PE Ratio: 27.84

Basis: Latest stored market observation. Source: stored company filings and market data; unavailable inputs remain N/A.

Is the P/E ratio high or low?

The P/E ratio of 27.84 is 14% below its 5-year average of 32.56, around the middle of its 5-year range (21.00–40.48).

As of Friday, September 4, 2026. 4.76% below its 12-month average of 29.23.

PE Ratio (27.84) = Close Price ($492.33) / Diluted TTM EPS ($17.68)

MSFT PE Ratio Metrics

P/E vs. its own history

At 27.8, P/E is near its 20-year median — higher than 60% of readings in its 20-year history.

P/E Comparison

PE Ratio Formula & Definition

PE Ratio = Share Price / Diluted EPS (TTM)

The price-to-earnings ratio measures how much investors pay for each dollar of trailing earnings. A lower PE can indicate a cheaper valuation; a higher PE implies higher growth expectations.

Expanded definitions: Investopedia, Wikipedia, Corporate Finance Institute

PE Ratio FAQ

What is the P/E ratio for Microsoft Corporation (MSFT)?

The P/E ratio for MSFT stock is 27.84.

Is Microsoft Corporation's P/E ratio high or low?

The P/E ratio of 27.84 is 14% below its 5-year average of 32.56, around the middle of its 5-year range (21.00–40.48).

What is the TTM average P/E ratio for Microsoft Corporation (MSFT)?

The TTM average P/E ratio for MSFT stock is 29.23.

What is the 3Y average P/E ratio for Microsoft Corporation (MSFT)?

The 3Y average P/E ratio for MSFT stock is 34.14.

What is the 5Y average P/E ratio for Microsoft Corporation (MSFT)?

The 5Y average P/E ratio for MSFT stock is 32.56.

What is the 10Y average P/E ratio for Microsoft Corporation (MSFT)?

The 10Y average P/E ratio for MSFT stock is 32.07.

What is the 15Y average P/E ratio for Microsoft Corporation (MSFT)?

The 15Y average P/E ratio for MSFT stock is 28.53.

What is the 20Y average P/E ratio for Microsoft Corporation (MSFT)?

The 20Y average P/E ratio for MSFT stock is 25.37.

Showing the most recent 260 of 5,032 data points. The chart above shows the full history.

Related Metrics