GURUFOCUS.COM » STOCK LIST » Technology » Software » Microsoft Corp (NAS:MSFT) » Definitions » Median PS Value

Microsoft (Microsoft) Median PS Value

: $239.96 (As of Today)
View and export this data going back to 1986. Start your Free Trial

This valuation method assumes that the stock valuation will revert to its historical (10-Year) mean in terms of PS Ratio. The reason we use PS Ratio instead of PE Ratio or PB Ratio is because PS Ratio is independent of profit margin, and can be applied to a broader range of situations.

Median PS Value is calculated as trailing twelve months (TTM) Revenue per Share times 10-Year median PS Ratio. Microsoft's Revenue per Share for the trailing twelve months (TTM) ended in Dec. 2023 was $30.487. Microsoft's 10-Year median PS Ratio is 7.8709. Therefore, the Median PS Value for today is $239.96.

As of today (2024-04-19), Microsoft's share price is $400.745. Microsoft's Median PS Value is $239.96. Therefore, Microsoft's Price to Median PS Value for today is 1.67.

The historical rank and industry rank for Microsoft's Median PS Value or its related term are showing as below:

MSFT' s Price-to-Median-PS-Value Range Over the Past 10 Years
Min: 0.9   Med: 1.61   Max: 2.54
Current: 1.67

During the past 13 years, the highest Price to Median PS Value of Microsoft was 2.54. The lowest was 0.90. And the median was 1.61.

MSFT's Price-to-Median-PS-Value is ranked worse than
81.54% of 1024 companies
in the Software industry
Industry Median: 0.96 vs MSFT: 1.67

Microsoft Median PS Value Historical Data

The historical data trend for Microsoft's Median PS Value can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Microsoft Annual Data
Trend Jun14 Jun15 Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23
Median PS Value
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 68.76 82.92 111.90 155.18 206.67

Microsoft Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Median PS Value Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 188.97 197.61 206.67 219.61 239.96

Competitive Comparison

For the Software - Infrastructure subindustry, Microsoft's Price-to-Median-PS-Value, along with its competitors' market caps and Price-to-Median-PS-Value data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Microsoft Price-to-Median-PS-Value Distribution

For the Software industry and Technology sector, Microsoft's Price-to-Median-PS-Value distribution charts can be found below:

* The bar in red indicates where Microsoft's Price-to-Median-PS-Value falls into.



Microsoft Median PS Value Calculation

Microsoft's Median PS Value for today is calculated as

Median PS Value=Revenue per Share (TTM)*10-Year Median PS Ratio
=30.487*7.8709
=239.96

10-Year Median PS Ratio is 7.8709.
Microsoft's Revenue per Share for the trailing twelve months (TTM) ended in Dec. 2023 adds up the quarterly data reported by the company within the most recent 12 months, which was $30.487.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Microsoft  (NAS:MSFT) Median PS Value Explanation

This valuation method assumes that the stock valuation will revert to its historical (10-Year) mean in terms of PS Ratio. The reason we use PS Ratio instead of PE Ratio or PB Ratio is because PS Ratio is independent of profit margin, and can be applied to a broader range of situations.

It also assumes that over time the profit margin is constant. If a company increases its profit margin to a sustainable level, this value might under-estimate its value. If it has permanent declined profit margins, this may over-estimate the company's value.

Microsoft's Price to Median PS Value for today is calculated as

Price to Median PS Value=Share Price/Median PS Value
=400.745/239.96
=1.67

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Microsoft Median PS Value Related Terms

Thank you for viewing the detailed overview of Microsoft's Median PS Value provided by GuruFocus.com. Please click on the following links to see related term pages.


Microsoft (Microsoft) Business Description

Address
One Microsoft Way, Redmond, WA, USA, 98052-6399
Microsoft develops and licenses consumer and enterprise software. It is known for its Windows operating systems and Office productivity suite. The company is organized into three equally sized broad segments: productivity and business processes (legacy Microsoft Office, cloud-based Office 365, Exchange, SharePoint, Skype, LinkedIn, Dynamics), intelligence cloud (infrastructure- and platform-as-a-service offerings Azure, Windows Server OS, SQL Server), and more personal computing (Windows Client, Xbox, Bing search, display advertising, and Surface laptops, tablets, and desktops).
Executives
Kathleen T Hogan officer: EVP, Human Resources C/O MICROSOFT CORPORATION, ONE MICROSOFT WAY, REDMOND WA 98052-6399
Judson Althoff officer: EVP, Chief Commercial Officer MICROSOFT CORPORATION, ONE MICROSOFT WAY, REDMOND WA 98052
Satya Nadella director, officer: Chief Executive Officer C/O MICROSOFT CORPORATION, ONE MICROSOFT WAY, REDMOND WA 98052-6399
Bradford L Smith officer: Executive Vice President MICROSOFT CORPORATION, ONE MICROSOFT WAY, REDMOND WA 98052-6399
Teri List director 2200 PENNSYLVANIA AVENUE, SUITE 800W, WASHINGTON DC 20037
Christopher C Capossela officer: EVP, Chief Marketing Officer C/O MICROSOFT CORPORATION, ONE MICROSOFT WAY, REDMOND WA 98052-6399
Amy Hood officer: Chief Financial Officer C/O MICROSOFT CORPORATION, ONE MICROSOFT WAY, REDMOND WA 98052-6399
Emma N Walmsley director C/O MICROSOFT CORPORATION, ONE MICROSOFT WAY, REDMOND WA 98052-6399
Carlos A Rodriguez director 10200 SUNSET DRIVE, MIAMI FL 33173
Christopher David Young officer: EVP, Business Development C/O MICROSOFT CORPORATION, ONE MICROSOFT WAY, REDMOND WA 98052-6399
John W Stanton director 3650 131ST AVE SE #400, WESTERN WIRELESS CORP, BELLEVUE WA 98006
Charles W Scharf director C/O VISA INC., 900 METRO CENTER BLVD., FOSTER CITY CA 94404
Hugh F Johnston director PEPSICO, INC., 700 ANDERSON HILL ROAD, PURCHASE NY 10577
Reid Hoffman director C/O LINKEDIN CORPORATION, 2029 STIERLIN COURT, MOUNTAIN VIEW CA 94043
Sandra E Peterson director 100 PARSONS POND DRIVE, FRANKLIN LAKES NJ 07417