MicrosoftCHIX:MSFD -0.18%85 PB Ratio is 6.83 as of Jun. 24, 2026, which is 36% below its 10-year median of 10.71. GuruFocus rates CHIX:MSFD with a GF Score™ of 85/100 and a GF Value™ of €491.76 (Significantly Undervalued). The stock has 2 warning signs investors should review. Among 2,624 Software companies, Microsoft ranks worse than 84.34% on this metric.
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 (2026-06-24), Microsoft's share price is €329.50. Microsoft's Book Value per Share for the quarter that ended in Mar. 2026 was €48.25. Hence, Microsoft's PB Ratio of today is 6.83.
Good Sign:
Microsoft Corp stock PB Ratio (=6.7) is close to 5-year low of 6.65.
The historical rank and industry rank for Microsoft's PB Ratio or its related term are showing as below:
CHIX:MSFd'
s PB Ratio Range Over the Past 10 Years
Min: 5.55 Med: 10.71 Max: 16.95
Current: 6.7
During the past 13 years, Microsoft's highest PB Ratio was 16.95. The lowest was 5.55. And the median was 10.71.
CHIX:MSFd's PB Ratio is ranked worse than 84.34% of 2624
companies
in the Software industry
Industry Median: 2.37
vs CHIX:MSFd: 6.70
During the past 12 months, Microsoft's average Book Value Per Share Growth Rate was 28.80% per year.
During the past 3 years, the average Book Value Per Share Growth Rate was 27.50% per year.
During the past 5 years, the average Book Value Per Share Growth Rate was 24.20% per year.
During the past 10 years, the average Book Value Per Share Growth Rate was 17.40% per year.
During the past 13 years, the highest 3-Year average Book Value Per Share Growth Rate of Microsoft was 57.10% per year. The lowest was -21.60% per year. And the median was 21.10% per year.
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
Microsoft PB Ratio Historical Data
* Premium members only.
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.
CHIX:MSFD vs ORCL, PLTR, PANW: PB Ratio Comparison
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 PB Ratio vs 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.
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:
* 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 (CHIX:MSFD) has a PB Ratio of 6.83 as of Jun. 24, 2026. Price-to-Book ratio is the ratio of share price to a company's book value per share. View historical data on Microsoft and its competitors. This is 36% below median its historical median of 10.71. Over the past decade, Microsoft's PB Ratio has ranged from 5.55 to 16.95. According to the industry distribution chart, Microsoft ranks #2213 out of 2624 companies in the Software industry, placing it in the top 84.3%.
Is Microsoft's PB Ratio too high?
Microsoft's current PB Ratio of 6.83 is 36% below median its 10-year median of 10.71. Over the past 10 years, this metric has ranged from a low of 5.55 to a high of 16.95. The Software industry median PB Ratio is 2.37. Microsoft's value of 6.83 is 188.2% above this industry median. Based on the distribution chart, Microsoft ranks #2213 out of 2624 companies in the Software industry, which is in the bottom quartile relative to peers. Overall, Microsoft has a GF Score™ of 85/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Microsoft's PB Ratio compare to ORCL and PLTR?
According to the Software industry distribution chart, Microsoft ranks #2213 out of 2624 companies for PB Ratio. This places Microsoft in the lower half of its industry. The industry median PB Ratio is 2.37. Microsoft's value of 6.83 is 188.2% above this benchmark. Historically, Microsoft's own PB Ratio has ranged from 5.55 to 16.95 over the past decade. While the company's 10-year median is 10.71 vs. the industry median of 2.37, Microsoft has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good PB Ratio for a Software company?
The median PB Ratio among Software companies is 2.37, based on 2,624 companies in the industry. Companies in the top quartile (top 25%) have a PB Ratio significantly above this median, while those in the bottom quartile fall well below. However, PB Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Microsoft's current PB Ratio of 6.83 is 188.2% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high PB Ratio mean?
A high PB Ratio can signal that a stock is expensive relative to its fundamentals. Price-to-Book ratio is the ratio of share price to a company's book value per share. View historical data on Microsoft and its competitors. For the Software industry, the median PB Ratio is 2.37 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Microsoft's current PB Ratio is 6.83, which is 36% below median its own 10-year median of 10.71. 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 (CHIX:MSFD) is currently considered Significantly Undervalued. The stock's GF Value™ is €491.76, compared to a current price of €329.50 — trading 33% below its estimated fair value. The current PB Ratio is 6.83, which is 36% below median its 10-year median of 10.71 and 188.2% above the Software industry median of 2.37. Microsoft's overall GF Score™ is 85/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is PB Ratio calculated?
PB Ratio is calculated from a company's financial statements. For Microsoft (CHIX:MSFD), the current PB Ratio is 6.83 as of Jun. 24, 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 (CHIX:MSFD) Overvalued in 2026?
Based on GuruFocus' analysis, Microsoft stock appears to be undervalued.
The current stock price of €329.50 is trading 33% below its estimated GF Value™ of €491.76.
GuruFocus considers Microsoft to be Significantly Undervalued.
Key valuation signals for CHIX:MSFD:
PB Ratio: 6.83 (36% below median its 10-year median of 10.71)
GF Value™: €491.76 vs. price of €329.50 (33% below fair value)
Industry Position: 188.2% above the Software median (#2213 of 2624)
No single metric tells the full story. See the CHIX:MSFD 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).
85GF Score
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