Microsoft (MIL:1MSFT) Cyclically Adjusted PB Ratio: (As of Jul. 30, 2026)

Author: Vera Yuan Vera Yuan
Vera Yuan
Vera Yuan
Director of Data and Quant Analytics at GuruFocus
Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Reviewed by: Charlie Tian Charlie Tian
Charlie Tian
Charlie Tian
Founder & CEO of GuruFocus
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.

MIL:1MSFT Microsoft Corp MIL:1MSFT
83 GF Score
Price €346.45
GF Value €490.40
Valuation Modestly Undervalued
! 2 Warning Signs
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What is Microsoft Cyclically Adjusted PB Ratio?

Shiller PE for Stocks: The True Measure of Stock Valuation


Microsoft  (MIL:1MSFT) Cyclically Adjusted PB Ratio Explanation

Compared with the regular PB Ratio, which works poorly for cyclical businesses, the Cyclically Adjusted PB Ratio smoothed out the fluctuations of book value during business cycles. Therefore it is more accurate in reflecting the valuation of the company.

If a company has consistent business performance, the Cyclically Adjusted PB Ratio should give similar results to regular PB Ratio.


Microsoft Cyclically Adjusted PB Ratio Related Terms


Microsoft Cyclically Adjusted PB Ratio Historical Data

* Premium members only.

The historical data trend for Microsoft's Cyclically Adjusted PB Ratio 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.

Microsoft Cyclically Adjusted PB Ratio Chart

Microsoft Annual Data
Trend Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23 Jun24 Jun25 Jun26
Cyclically Adjusted PB Ratio
Get a 7-Day Free Trial Premium Member Only Premium Member Only 17.41 20.50 23.46 22.24 0.00

Microsoft Quarterly Data
Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26 Jun26
Cyclically Adjusted PB Ratio Get a 7-Day Free Trial 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 22.24 22.12 19.87 14.31 0.00

MIL:1MSFT vs ORCL, PLTR, PANW: Cyclically Adjusted PB Ratio Comparison

For the Software - Infrastructure subindustry, Microsoft's Cyclically Adjusted PB Ratio, along with its competitors' market caps and Cyclically Adjusted PB Ratio 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 Cyclically Adjusted PB Ratio vs Software Industry

For the Software industry and Technology sector, Microsoft's Cyclically Adjusted PB Ratio distribution charts can be found below:

* The bar in red indicates where Microsoft's Cyclically Adjusted PB Ratio falls into.


MIL:1MSFT
83GF Score
Microsoft Corp MIL:1MSFT
Cyclically Adjusted PB Ratio is just one metric. See GF Score™, valuation, warning signs, and more.
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Microsoft Cyclically Adjusted PB Ratio Calculation

Like the Shiller PE Ratio, the Cyclically Adjusted PB Ratio takes the Book Value per Share from the past 10 years, adjusts it for inflation, and then calculates the average. This average is then used for the P/B calculation. Because it considers this 10-year average, it's often referred to as the CAPB Ratio.

The Shiller PE Ratio was first used by professor Robert Shiller to measure the valuation of the overall market. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted PB Ratio.

Microsoft's Cyclically Adjusted Book per Share for the quarter that ended in Jun. 2026 is calculated as:

For example, Microsoft's adjusted Book Value per Share data for the three months ended in Jun. 2026 was:

Adj_Book=Book Value per Share/CPI of Jun. 2026 (Change)*Current CPI (Jun. 2026)
=51.605/333.9520*333.9520
=51.605

Current CPI (Jun. 2026) = 333.9520.

Microsoft Quarterly Data

Book Value per Share CPI Adj_Book
201609 8.055 241.428 11.142
201612 8.439 241.432 11.673
201703 8.442 243.801 11.564
201706 10.128 244.955 13.808
201709 9.743 246.819 13.183
201712 8.594 246.524 11.642
201803 8.357 249.554 11.183
201806 9.223 251.989 12.223
201809 9.593 252.439 12.691
201812 10.540 251.233 14.010
201903 10.952 254.202 14.388
201906 11.849 256.143 15.448
201909 12.615 256.759 16.408
201912 13.020 256.974 16.920
202003 13.653 258.115 17.664
202006 13.876 257.797 17.975
202009 13.850 260.280 17.770
202012 14.187 260.474 18.189
202103 14.997 264.877 18.908
202106 15.674 271.696 19.266
202109 17.201 274.310 20.941
202112 18.881 278.802 22.616
202203 19.769 287.504 22.963
202206 21.108 296.311 23.789
202209 23.508 296.808 26.450
202212 23.215 296.797 26.121
202303 24.450 301.836 27.052
202306 25.611 305.109 28.032
202309 27.831 307.789 30.197
202312 29.400 306.746 32.008
202403 31.336 312.332 33.505
202406 33.550 314.175 35.662
202409 34.863 315.301 36.925
202412 38.879 315.605 41.139
202503 40.052 319.799 41.825
202506 40.058 322.561 41.473
202509 41.617 324.800 42.790
202512 44.934 324.054 46.306
202603 48.247 330.213 48.793
202606 51.605 333.952 51.605

Add all the adjusted book value per share together and divide the count will get our Cyclically Adjusted Book per Share.

Please note that we use the CPI data of the country/region where the company is headquartered. If the CPI data for that country/region is not available, then we will use the CPI data of the United States as default.

Is Microsoft (MIL:1MSFT) Overvalued in 2026?

Based on GuruFocus' analysis, Microsoft stock appears to be undervalued. The current stock price of €346.45 is trading 29.4% below its estimated GF Value™ of €490.40. GuruFocus considers Microsoft to be Modestly Undervalued.

Key valuation signals for MIL:1MSFT:

  • Cyclically Adjusted PB Ratio:
  • GF Value™: €490.40 vs. price of €346.45 (29.4% below fair value)
  • GF Score™: 83/100 with 2 warning signs

No single metric tells the full story. See the MIL:1MSFT stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


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).
83GF Score

Get the complete analysis for MIL:1MSFT

Cyclically Adjusted PB Ratio is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

€346.45
Price
€490.40
GF Value