E10 is a concept invented by Prof. Robert Shiller, who uses E10 for his Shiller PE Ratio calculation. E10 is the average of the inflation adjusted earnings of a company over the past 10 years. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted Revenue per Share and the Cyclically Adjusted PS Ratio. The Cyclically Adjusted Revenue per Share is the average of the inflation adjusted Revenue per Share of a company over the past 10 years.
Microsoft's adjusted revenue per share for the three months ended in Mar. 2026 was $11.133. Add all the adjusted revenue per share for the past 10 years together and divide the count will get our Cyclically Adjusted Revenue per Share, which is $28.15 for the trailing ten years ended in Mar. 2026.
During the past 12 months, Microsoft's average Cyclically Adjusted Revenue Growth Rate was 14.80% per year.
During the past 3 years, the average Cyclically Adjusted Revenue Growth Rate was 12.60% per year.
During the past 5 years, the average Cyclically Adjusted Revenue Growth Rate was 14.60% per year.
During the past 10 years, the average Cyclically Adjusted Revenue Growth Rate was 12.20% per year.
Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the Cyclically Adjusted Revenue Growth Rate using Cyclically Adjusted Revenue per Share data.
During the past 13 years, the highest 3-Year average Cyclically Adjusted Revenue Growth Rate of Microsoft was 30.50% per year. The lowest was 8.90% per year. And the median was 14.60% per year.
As of today (2026-07-07), Microsoft's current stock price is $399.76. Microsoft's Cyclically Adjusted Revenue per Share for the quarter that ended in Mar. 2026 was $28.15. Microsoft's Cyclically Adjusted PS Ratio of today is 14.20.
Microsoft (LIM:MSFT) Cyclically Adjusted Revenue per Share Explanation
If a company grows much fast than inflation, Cyclically Adjusted Revenue per Share may underestimate the company's revenue. Cyclically Adjusted PS Ratio can seem to be too high even the actual PS Ratio is low.
For the Cyclically Adjusted PS Ratio, the revenue per share of the past 10 years are inflation-adjusted and averaged. The result is used for P/S calculation. Since it looks at the average over the last 10 years, the Cyclically Adjusted PS Ratio is also called CAPS Ratio.
The Shiller PE Ratio was first used by professor Robert Shiller. He uses E10 for his Shiller PE Ratio calculation. E10 is the average of the inflation adjusted earnings per share of a company over the past 10 years. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted PS Ratio. The Cyclically Adjusted Revenue per Share is the average of the inflation adjusted revenue per share of a company over the past 10 years.
* 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.
During the past 13 years, the highestCyclically Adjusted PS Ratio of Microsoft was 22.41. The lowest was 5.99. And the median was 15.02.
Be Aware
Cyclically Adjusted PS Ratio works better for cyclical companies. It gives you a better idea on the company's real revenue value.
Microsoft Cyclically Adjusted Revenue per Share Related Terms
Microsoft Cyclically Adjusted Revenue per Share Historical Data
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The historical data trend for Microsoft's Cyclically Adjusted Revenue per Share 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 Revenue per Share Chart
LIM:MSFT vs ORCL, PLTR, PANW: Cyclically Adjusted Revenue per Share 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.
Microsoft Cyclically Adjusted Revenue per Share Calculation
E10 is a concept invented by Prof. Robert Shiller, who uses E10 for his Shiller PE Ratio calculation. E10 is the average of the inflation adjusted earnings of a company over the past 10 years. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted Revenue per Share and the Cyclically Adjusted PS Ratio. The Cyclically Adjusted Revenue per Share is the average of the inflation adjusted Revenue per Share of a company over the past 10 years.
What is Cyclically Adjusted Revenue per Share? How do we calculate Cyclically Adjusted Revenue per Share?
Cyclically Adjusted Revenue per Share is the average of the inflation adjusted Revenue per Share of a company over the past 10 years. Let's use an example to explain.
If we want to calculate the Cyclically Adjusted Revenue per Share of Wal-Mart (WMT) for Dec. 31, 2010, we need to have the inflation data and the revenue per share from 2001 through 2010.
We adjusted the 2001 revenue per share data with the total inflation from 2001 through 2010 to the equivalent revenue in 2010. If the total inflation from 2001 to 2010 is 40%, and Wal-Mart's revenue is $1 a share in 2001, then the 2001's equivalent revenue in 2010 is $1.4 a share. If Wal-Mart's revenue is $1 again in 2002, and the total inflation from 2002 through 2010 is 35%, then the equivalent 2002 revenue in 2010 is $1.35. So on and so forth, you get the equivalent revenue per share of past 10 years. Then you add them together and divided the sum by the count to get 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.
What does a Cyclically Adjusted Revenue per Share of $28.15 mean?
Microsoft (LIM:MSFT) has a Cyclically Adjusted Revenue per Share of $28.15 as of Mar. 2026. Cyclically adjusted revenue per share represents the company's inflation-adjusted revenue per share over a 10-year period. View historical data on Microsoft and its competitors.
Is Microsoft's Cyclically Adjusted Revenue per Share too high?
Microsoft's current Cyclically Adjusted Revenue per Share is $28.15. Overall, Microsoft has a GF Score™ of 95/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Microsoft's Cyclically Adjusted Revenue per Share compare to ORCL and PLTR?
Microsoft's Cyclically Adjusted Revenue per Share of $28.15 can be compared against companies in the Software industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Cyclically Adjusted Revenue per Share for a Software company?
A good Cyclically Adjusted Revenue per Share depends on the Software industry context. However, Cyclically Adjusted Revenue per Share should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Cyclically Adjusted Revenue per Share mean?
A high Cyclically Adjusted Revenue per Share can signal that a stock is expensive relative to its fundamentals. Cyclically adjusted revenue per share represents the company's inflation-adjusted revenue per share over a 10-year period. View historical data on Microsoft and its competitors. Microsoft's current Cyclically Adjusted Revenue per Share is $28.15. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Microsoft stock overvalued right now?
Based on GuruFocus' analysis, Microsoft (LIM:MSFT) is currently considered Modestly Undervalued. The stock's GF Value™ is $561.73, compared to a current price of $399.76 — trading 28.8% below its estimated fair value. The current Cyclically Adjusted Revenue per Share is $28.15. Microsoft's overall GF Score™ is 95/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Cyclically Adjusted Revenue per Share calculated?
Cyclically Adjusted Revenue per Share is calculated from a company's financial statements. For Microsoft (LIM:MSFT), the current Cyclically Adjusted Revenue per Share is $28.15 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Microsoft (LIM:MSFT) Overvalued in 2026?
Based on GuruFocus' analysis, Microsoft stock appears to be undervalued.
The current stock price of $399.76 is trading 28.8% below its estimated GF Value™ of $561.73.
GuruFocus considers Microsoft to be Modestly Undervalued.
Key valuation signals for LIM:MSFT:
Cyclically Adjusted Revenue per Share: $28.15
GF Value™: $561.73 vs. price of $399.76 (28.8% below fair value)
No single metric tells the full story. See the LIM:MSFT stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
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).
95GF Score
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