of common stock outstanding¹
	Selected Financial Data (US$)
	Operating income (in millions)
	Operating profit per share²
	Share price^1, 3
	Valuation Ratio
	P/OP ratio⁴
	Benchmarks
	P/OP Ratio, Competitors⁵
	Accenture PLC
	Adobe Inc.
	Fidelity National Information Services Inc.
	International Business Machines Corp.
	Intuit Inc.
	Mastercard Inc.
	Oracle Corp.
	PayPal Holdings Inc.
	Salesforce Inc.
	ServiceNow Inc.
	Visa Inc.
	P/OP Ratio, Sector
	Software & Services
	P/OP Ratio, Industry
	Information Technology

Based on: 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).

¹ Data adjusted for splits and stock dividends.

² 2022 Calculation
Operating profit per share = Operating income ÷ No. shares of common stock outstanding
= ÷ =

³ Closing price as at the filing date of Microsoft Corp. Annual Report.

⁴ 2022 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= ÷ =

⁵ Click competitor name to see calculations.

Valuation ratio	Description	The company
P/OP ratio	Because P/E ratio is calculated using net income, the ratio can be sensitive to nonrecurring earnings and capital structure, analysts may use price to operating profit.	Microsoft Corp. P/OP ratio increased from 2020 to 2021 but then decreased significantly from 2021 to 2022.

Microsoft Corp., historical P/S calculation, comparison to benchmarks

		Jun 30, 2022	Jun 30, 2021	Jun 30, 2020	Jun 30, 2019	Jun 30, 2018	Jun 30, 2017
	No. shares of common stock outstanding¹
	Selected Financial Data (US$)
	Revenue (in millions)
	Sales per share²
	Share price^1, 3
	Valuation Ratio
	P/S ratio⁴
	Benchmarks
	P/S Ratio, Competitors⁵
	Accenture PLC
	Adobe Inc.
	Fidelity National Information Services Inc.
	International Business Machines Corp.
	Intuit Inc.
	Mastercard Inc.
	Oracle Corp.
	PayPal Holdings Inc.
	Salesforce Inc.
	ServiceNow Inc.
	Visa Inc.
	P/S Ratio, Sector
	Software & Services
	P/S Ratio, Industry
	Information Technology

Based on: 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).

¹ Data adjusted for splits and stock dividends.

² 2022 Calculation
Sales per share = Revenue ÷ No. shares of common stock outstanding
= ÷ =

³ Closing price as at the filing date of Microsoft Corp. Annual Report.

⁴ 2022 Calculation
P/S ratio = Share price ÷ Sales per share
= ÷ =

⁵ Click competitor name to see calculations.

Valuation ratio	Description	The company
P/S ratio	An rationale for the P/S ratio is that sales, as the top line in an income statement, are generally less subject to distortion or manipulation than other fundamentals such as EPS or book value. Sales are also more stable than earnings and never negative.	Microsoft Corp. P/S ratio increased from 2020 to 2021 but then decreased significantly from 2021 to 2022.

Microsoft Corp., historical P/BV calculation, comparison to benchmarks

		Jun 30, 2022	Jun 30, 2021	Jun 30, 2020	Jun 30, 2019	Jun 30, 2018	Jun 30, 2017
	No. shares of common stock outstanding¹
	Selected Financial Data (US$)
	Stockholders’ equity (in millions)
	Book value per share (BVPS)²
	Share price^1, 3
	Valuation Ratio
	P/BV ratio⁴
	Benchmarks
	P/BV Ratio, Competitors⁵
	Accenture PLC
	Adobe Inc.
	Fidelity National Information Services Inc.
	International Business Machines Corp.
	Intuit Inc.
	Mastercard Inc.
	Oracle Corp.
	PayPal Holdings Inc.
	Salesforce Inc.
	ServiceNow Inc.
	Visa Inc.
	P/BV Ratio, Sector
	Software & Services
	P/BV Ratio, Industry
	Information Technology

Based on: 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).

¹ Data adjusted for splits and stock dividends.

² 2022 Calculation
BVPS = Stockholders’ equity ÷ No. shares of common stock outstanding
= ÷ =

³ Closing price as at the filing date of Microsoft Corp. Annual Report.

⁴ 2022 Calculation
P/BV ratio = Share price ÷ BVPS
= ÷ =

⁵ Click competitor name to see calculations.

Valuation ratio	Description	The company
P/BV ratio	The P/BV ratio is interpreted as an indicator of market judgment about the relationship between a company required rate of return and its actual rate of return.	Microsoft Corp. P/BV ratio increased from 2020 to 2021 but then decreased significantly from 2021 to 2022.

	Microsoft Corp.	Other companies (not purchased previously)
Financial Statements
Common-Size Financial Statements
Analysis of Financial Ratios
Relative Valuation
Discounted Cash Flow (DCF) Valuation
Economic Value Added (EVA)
Long-term Trends
Analysis of Components of Financial Statements
Financial Reporting Quality

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Financial Statements
Common-Size Financial Statements
Analysis of Financial Ratios
Relative Valuation
Discounted Cash Flow (DCF) Valuation
Economic Value Added (EVA)
Long-term Trends
Analysis of Components of Financial Statements
Financial Reporting Quality

Microsoft Corp. (NASDAQ:MSFT)

Common Stock Valuation Ratios (Price Multiples)

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Current Valuation Ratios

Historical Valuation Ratios (Summary)

Price to Earnings (P/E)

Price to Operating Profit (P/OP)

Price to Sales (P/S)

Price to Book Value (P/BV)