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Microsoft (XSGO:MSFT) PB Ratio : 10.74 (As of Dec. 14, 2024)


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What is Microsoft PB Ratio?

The PB Ratio, or Price-to-Book ratio, or Price/Book, is a financial ratio used to compare a company's market price to its Book Value per Share. As of today (2024-12-14), Microsoft's share price is $415.57. Microsoft's Book Value per Share for the quarter that ended in Sep. 2024 was $38.69. Hence, Microsoft's PB Ratio of today is 10.74.

Good Sign:

Microsoft Corp stock PB Ratio (=11.56) is close to 1-year low of 10.61

The historical rank and industry rank for Microsoft's PB Ratio or its related term are showing as below:

XSGO:MSFT' s PB Ratio Range Over the Past 10 Years
Min: 3.61   Med: 10.4   Max: 16.95
Current: 11.56

During the past 13 years, Microsoft's highest PB Ratio was 16.95. The lowest was 3.61. And the median was 10.40.

XSGO:MSFT's PB Ratio is ranked worse than
89% of 2572 companies
in the Software industry
Industry Median: 2.885 vs XSGO:MSFT: 11.56

During the past 12 months, Microsoft's average Book Value Per Share Growth Rate was 30.30% per year. During the past 3 years, the average Book Value Per Share Growth Rate was 24.10% per year. During the past 5 years, the average Book Value Per Share Growth Rate was 21.60% per year. During the past 10 years, the average Book Value Per Share Growth Rate was 13.70% per year.

During the past 13 years, the highest 3-Year average Book Value Per Share Growth Rate of Microsoft was 83.00% per year. The lowest was -21.60% per year. And the median was 21.10% per year.

Back to Basics: PB Ratio


Microsoft PB Ratio Historical Data

The historical data trend for Microsoft's 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 PB Ratio Chart

Microsoft Annual Data
Trend Jun15 Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23 Jun24
PB Ratio
Get a 7-Day Free Trial Premium Member Only Premium Member Only 12.79 14.35 11.57 12.15 12.54

Microsoft Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
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 10.95 11.70 12.21 12.54 10.60

Competitive Comparison of Microsoft's PB Ratio

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

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

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



Microsoft PB Ratio Calculation

The PB Ratio, or Price-to-Book ratio, or Price/Book, is a financial ratio used to compare a company's market price to its Book Value per Share. It is a ratio widely used to value stocks.

Microsoft's PB Ratio for today is calculated as follows:

PB Ratio=Share Price/Book Value per Share (Q: Sep. 2024)
=415.57/38.693
=10.74

* 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.

It can also be calculated from the numbers for the whole company:

A closely related ratio is called Price-to-Tangible-Book. The difference between Price-to-Tangible-Book and PB Ratio is that book value other than intangibles are used in the calculation.


Microsoft  (XSGO:MSFT) PB Ratio Explanation

Unlike valuation ratios relative to the earning power such as PE Ratio, PE Ratio without NRI, PS Ratio, Price-to-Operating-Cash-Flow , or Price-to-Free-Cash-Flow, the PB Ratio measures the valuation of the stock relative to the underlying asset of the company.

The PB Ratio works the best for the businesses that earn most of their profit from their assets, e.g. banks and insurance companies.


Be Aware

Some businesses have very light assets, such as software companies or insurance agencies. The PB Ratio does not work well for these companies. Some companies even have negative equity, so the PB Ratio cannot be applied to them.


Microsoft PB Ratio Related Terms

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


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).