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Microsoft Corporation (MSFT) PEG Ratio: 2.34

Is Microsoft Corporation’s PEG ratio high or low?

Microsoft Corporation's PEG ratio of 2.34 is 92% below its 5-year average of 29.79, near the low end of its 5-year range (0.84–169.95).

The PEG ratio for Microsoft Corporation (MSFT) is 2.34. It is above its 12-month average by 14.43% (2.04).

MSFT PEG Ratio Chart

MSFT PEG Ratio
2.34+33.71% 1Y
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MSFT Average PEG Ratio Chart

MSFT Current vs Average PEG Ratio Chart

MSFT PEG Ratio Metrics

PEG RATIO

2.34

PEG RATIO AVG TTM

2.04

PEG RATIO AVG 3Y

43.85

PEG RATIO AVG 5Y

29.79

PEG RATIO AVG 10Y

19.98

PEG RATIO AVG 15Y

14.55

PEG RATIO AVG 20Y

11.40

CURRENT VS TTM AVG

+14.43%

CURRENT VS 3Y AVG

-94.66%

CURRENT VS 5Y AVG

-92.15%

CURRENT VS 10Y AVG

-88.29%

CURRENT VS 15Y AVG

-83.91%

CURRENT VS 20Y AVG

-79.48%

MSFT Competitors' PEG Ratio

NAMEMARKET CAPPEG RATIOTTM3Y5Y
Microsoft Corporation (MSFT)2.342.0443.8529.79
Apple Inc. (AAPL)$4.32T1.511.5186.2143.92
Alphabet Inc. (GOOGL)$4.31T0.840.710.770.82
Amazon.com, Inc. (AMZN)$2.57T1.100.761.481.26
Oracle Corporation (ORCL)$586.87B2.171.821.641.99
Salesforce, Inc. (CRM)$141.00B1.241.140.770.58

Growth-Adjusted Valuation

PEG Ratio

2.34

P/E Ratio

23.9

Microsoft Corporation PEG Ratio Formula & Definition

PEG Ratio = PE Ratio / Earnings Growth Rate

The PEG ratio adjusts the PE ratio for expected earnings growth. A PEG near 1 is often considered fairly valued relative to growth.

Expanded definitions: Investopedia, Wikipedia, Corporate Finance Institute

Microsoft Corporation PEG Ratio FAQ

What is the PEG ratio for Microsoft Corporation (MSFT)?
The PEG ratio for MSFT stock is 2.34.
Is Microsoft Corporation's PEG ratio high or low?
Microsoft Corporation's PEG ratio of 2.34 is 92% below its 5-year average of 29.79, near the low end of its 5-year range (0.84–169.95).
What is the TTM average PEG ratio for Microsoft Corporation (MSFT)?
The TTM average PEG ratio for MSFT stock is 2.04.
What is the 3Y average PEG ratio for Microsoft Corporation (MSFT)?
The 3Y average PEG ratio for MSFT stock is 43.85.
What is the 5Y average PEG ratio for Microsoft Corporation (MSFT)?
The 5Y average PEG ratio for MSFT stock is 29.79.
What is the 10Y average PEG ratio for Microsoft Corporation (MSFT)?
The 10Y average PEG ratio for MSFT stock is 19.98.
What is the 15Y average PEG ratio for Microsoft Corporation (MSFT)?
The 15Y average PEG ratio for MSFT stock is 14.55.
What is the 20Y average PEG ratio for Microsoft Corporation (MSFT)?
The 20Y average PEG ratio for MSFT stock is 11.40.

Microsoft Corporation PEG Ratio History

DATEPEG RATIO
2025-06-302.34
2024-06-301.75
2023-06-30169.95
2022-06-301.36
2021-06-300.84
2020-06-302.52
2019-06-300.19
2017-06-300.38
2016-06-300.47
2014-06-308.18
2013-06-300.45
2011-06-300.34
2010-06-300.35
2008-06-300.45
2007-06-301.07
2006-06-302.73
2005-06-300.45
2004-06-304.41
2002-06-308.36
2000-06-302.82
1999-06-300.86
1998-06-302.11
1997-06-300.87
1996-06-300.46

About Microsoft Corporation

Microsoft Corporation is a prominent global technology firm that invents, markets, and provides ongoing assistance for a diverse range of software, digital services, computing devices, and comprehensive solutions. Its operations are organized into three primary divisions: Productivity and Business Processes, Intelligent Cloud, and More Personal Computing. The Productivity and Business Processes segment delivers crucial tools for both enterprises and individual users. This includes the extensive Office suite (comprising Exchange, SharePoint, Microsoft Teams, Office 365 Security and Compliance, Microsoft Viva, and Skype for Business), along with popular consumer offerings like Skype, Outlook.com, OneDrive, and LinkedIn. It also features Dynamics 365, a suite of integrated cloud and on-premises business applications tailored for organizations. The Intelligent Cloud division focuses on sophisticated infrastructure and platform services. Here, Microsoft licenses key products such as SQL Server, Windows Servers, Visual Studio, System Center, and associated Client Access Licenses. It also includes GitHub, a leading platform for developer collaboration and code hosting; Nuance, offering advanced AI solutions for healthcare and businesses; and Azure, its expansive cloud computing platform. This segment further encompasses enterprise support, Microsoft consulting services, and Nuance professional services, assisting clients with the development, deployment, and management of Microsoft's server and desktop technologies, alongside offering product training and certification. Finally, the More Personal Computing segment covers a broad spectrum of consumer and commercial computing experiences. It generates revenue through Windows operating system licensing, including agreements with original equipment manufacturers (OEMs), non-volume licensing, and various Windows Commercial offerings (such as volume licensing and cloud services), as well as patent licensing and Windows Internet of Things (IoT). This division also supplies its own hardware, including Surface devices, PC accessories, and gaming/entertainment consoles. Its Gaming portfolio features Xbox hardware, content, and subscription services, in addition to video games and royalties from third-party titles. Furthermore, it manages search services like Bing and Microsoft's advertising platforms. Microsoft distributes its extensive product line via numerous channels, including original equipment manufacturers, wholesale distributors, and various resellers, complementing direct sales through digital marketplaces, its own online storefronts, and physical retail outlets. The company, established in 1975, maintains its headquarters in Redmond, Washington.

Redmond, WA
228,000 employees
Technology / Software - Infrastructure
Sector
Technology
Industry
Software - Infrastructure
CEO
Satya Nadella