Microsoft (MIL:1MSFT) Shiller PE Ratio: (As of Sep. 21, 2026)

Author: Vera Yuan Vera Yuan
Vera Yuan
Vera Yuan
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.
Reviewed by: Charlie Tian Charlie Tian
Charlie Tian
Charlie Tian
Founder & CEO of GuruFocus
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.

MIL:1MSFT Microsoft Corp MIL:1MSFT
100 GF Score
Price €430.40
GF Value €511.05
Valuation Modestly Undervalued
! 3 Warning Signs
View Full Analysis

What is Microsoft Shiller PE Ratio?

Shiller PE for Stocks: The True Measure of Stock Valuation


Microsoft  (MIL:1MSFT) 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


Microsoft Shiller PE Ratio Historical Data

* Premium members only.

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.

Microsoft Shiller PE Ratio Chart

Microsoft Annual Data
Trend Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23 Jun24 Jun25 Jun26
Shiller PE Ratio
Get a 7-Day Free Trial Premium Member Only Premium Member Only 59.27 63.22 71.30 59.03 37.29

Microsoft Quarterly Data
Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26 Jun26
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 58.11 57.99 52.42 37.77 36.70

MIL:1MSFT vs PLTR, ORCL, PANW: Shiller PE Ratio Comparison

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 Shiller PE Ratio vs 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.


MIL:1MSFT
100GF Score
Microsoft Corp MIL:1MSFT
Shiller PE Ratio is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

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 E10 for the quarter that ended in Jun. 2026 is calculated as:

For example, Microsoft's adjusted earnings per share data for the three months ended in Jun. 2026 was:

Adj_EPS=Earnings per Share (Diluted)/CPI of Jun. 2026 (Change)*Current CPI (Jun. 2026)
=4.1329/333.9520*333.9520
=4.133

Current CPI (Jun. 2026) = 333.9520.

Microsoft Quarterly Data

Earnings per Share (Diluted) CPI Adj_EPS
201609 0.645 241.428 0.892
201612 0.742 241.432 1.026
201703 0.657 243.801 0.900
201706 0.936 244.955 1.276
201709 0.716 246.819 0.968
201712 -0.696 246.524 -0.943
201803 0.773 249.554 1.034
201806 0.957 251.989 1.268
201809 0.980 252.439 1.297
201812 0.947 251.233 1.258
201903 1.004 254.202 1.319
201906 1.522 256.143 1.984
201909 1.241 256.759 1.614
201912 1.368 256.974 1.778
202003 1.272 258.115 1.645
202006 1.330 257.797 1.723
202009 1.557 260.280 1.998
202012 1.703 260.474 2.183
202103 1.689 264.877 2.130
202106 1.802 271.696 2.215
202109 2.299 274.310 2.798
202112 2.173 278.802 2.603
202203 1.979 287.504 2.299
202206 2.093 296.311 2.359
202209 2.329 296.808 2.620
202212 2.156 296.797 2.426
202303 2.285 301.836 2.528
202306 2.471 305.109 2.705
202309 2.746 307.789 2.979
202312 2.724 306.746 2.965
202403 2.705 312.332 2.893
202406 2.739 314.175 2.912
202409 3.006 315.301 3.184
202412 3.026 315.605 3.202
202503 3.289 319.799 3.434
202506 3.220 322.561 3.334
202509 3.180 324.800 3.270
202512 4.429 324.054 4.564
202603 3.648 330.213 3.690
202606 4.133 333.952 4.133

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.

Is Microsoft (MIL:1MSFT) Overvalued in 2026?

Based on GuruFocus' analysis, Microsoft stock appears to be undervalued. The current stock price of €430.40 is trading 15.8% below its estimated GF Value™ of €511.05. GuruFocus considers Microsoft to be Modestly Undervalued.

Key valuation signals for MIL:1MSFT:

  • Shiller PE Ratio:
  • GF Value™: €511.05 vs. price of €430.40 (15.8% below fair value)
  • GF Score™: 100/100 with 3 warning signs

No single metric tells the full story. See the MIL:1MSFT 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).
100GF Score

Get the complete analysis for MIL:1MSFT

Shiller PE Ratio is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

€430.40
Price
€511.05
GF Value