Microsoft
P/E Ratio
25.10
13 February 2026

The estimated Price-to-Earnings (P/E) Ratio for Microsoft is 25.10calculated on 13 February 2026.

Considering the last 5 yearsan average P/E interval is [31.10 36.50]. For this reasonthe current P/E can be considered Cheap

Historical P/E Ratio

When evaluating the P/E Ratioit's important to not only look at its absolute value but also compare it to the average of previous periods. This allows for a more comprehensive understanding of the index/market valuation.

The following chart shows how the Microsoft P/E Ratio has changed over time. Furthermorefor some trailing timeframesyou can view the average P/E and standard deviation.

Normalized vs (μ σ)
13 February 2026 · P/E Ratio: 25.10
13 February 2026 · P/E Ratio: 25.10 · 1Y Average: 34.58 · 1 Std Dev range: [32.10 37.06] · 2 Std Dev range: [29.61 39.54]
13 February 2026 · P/E Ratio: 25.10 · 5Y Average: 33.80 · 1 Std Dev range: [31.10 36.50] · 2 Std Dev range: [28.41 39.19]
13 February 2026 · P/E Ratio: 25.10 · 10Y Average: 32.61 · 1 Std Dev range: [28.15 37.07] · 2 Std Dev range: [23.70 41.52]
13 February 2026 · P/E Ratio: 25.10 · 20Y Average: 24.38 · 1 Std Dev range: [16.47 32.29] · 2 Std Dev range: [8.56 40.20]
Methodology

The Average P/E (μ) and the Standard Deviation (σ) are calculated excluding 20% outliers (i.e. over a range of values excluding 10% of observations from the top and 10% from the bottom of the dataset). AdditionallyP/E values greater than 70 or lower than 1 are logarithmically normalized to reduce distortions.

A P/E between (μ - σ) and (μ + σ) is considered "Fair"over a specific timeframe.
A P/E greater than (μ + σ) is defined "Overvalued"greater than (μ + 2σ) is defined "Expensive".
A P/E less than (μ - σ) is defined "Undervalued"less than (μ - 2σ) is defined "Cheap".

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Trailing P/E Ratio Stats

The following table provides a comprehensive analysis of the Price-to-Earnings (P/E) ratio over different trailing time periods. It includes key statistical measures such as the average P/E ratiovarianceand an evaluation of the current price relative to historical trends.

The data allows to assess market valuation over various time horizonshelping to identify potential overvaluation or undervaluation trends. The time intervals range from short-term (1 year) to long-term (20 years when available), offering a broad perspective on market conditions.

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13 February 2026 · P/E Ratio: 25.10 · Last Periods metrics
Show all periods
Swipe left to see all data
Range
Analysis
Period Average P/E
(μ)		 Std Dev
(σ)		 Std Dev Range
[ μ-2σ · μ-σ μ+σ · μ+2σ ]		 vs Current P/E
( 25.10 )		 Deviation
vs μ		 Valuation
Last 1Y 34.58 2.48 [29.61 · 32.10 37.06 · 39.54]
-3.82 σ
Cheap
Last 2Y 35.46 1.67 [32.12 · 33.79 37.13 · 38.80]
-6.21 σ
Cheap
Last 3Y 34.67 1.82 [31.04 · 32.85 36.48 · 38.30]
-5.27 σ
Cheap
Last 4Y 32.92 3.14 [26.65 · 29.78 36.05 · 39.19]
-2.49 σ
Cheap
Last 5Y 33.80 2.70 [28.41 · 31.10 36.50 · 39.19]
-3.23 σ
Cheap
Last 6Y 33.59 2.70 [28.19 · 30.89 36.28 · 38.98]
-3.15 σ
Cheap
Last 7Y 32.84 3.10 [26.64 · 29.74 35.94 · 39.04]
-2.50 σ
Cheap
Last 8Y 33.61 3.63 [26.34 · 29.97 37.24 · 40.87]
-2.34 σ
Cheap
Last 9Y 32.51 4.16 [24.20 · 28.35 36.66 · 40.82]
-1.78 σ
Undervalued
Last 10Y 32.61 4.46 [23.70 · 28.15 37.07 · 41.52]
-1.69 σ
Undervalued
Last 11Y 31.90 4.70 [22.51 · 27.21 36.60 · 41.30]
-1.45 σ
Undervalued
Last 12Y 30.81 5.44 [19.92 · 25.37 36.25 · 41.70]
-1.05 σ
Undervalued
Last 13Y 29.51 6.35 [16.81 · 23.16 35.86 · 42.21]
-0.70 σ
Fair
Last 14Y 28.28 7.20 [13.88 · 21.08 35.48 · 42.68]
-0.44 σ
Fair
Last 15Y 27.24 7.92 [11.39 · 19.31 35.16 · 43.08]
-0.27 σ
Fair
Last 16Y 26.15 8.30 [9.56 · 17.86 34.45 · 42.75]
-0.13 σ
Fair
Last 17Y 25.30 8.51 [8.28 · 16.79 33.81 · 42.33]
-0.02 σ
Fair
Last 18Y 24.56 8.50 [7.55 · 16.06 33.07 · 41.57]
+0.06 σ
Fair
Last 19Y 24.41 8.18 [8.04 · 16.22 32.59 · 40.78]
+0.08 σ
Fair
Last 20Y 24.38 7.91 [8.56 · 16.47 32.29 · 40.20]
+0.09 σ
Fair

P/E Comparison

How does the Microsoft P/E Ratio compare to other related markets or sectors?

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Deviation vs μ
Trend P/E 1Y 5Y 10Y 20Y
Microsoft 25.10
-3.82 σ -3.23 σ -1.69 σ +0.09 σ
S&P 500 Information Technology 37.65
+0.47 σ +1.53 σ +2.07 σ +3.44 σ

Microsoft Trend

Trend is evaluated considering the price of the MSFT Etf and its 200/50-day moving averages (SMA).

Swipe left to see all data
Trend Indicator Valuation Margin
Long Term Price vs SMA200 -17.66% 13 Feb
Short Term Price vs SMA50 -12.94% 13 Feb
The 200-day moving average is a long-term indicator that takes into account the average price of a stock over the past 200 trading days. It is considered a significant level of support or resistancemeaning that when the stock price is above the 200-day moving average (i.e. margin vs moving average is positive)it is generally viewed as bullishwhile when it is belowit is viewed as bearish.
The 50-day moving averageon the other handis a shorter-term indicator that measures the average price of a stock over the past 50 trading days. It is also viewed as a significant level of support or resistance and can be used to identify shorter-term trends.