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MicrosoftXSWX:MSFT +0.91%99 Shiller PE Ratio is 46.15 as of Aug. 02, 2026, which is 16% below its 10-year median of 54.76. GuruFocus rates XSWX:MSFT with a GF Score™ of 99/100 and a GF Value™ of CHF450.33 (Modestly Undervalued). The stock has 2 warning signs investors should review. Among 1,018 Software companies, Microsoft ranks worse than 72.2% on this metric.
As of today (2026-08-02), Microsoft's current share price is CHF366.45. Microsoft's E10 for the quarter that ended in Jun. 2026 was CHF7.94. Microsoft's Shiller PE Ratio for today is 46.15.
The historical rank and industry rank for Microsoft's Shiller PE Ratio or its related term are showing as below:
XSWX:MSFT'
s Shiller PE Ratio Range Over the Past 10 Years
Min: 25.55 Med: 54.76 Max: 85.14
Current: 47.07
During the past years, Microsoft's highest Shiller PE Ratio was 85.14. The lowest was 25.55. And the median was 54.76.
XSWX:MSFT's Shiller PE Ratio is ranked worse than 72.2% of 1018
companies
in the Software industry
Industry Median: 27.36
vs XSWX:MSFT: 47.07
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 Jun. 2026 was CHF3.845. Add all the adjusted EPS for the past 10 years together and divide 10 will get our E10, which is CHF7.94 for the trailing ten years ended in Jun. 2026.
Shiller PE for Stocks: The True Measure of Stock Valuation
Microsoft (XSWX: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
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.
XSWX:MSFT vs ORCL, PLTR, 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.
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
* 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 Jun. 2026 is calculated as:
For example, Microsoft's adjusted earnings per share data for the three months ended in Jun. 2026 was:
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 (XSWX:MSFT) has a Shiller PE Ratio of 46.15 as of Aug. 02, 2026. Shiller price-earnings ratio is the ratio of share price to a company's inflation-adjusted earnings over a 10-year period. View historical data on Microsoft and its competitors. This is 16% below median its historical median of 54.76. Over the past decade, Microsoft's Shiller PE Ratio has ranged from 25.55 to 85.14. According to the industry distribution chart, Microsoft ranks #735 out of 1018 companies in the Software industry, placing it in the top 72.2%.
Is Microsoft's Shiller PE Ratio too high?
Microsoft's current Shiller PE Ratio of 46.15 is 16% below median its 10-year median of 54.76. Over the past 10 years, this metric has ranged from a low of 25.55 to a high of 85.14. The Software industry median Shiller PE Ratio is 27.36. Microsoft's value of 46.15 is 68.7% above this industry median. Based on the distribution chart, Microsoft ranks #735 out of 1018 companies in the Software industry, which is below the industry midpoint. 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 Shiller PE Ratio compare to ORCL and PLTR?
According to the Software industry distribution chart, Microsoft ranks #735 out of 1018 companies for Shiller PE Ratio. This places Microsoft in the lower half of its industry. The industry median Shiller PE Ratio is 27.36. Microsoft's value of 46.15 is 68.7% above this benchmark. Historically, Microsoft's own Shiller PE Ratio has ranged from 25.55 to 85.14 over the past decade. While the company's 10-year median is 54.76 vs. the industry median of 27.36, 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 Shiller PE Ratio for a Software company?
The median Shiller PE Ratio among Software companies is 27.36, based on 1,018 companies in the industry. Companies in the top quartile (top 25%) have a Shiller PE Ratio significantly above this median, while those in the bottom quartile fall well below. However, Shiller PE Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Microsoft's current Shiller PE Ratio of 46.15 is 68.7% 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 Shiller PE Ratio mean?
A high Shiller PE Ratio can signal that a stock is expensive relative to its fundamentals. Shiller price-earnings ratio is the ratio of share price to a company's inflation-adjusted earnings over a 10-year period. View historical data on Microsoft and its competitors. For the Software industry, the median Shiller PE Ratio is 27.36 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Microsoft's current Shiller PE Ratio is 46.15, which is 16% below median its own 10-year median of 54.76. 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 CHF450.33, compared to a current price of CHF366.45 — trading 18.6% below its estimated fair value. The current Shiller PE Ratio is 46.15, which is 16% below median its 10-year median of 54.76 and 68.7% above the Software industry median of 27.36. Microsoft's overall GF Score™ is 99/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Shiller PE Ratio calculated?
Shiller PE Ratio is calculated from a company's financial statements. For Microsoft (XSWX:MSFT), the current Shiller PE Ratio is 46.15 as of Aug. 02, 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 CHF366.45 is trading 18.6% below its estimated GF Value™ of CHF450.33.
GuruFocus considers Microsoft to be Modestly Undervalued.
Key valuation signals for XSWX:MSFT:
Shiller PE Ratio: 46.15 (16% below median its 10-year median of 54.76)
GF Value™: CHF450.33 vs. price of CHF366.45 (18.6% below fair value)
Industry Position: 68.7% above the Software median (#735 of 1018)
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 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
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