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Microsoft Corp  (NAS:MSFT) PEG Ratio: 7.04 (As of Today)
PE(NRI) Ratio / EBITDA 5-Y Growth

PEG is defined as the PE Ratio without NRI divided by the growth ratio. The growth rate we use is the 5-year average EBITDA growth rate. As of today, Microsoft Corp's PE Ratio without NRI is 28.17. Microsoft Corp's 5-year average EBITDA growth rate is 4.00%. Therefore, Microsoft Corp's PEG for today is 7.04.


NAS:MSFT' s PEG Ratio Range Over the Past 10 Years
Min: 0.32   Max: 957.25
Current: 7.05

0.32
957.25

During the past 13 years, Microsoft Corp's highest PEG was 957.25. The lowest was 0.32. And the median was 1.44.


NAS:MSFT's PEG Ratio is ranked lower than
84% of the 600 Companies
in the Global industry.

( Industry Median: 1.99 vs. NAS:MSFT: 7.05 )

Peter Lynch thinks a company with a P/E (NRI) ratio equal to its growth rate is fairly valued.


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

* Premium members only.

Microsoft Corp Annual Data

Jun08 Jun09 Jun10 Jun11 Jun12 Jun13 Jun14 Jun15 Jun16 Jun17
PEG Ratio Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 2.65 2.36 11.43 0.00 6.11

Microsoft Corp Quarterly Data

Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17
PEG Ratio 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 Premium Member Only Premium Member Only Premium Member Only 0.00 41.85 13.58 6.11 5.22

Competitive Comparison
* 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.


Calculation

PEG is defined as the PE Ratio without NRI divided by the growth ratio. The ratio we use is the 5-year average EBITDA growth rate.

Microsoft Corp's PEG for today is calculated as

PEG=PE Ratio without NRI/EBITDA Growth Rate (5-year average)
=28.1728813559/4.00
=7.04

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.


Explanation

To compare stocks with different growth rates, Peter Lynch invented a ratio called PEG. PEG is defined as the P/E ratio divided by the growth ratio. He thinks a company with a P/E ratio equal to its growth rate is fairly valued. Still he said he would rather buy a company growing 20% a year with a P/E of 20, instead of a company growing 10% a year with a P/E of 10.


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