Ideally, one might believe that the stock might perform worse than its peers, but it’s also probable that the stock is undervalued. This leads investors to also remain optimistic about rising dividends in the future. Moreover, over the past month, the stock decreased by 3.47%, but in the past year, went up by 11.87%.

PE ratio at the end of each year

• A low P/E ratio can be an indication of undervaluation, but it can also suggest weak growth prospects or financial instability.
• You should evaluate each bond before investing in a Bond Account.
• The bonds in your Bond Account will not be rebalanced and allocations will not be updated, except for Corporate Actions.Fractional Bonds also carry additional risks including that they are only available on Public and cannot be transferred to other brokerages.
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The data allows to assess market valuation over various time horizons, helping to identify potential overvaluation or undervaluation trends. The following table provides a comprehensive analysis of the Price-to-Earnings (P/E) ratio over different trailing time periods. This allows for a more comprehensive understanding of the index/market valuation. Current and historical p/e ratio for Microsoft (MSFT) from 2012 to 2025. Top stories, top movers, and trade ideas delivered to your inbox every weekday before and after the market closes. A newsletter built for market enthusiasts by market enthusiasts.

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The P/E ratio measures the current share price to the company’s EPS. The market capitalization sometimes referred as Marketcap, is the value of a publicly listed company. Companies with a positive P/E ratio bellow 10 are generally seen vegas casino apk as “value stocks” meaning that the company is already very profitable and unlikely to strong growth in the future.

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A low P/E ratio can be an indication of undervaluation, but it can also suggest weak growth prospects or financial instability. In most cases it can be easily calculated by multiplying the share price with the amount of outstanding shares. You assume full responsibility for any trading decisions you make based upon the market data provided, and Public is not liable for any loss caused directly or indirectly by your use of such information. Such information is time sensitive and subject to change based on market conditions and other factors.

By taking a comprehensive approach to analyzing a company’s financial health, investors can make well-informed decisions that are more likely to lead to successful outcomes. A higher P/E indicates that investors expect the company to perform better in the future, and the stock is probably overvalued, but not necessarily. Shareholders might be interested in knowing whether the stock is overvalued, even if the company is performing up to par in the current session. Plans involve continuous investments, regardless of market conditions. Plans are created using defined, objective criteria based on generally accepted investment theory; they are not based on your needs or risk profile.

Microsoft (MSFT) End of Year P/E Ratio

Ratings are not recommendations to purchase, hold, or sell securities, and they do not address the market value of securities or their suitability for investment purposes.A Bond Account is a self-directed brokerage account with Public Investing. In summary, while the price-to-earnings ratio is a valuable tool for investors to evaluate a company’s market performance, it should be used with caution. The Price/Earnings ratio measures the relationship between a company’s stock price and its earnings per share. Deposits into this account are used to purchase 10 investment-grade and high-yield bonds. This material is not intended as a recommendation, offer, or solicitation to purchase or sell securities, open a brokerage account, or engage in any investment strategy.

Microsoft: current P/E Ratio

Rebate rates vary monthly from $0.06-$0.18 and depend on your current and prior month’s options trading volume. Options transactions are often complex, and investors can rapidly lose the entire amount of their investment or more in a short period of time. Options can be risky and are not suitable for all investors. The PE ratio is a simple way to assess whether a stock is over or under valued and is the most widely used valuation measure.

What is Microsoft (MSFT)’s current P/E ratio?

Investors should consider their investment objectives and risks carefully before investing in options. This is not an offer, solicitation of an offer, or advice to buy or sell securities or open a brokerage account in any jurisdiction where Public Investing is not registered. It also could indicate that investors are willing to pay a higher share price currently, because they expect the company to perform better in the upcoming quarters.

