Microsoft (XSWX:MSFT) Price-to-Tangible-Book: 12.06 (As of Aug. 27, 2026)

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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.
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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.

XSWX:MSFT Microsoft Corp XSWX:MSFT
99 GF Score
Price CHF394.60
GF Value CHF467.23
Valuation Modestly Undervalued
! 3 Warning Signs
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What is Microsoft Price-to-Tangible-Book?

Microsoft XSWX:MSFT +0.15% 99 Price-to-Tangible-Book is 12.06 as of Aug. 27, 2026. GuruFocus rates XSWX:MSFT with a GF Score™ of 99/100 and a GF Value™ of CHF467.23 (Modestly Undervalued). The stock has 3 warning signs investors should review. Among 2,196 Software companies, Microsoft ranks worse than 85.2% on this metric.

As of today (2026-08-27), Microsoft's share price is CHF394.60. Microsoft's Tangible Book per Share of Jun. 2026 for the quarter that ended in Jun. 2026 was CHF32.73. Hence, Microsoft's Price to Tangible Book Ratio of today is 12.06.

The historical rank and industry rank for Microsoft's Price-to-Tangible-Book or its related term are showing as below:

XSWX:MSFT' s Price-to-Tangible-Book Range Over the Past 10 Years
Min: 9.11   Med: 19.55   Max: 27.31
Current: 12.12

During the past 13 years, Microsoft's highest Price to Tangible Book Ratio was 27.31. The lowest was 9.11. And the median was 19.55.

XSWX:MSFT's Price-to-Tangible-Book is ranked worse than
85.2% of 2196 companies
in the Software industry
Industry Median: 3.315 vs XSWX:MSFT: 12.12

A closely related ratio is called PB Ratio. As of today, Microsoft's share price is CHF394.60. Microsoft's Book Value per Sharefor the quarter that ended in Jun. 2026 was CHF47.61. Hence, Microsoft's P/B Ratio of today is 8.29.


Be Aware

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


Microsoft Price-to-Tangible-Book Related Terms


Microsoft Price-to-Tangible-Book Historical Data

* Premium members only.

The historical data trend for Microsoft's Price-to-Tangible-Book 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 Price-to-Tangible-Book Chart

Microsoft Annual Data
Trend Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23 Jun24 Jun25 Jun26
Price-to-Tangible-Book
Get a 7-Day Free Trial Premium Member Only Premium Member Only 350.82 0.00 0.00 181.60 9.17

Microsoft Quarterly Data
Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26 Jun26
Price-to-Tangible-Book 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 181.60 167.98 14.64 9.95 9.17

XSWX:MSFT vs ORCL, PLTR, PANW: Price-to-Tangible-Book Comparison

For the Software - Infrastructure subindustry, Microsoft's Price-to-Tangible-Book, along with its competitors' market caps and Price-to-Tangible-Book 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 Price-to-Tangible-Book vs Software Industry

For the Software industry and Technology sector, Microsoft's Price-to-Tangible-Book distribution charts can be found below:

* The bar in red indicates where Microsoft's Price-to-Tangible-Book falls into.


XSWX:MSFT
99GF Score
Microsoft Corp XSWX:MSFT
Price-to-Tangible-Book is just one metric. See GF Score™, valuation, warning signs, and more.
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Microsoft Price-to-Tangible-Book Calculation

Microsoft's price-to-tangible-book ratio for today is calculated as:

Price to Tangible Book=Share Price/Tangible Book per Share (Q: Jun. 2026 )
=394.60/32.73
=12.06

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

Frequently Asked Questions Learn more about Price-to-Tangible-Book →
What does a Price-to-Tangible-Book of 12.06 mean?
Microsoft (XSWX:MSFT) has a Price-to-Tangible-Book of 12.06 as of Aug. 27, 2026. Price-to-tangible-book ratio is the ratio of share price to a company's tangible book value per share. View historical data on Microsoft and its competitors. According to the industry distribution chart, Microsoft ranks #1871 out of 2196 companies in the Software industry, placing it in the top 85.2%.
Is Microsoft's Price-to-Tangible-Book too high?
Microsoft's current Price-to-Tangible-Book is 12.06. The Software industry median Price-to-Tangible-Book is 3.32. Microsoft's value of 12.06 is 263.8% above this industry median. Based on the distribution chart, Microsoft ranks #1871 out of 2196 companies in the Software industry, which is in the bottom quartile relative to peers. Overall, Microsoft has a GF Score™ of 99/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Microsoft's Price-to-Tangible-Book compare to ORCL and PLTR?
According to the Software industry distribution chart, Microsoft ranks #1871 out of 2196 companies for Price-to-Tangible-Book. This places Microsoft in the lower half of its industry. The industry median Price-to-Tangible-Book is 3.32. Microsoft's value of 12.06 is 263.8% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Price-to-Tangible-Book for a Software company?
The median Price-to-Tangible-Book among Software companies is 3.32, based on 2,196 companies in the industry. Companies in the top quartile (top 25%) have a Price-to-Tangible-Book significantly above this median, while those in the bottom quartile fall well below. However, Price-to-Tangible-Book should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Microsoft's current Price-to-Tangible-Book of 12.06 is 263.8% 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 Price-to-Tangible-Book mean?
A high Price-to-Tangible-Book can signal that a stock is expensive relative to its fundamentals. Price-to-tangible-book ratio is the ratio of share price to a company's tangible book value per share. View historical data on Microsoft and its competitors. For the Software industry, the median Price-to-Tangible-Book is 3.32 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Microsoft's current Price-to-Tangible-Book is 12.06. 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 (XSWX:MSFT) is currently considered Modestly Undervalued. The stock's GF Value™ is CHF467.23, compared to a current price of CHF394.60 — trading 15.5% below its estimated fair value. The current Price-to-Tangible-Book is 12.06 and 263.8% above the Software industry median of 3.32. Microsoft's overall GF Score™ is 99/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Price-to-Tangible-Book calculated?
Price-to-Tangible-Book is calculated from a company's financial statements. For Microsoft (XSWX:MSFT), the current Price-to-Tangible-Book is 12.06 as of Aug. 27, 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 (XSWX:MSFT) Overvalued in 2026?

Based on GuruFocus' analysis, Microsoft stock appears to be undervalued. The current stock price of CHF394.60 is trading 15.5% below its estimated GF Value™ of CHF467.23. GuruFocus considers Microsoft to be Modestly Undervalued.

Key valuation signals for XSWX:MSFT:

  • Price-to-Tangible-Book: 12.06
  • GF Value™: CHF467.23 vs. price of CHF394.60 (15.5% below fair value)
  • GF Score™: 99/100 with 3 warning signs
  • Industry Position: 263.8% above the Software median (#1871 of 2196)

No single metric tells the full story. See the XSWX:MSFT 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).
99GF Score

Get the complete analysis for XSWX:MSFT

Price-to-Tangible-Book is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

CHF394.60
Price
CHF467.23
GF Value