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Microsoft (XAMS:MSF) Cyclically Adjusted PB Ratio : (As of May. 24, 2024)


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What is Microsoft Cyclically Adjusted PB Ratio?

Note: If the price history is too short, we do not calculate current Cyclically Adjusted PB Ratio for this stock. All the historical data is shown as the company's primary share's data instead.

Shiller PE for Stocks: The True Measure of Stock Valuation


Microsoft Cyclically Adjusted PB Ratio Historical Data

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.

* Premium members only.

Microsoft Cyclically Adjusted PB Ratio Chart

Microsoft Annual Data
Trend Jun14 Jun15 Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23
Cyclically Adjusted PB Ratio
Get a 7-Day Free Trial Premium Member Only Premium Member Only 13.65 18.91 21.85 17.41 20.50

Microsoft Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
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 17.96 20.50 18.38 21.39 22.86

Competitive Comparison of Microsoft's Cyclically Adjusted PB Ratio

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's Cyclically Adjusted PB Ratio Distribution in the 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.



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 Mar. 2024 is calculated as:

For example, Microsoft's adjusted Book Value per Share data for the three months ended in Mar. 2024 was:

Adj_Book=Book Value per Share/CPI of Mar. 2024 (Change)*Current CPI (Mar. 2024)
=32.792/131.7762*131.7762
=32.792

Current CPI (Mar. 2024) = 131.7762.

Microsoft Quarterly Data

Book Value per Share CPI Adj_Book
201406 10.897 100.560 14.280
201409 10.923 100.428 14.333
201412 11.180 99.070 14.871
201503 11.110 99.621 14.696
201506 9.977 100.684 13.058
201509 9.698 100.392 12.730
201512 9.688 99.792 12.793
201603 9.505 100.470 12.467
201606 9.221 101.688 11.949
201609 9.041 101.861 11.696
201612 8.902 101.863 11.516
201703 9.029 102.862 11.567
201706 11.379 103.349 14.509
201709 11.612 104.136 14.694
201712 10.150 104.011 12.859
201803 10.264 105.290 12.846
201806 10.715 106.317 13.281
201809 11.136 106.507 13.778
201812 11.934 105.998 14.836
201903 12.288 107.251 15.098
201906 13.255 108.070 16.163
201909 13.738 108.329 16.711
201912 14.263 108.420 17.336
202003 14.832 108.902 17.947
202006 15.324 108.767 18.566
202009 15.983 109.815 19.179
202012 16.870 109.897 20.229
202103 17.423 111.754 20.544
202106 18.392 114.631 21.143
202109 19.686 115.734 22.415
202112 20.727 117.630 23.220
202203 21.104 121.301 22.926
202206 21.573 125.017 22.739
202209 22.483 125.227 23.659
202212 23.722 125.222 24.964
202303 25.218 127.348 26.095
202306 26.713 128.729 27.345
202309 28.590 129.860 29.012
202312 30.864 129.419 31.426
202403 32.792 131.776 32.792

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.


Microsoft  (XAMS:MSF) 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

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Microsoft (XAMS:MSF) Business Description

Industry
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).

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