P/E ratio as of January 2026 (TTM): 34.3

• This leads investors to also remain optimistic about rising dividends in the future.
• Plans are self-directed purchases of individually-selected assets, which may include stocks, ETFs and cryptocurrency.
• Moreover, over the past month, the stock decreased by 3.47%, but in the past year, went up by 11.87%.
• This material is not intended as a recommendation, offer, or solicitation to purchase or sell securities, open a brokerage account, or engage in any investment strategy.
• Investment Plans (“Plans”) shown in our marketplace are for informational purposes only and are meant as helpful starting points as you discover, research and create a Plan that meets your specific investing needs.

Treasury Accounts.Investing services in treasury accounts offering 6 month US Treasury Bills on the Public platform are through Jiko Securities, Inc. (“JSI”), a registered broker-dealer and member of FINRA & SIPC. You should evaluate each bond before investing in a Bond Account. Bond Accounts are not recommendations of individual bonds or default allocations. The “locked in” YTW is not guaranteed; you may receive less than the YTW of the bonds in the Bond Account if you sell any of the bonds before maturity or if the issuer defaults on the bond. Bonds with higher yields or offered by issuers with lower credit ratings generally carry a higher degree of risk.

Price Over Earnings Overview: Microsoft

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Microsoft (MSFT) P/E Ratio Historic Data

Apex Clearing Corporation, our clearing firm, has additional insurance coverage in excess of the regular SIPC limits. You should consult your legal, tax, or financial advisors before making any financial decisions. How does the Microsoft P/E Ratio compare to other related markets or sectors? The time intervals range from short-term (1 year) to long-term (20 years when available), offering a broad perspective on market conditions.

Investment Plans (“Plans”) shown in our marketplace are for informational purposes only and are meant as helpful starting points as you discover, research and create a Plan that meets your specific investing needs. As a general rule, the price of a T-bills moves inversely to changes in interest rates. Investments in T-bills involve a variety of risks, including credit risk, interest rate risk, and liquidity risk.

The bonds in your Bond Account will not be rebalanced and allocations will not be updated, except for Corporate Actions.Fractional Bonds also carry additional risks including that they are only available on Public and cannot be transferred to other brokerages. A bond’s yield is a function of its market price, which can fluctuate; therefore a bond’s YTW is not “locked in” until the bond is purchased, and your yield at time of purchase may be different from the yield shown here. Bonds.“Bonds” shall refer to corporate debt securities and U.S. government securities offered on the Public platform through a self-directed brokerage account held at Public Investing and custodied at Apex Clearing.

A company with a high negative (near 0) P/E ratio stands for a company that is generating heavy losses compared to its current valuation. Keep in mind that other fees such as regulatory fees, Premium subscription fees, commissions on trades during extended trading hours, wire transfer fees, and paper statement fees may apply to your brokerage account. Although T-bills are considered safer than many other financial instruments, you could lose all or a part of your investment. T-bills are subject to price change and availability – yield is subject to change. The value of T-bills fluctuate and investors may receive more or less than their original investments if sold prior to maturity. See Bond Account Disclosures to learn more.High-Yield Cash Account.A High-Yield Cash Account is a secondary brokerage account with Public Investing.

What is Microsoft (MSFT)’s average P/E ratio over the last 5 years?

It is used by long-term investors to analyze the company’s current performance against it’s past earnings, historical data and aggregate market data for the industry or the indices, such as S&P 500. A low but positive P/E ratio stands for a company that is generating high earnings compared to its current valuation and might be undervalued. Your Zero Hash Crypto account is separate from your brokerage account with Public Investing, which holds US-listed stocks and ETFs. Cryptocurrencies are not stocks and your cryptocurrency investments are not FDIC insured or SIPC protected.Cryptocurrency investing is highly speculative, involves a high degree of risk, and has the potential for loss of the entire amount of an investment.

Cryptocurrencies offered by Zero Hash are not securities and are not FDIC insured or protected by SIPC. Bond ratings, if provided, are third party opinions on the overall bond’s credit worthiness at the time the rating is assigned. In general, when interest rates go up, Bond prices typically drop, and vice versa.