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MicrosoftXSWX:MSFT -1.23%94 3-Year Share Buyback Ratio is 0.10 as of Mar. 2026, which is 75% below its 10-year median of 0.40. GuruFocus rates XSWX:MSFT with a GF Score™ of 94/100 and a GF Value™ of CHF443.51 (Modestly Undervalued). The stock has 2 warning signs investors should review. Among 2,137 Software companies, Microsoft ranks better than 78.33% on this metric.
Shares Outstanding (EOP) are shares that have been authorized, issued, and purchased by investors and are held by them.
3-Year Share Buyback Ratio measures the average annual proportion of a company's outstanding shares repurchased over the past three years. It is calculated as the annualized percentage change in shares outstanding from three years ago to the current year. A positive ratio may indicate share buybacks over the period, while a zero or negative ratio may reflect no repurchases or potential share issuance. Microsoft's current 3-Year Share Buyback Ratio was 0.10%.
The historical rank and industry rank for Microsoft's 3-Year Share Buyback Ratio or its related term are showing as below:
XSWX:MSFT'
s 3-Year Share Buyback Ratio Range Over the Past 10 Years
Min: -3.5 Med: 0.4 Max: 5.1
Current: 0.1
During the past 13 years, Microsoft's highest 3-Year Share Buyback Ratio was 5.10%. The lowest was -3.50%. And the median was 0.40%.
XSWX:MSFT's 3-Year Share Buyback Ratio is ranked better than 78.33% of 2137
companies
in the Software industry
Industry Median: -1.6
vs XSWX:MSFT: 0.10
Microsoft (XSWX:MSFT) 3-Year Share Buyback Ratio Explanation
A negative number means the company might be issuing new shares. A positive number indicates that the company is buying back shares.
Be Aware
Investors usually like share buybacks. But as pointed by Warren Buffett, only if a company buys back shares at the prices below the stock's intrinsic value, it rewards remaining shareholders. If a company buys its overvalued stocks back, it destroys shareholder value.
Microsoft 3-Year Share Buyback Ratio Related Terms
XSWX:MSFT vs ORCL, PLTR, PANW: 3-Year Share Buyback Ratio Comparison
For the Software - Infrastructure subindustry, Microsoft's 3-Year Share Buyback Ratio, along with its competitors' market caps and 3-Year Share Buyback 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 3-Year Share Buyback Ratio vs Software Industry
For the Software industry and Technology sector, Microsoft's 3-Year Share Buyback Ratio distribution charts can be found below:
* The bar in red indicates where Microsoft's 3-Year Share Buyback Ratio falls into.
This is the annualized percentage change in shares outstanding from three years ago to the current year. The annualized percentage change is calculated with expontential compound based on the latest four years of annual data on Shares Outstanding (EOP).
Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the average dividends per share growth rate.
What does a 3-Year Share Buyback Ratio of 0.10 mean?
Microsoft (XSWX:MSFT) has a 3-Year Share Buyback Ratio of 0.10 as of Mar. 2026. The 3-Year Share Buyback Ratio measures the average annual proportion of a company's outstanding shares repurchased over the past three years. It is calculated as the annualized percentage change in shares outstanding from three years ago to the current year. View historical data for Microsoft and its competitors. This is 75% below median its historical median of 0.40. According to the industry distribution chart, Microsoft ranks #463 out of 2137 companies in the Software industry, placing it in the top 21.7%.
Is Microsoft's 3-Year Share Buyback Ratio too high?
Microsoft's current 3-Year Share Buyback Ratio of 0.10 is 75% below median its 10-year median of 0.40. Based on the distribution chart, Microsoft ranks #463 out of 2137 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, Microsoft has a GF Score™ of 94/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Microsoft's 3-Year Share Buyback Ratio compare to ORCL and PLTR?
According to the Software industry distribution chart, Microsoft ranks #463 out of 2137 companies for 3-Year Share Buyback Ratio. This places Microsoft in the top 22% of its industry — outperforming the majority of peers. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 3-Year Share Buyback Ratio for a Software company?
A good 3-Year Share Buyback Ratio depends on the Software industry context. However, 3-Year Share Buyback Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high 3-Year Share Buyback Ratio mean?
A high 3-Year Share Buyback Ratio can signal that a stock is expensive relative to its fundamentals. The 3-Year Share Buyback Ratio measures the average annual proportion of a company's outstanding shares repurchased over the past three years. It is calculated as the annualized percentage change in shares outstanding from three years ago to the current year. View historical data for Microsoft and its competitors. Microsoft's current 3-Year Share Buyback Ratio is 0.10, which is 75% below median its own 10-year median of 0.40. 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 CHF443.51, compared to a current price of CHF316.20 — trading 28.7% below its estimated fair value. The current 3-Year Share Buyback Ratio is 0.10, which is 75% below median its 10-year median of 0.40. Microsoft's overall GF Score™ is 94/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 3-Year Share Buyback Ratio calculated?
3-Year Share Buyback Ratio is calculated from a company's financial statements. For Microsoft (XSWX:MSFT), the current 3-Year Share Buyback Ratio is 0.10 as of Mar. 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 CHF316.20 is trading 28.7% below its estimated GF Value™ of CHF443.51.
GuruFocus considers Microsoft to be Modestly Undervalued.
Key valuation signals for XSWX:MSFT:
3-Year Share Buyback Ratio: 0.10 (75% below median its 10-year median of 0.40)
GF Value™: CHF443.51 vs. price of CHF316.20 (28.7% below fair value)
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).
94GF Score
Get the complete analysis for XSWX:MSFT
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