Microsoft (FRA:MSF1) Cyclically Adjusted PS 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.

FRA:MSF1 Microsoft Corp FRA:MSF1
91 GF Score
Price €4.72
GF Value €6.69
Valuation Modestly Undervalued
! 2 Warning Signs
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What is Microsoft Cyclically Adjusted PS Ratio?

Shiller PE for Stocks: The True Measure of Stock Valuation


Microsoft  (FRA:MSF1) Cyclically Adjusted PS Ratio Explanation

Compared with the regular PS Ratio, which works poorly for cyclical businesses, the Cyclically Adjusted PS Ratio smoothed out the fluctuations of revenue 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 PS Ratio should give similar results to regular PS Ratio.


Microsoft Cyclically Adjusted PS Ratio Related Terms


Microsoft Cyclically Adjusted PS Ratio Historical Data

* Premium members only.

The historical data trend for Microsoft's Cyclically Adjusted PS 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 PS Ratio Chart

Microsoft Annual Data
Trend Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23 Jun24 Jun25 Jun26
Cyclically Adjusted PS Ratio
Get a 7-Day Free Trial Premium Member Only Premium Member Only 14.46 17.06 19.87 19.60 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 PS 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 19.60 19.73 18.00 13.15 0.00

FRA:MSF1 vs ORCL, PLTR, PANW: Cyclically Adjusted PS Ratio Comparison

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

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

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


FRA:MSF1
91GF Score
Microsoft Corp FRA:MSF1
Cyclically Adjusted PS Ratio is just one metric. See GF Score™, valuation, warning signs, and more.
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Microsoft Cyclically Adjusted PS Ratio Calculation

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

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

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

Adj_RevenuePerShare=Revenue per Share/CPI of Jun. 2026 (Change)*Current CPI (Jun. 2026)
=10.499/333.9520*333.9520
=10.499

Current CPI (Jun. 2026) = 333.9520.

Microsoft Quarterly Data

Revenue per Share CPI Adj_RevenuePerShare
201609 2.481 241.428 3.432
201612 3.127 241.432 4.325
201703 2.778 243.801 3.805
201706 2.919 244.955 3.980
201709 2.640 246.819 3.572
201712 3.169 246.524 4.293
201803 2.791 249.554 3.735
201806 3.309 251.989 4.385
201809 3.210 252.439 4.247
201812 3.674 251.233 4.884
201903 3.494 254.202 4.590
201906 3.858 256.143 5.030
201909 3.893 256.759 5.063
201912 4.319 256.974 5.613
202003 4.130 258.115 5.343
202006 4.413 257.797 5.717
202009 4.130 260.280 5.299
202012 4.649 260.474 5.960
202103 4.611 264.877 5.813
202106 5.053 271.696 6.211
202109 5.090 274.310 6.197
202112 6.059 278.802 7.258
202203 5.949 287.504 6.910
202206 6.538 296.311 7.369
202209 6.763 296.808 7.609
202212 6.663 296.797 7.497
202303 6.614 301.836 7.318
202306 6.946 305.109 7.603
202309 7.097 307.789 7.700
202312 7.615 306.746 8.290
202403 7.616 312.332 8.143
202406 8.044 314.175 8.550
202409 7.911 315.301 8.379
202412 8.904 315.605 9.422
202503 8.687 319.799 9.071
202506 8.882 322.561 9.196
202509 8.864 324.800 9.114
202512 9.304 324.054 9.588
202603 9.630 330.213 9.739
202606 10.499 333.952 10.499

Add all the adjusted revenue per share together and divide 10 will get our Cyclically Adjusted Revenue 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 (FRA:MSF1) Overvalued in 2026?

Based on GuruFocus' analysis, Microsoft stock appears to be undervalued. The current stock price of €4.72 is trading 29.4% below its estimated GF Value™ of €6.69. GuruFocus considers Microsoft to be Modestly Undervalued.

Key valuation signals for FRA:MSF1:

  • Cyclically Adjusted PS Ratio:
  • GF Value™: €6.69 vs. price of €4.72 (29.4% below fair value)
  • GF Score™: 91/100 with 2 warning signs

No single metric tells the full story. See the FRA:MSF1 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).
91GF Score

Get the complete analysis for FRA:MSF1

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

€4.72
Price
€6.69
GF Value