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Microsoft (MEX:MSFT) Shiller PE Ratio : 52.40 (As of Mar. 22, 2025)


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What is Microsoft Shiller PE Ratio?

As of today (2025-03-22), Microsoft's current share price is MXN7866.52. Microsoft's E10 for the quarter that ended in Dec. 2024 was MXN150.12. Microsoft's Shiller PE Ratio for today is 52.40.

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

MEX:MSFT' s Shiller PE Ratio Range Over the Past 10 Years
Min: 18.57   Med: 50.02   Max: 85.14
Current: 53.65

During the past years, Microsoft's highest Shiller PE Ratio was 85.14. The lowest was 18.57. And the median was 50.02.

MEX:MSFT's Shiller PE Ratio is ranked worse than
67.67% of 829 companies
in the Software industry
Industry Median: 34.81 vs MEX:MSFT: 53.65

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.

Microsoft's adjusted earnings per share data for the three months ended in Dec. 2024 was MXN67.364. Add all the adjusted EPS for the past 10 years together and divide 10 will get our E10, which is MXN150.12 for the trailing ten years ended in Dec. 2024.

Shiller PE for Stocks: The True Measure of Stock Valuation


Microsoft Shiller PE Ratio Historical Data

The historical data trend for Microsoft's Shiller PE 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 Shiller PE Ratio Chart

Microsoft Annual Data
Trend Jun15 Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23 Jun24
Shiller PE Ratio
Get a 7-Day Free Trial Premium Member Only Premium Member Only 64.94 71.27 52.50 59.96 66.78

Microsoft Quarterly Data
Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24
Shiller PE 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 61.47 65.40 66.78 61.68 58.46

Competitive Comparison of Microsoft's Shiller PE Ratio

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

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

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



Microsoft Shiller PE Ratio Calculation

For Shiller PE Ratio, the earnings of the past 10 years are inflation-adjusted and averaged. The result is used for P/E calculation. Since it looks at the average over the last 10 years, the Shiller PE Ratio is also called PE10.

The Shiller PE Ratio was first used by professor Robert Shiller to measure the valuation of the overall market. The same calculation is applied here to individual companies.

Microsoft's Shiller PE Ratio for today is calculated as

Shiller PE Ratio=Share Price/ E10
=7866.52/150.12
=52.40

* 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's E10 for the quarter that ended in Dec. 2024 is calculated as:

For example, Microsoft's adjusted earnings per share data for the three months ended in Dec. 2024 was:

Adj_EPS=Earnings per Share (Diluted)/CPI of Dec. 2024 (Change)*Current CPI (Dec. 2024)
=67.364/133.1571*133.1571
=67.364

Current CPI (Dec. 2024) = 133.1571.

Microsoft Quarterly Data

Earnings per Share (Diluted) CPI Adj_EPS
201503 9.299 99.621 12.429
201506 -6.276 100.684 -8.300
201509 10.308 100.392 13.672
201512 10.661 99.792 14.225
201603 8.091 100.470 10.723
201606 7.212 101.688 9.444
201609 13.922 101.861 18.199
201612 16.494 101.863 21.561
201703 13.180 102.862 17.062
201706 15.003 103.349 19.330
201709 15.244 104.136 19.492
201712 -16.104 104.011 -20.617
201803 17.259 105.290 21.827
201806 22.400 106.317 28.055
201809 21.324 106.507 26.660
201812 21.206 105.998 26.639
201903 22.114 107.251 27.456
201906 32.847 108.070 40.472
201909 27.244 108.329 33.488
201912 28.479 108.420 34.977
202003 32.827 108.902 40.139
202006 33.700 108.767 41.257
202009 40.206 109.815 48.752
202012 40.381 109.897 48.928
202103 41.495 111.754 49.442
202106 43.196 114.631 50.177
202109 55.723 115.734 64.112
202112 50.875 117.630 57.591
202203 44.202 121.301 48.522
202206 44.863 125.017 47.784
202209 47.270 125.227 50.264
202212 42.891 125.222 45.609
202303 44.161 127.348 46.176
202306 46.117 128.729 47.703
202309 52.083 129.860 53.406
202312 49.735 129.419 51.171
202403 48.793 131.776 49.304
202406 54.044 132.554 54.290
202409 64.978 133.029 65.041
202412 67.364 133.157 67.364

Add all the adjusted EPS together and divide 10 will get our E10.

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.


Microsoft  (MEX:MSFT) Shiller PE Ratio Explanation

Compared with the regular PE Ratio, which works poorly for cyclical businesses, the Shiller PE Ratio smoothed out the fluctuations of profit margins during business cycles. Therefore it is more accurate in reflecting the valuation of the company.

If a company has consistent business performance, the Shiller PE Ratio should give similar results to regular PE Ratio.

Compared with the PS Ratio, the Shiller PE Ratio makes the comparison between different industries more meaningful.


Be Aware

Shiller PE Ratio assumes that over the long term, businesses and profitability revert to their means. If a company's business model does not work in the future compared with the past, Shiller PE Ratio and PS Ratio will give false valuations.


Microsoft Shiller PE Ratio Related Terms

Thank you for viewing the detailed overview of Microsoft's Shiller PE 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).