Microsoft (MSFT) fundamentals: P/E, valuation, undervalued?
Microsoft · Information Technology · ref. ETF XLK · price $543.45
In short — Microsoft trades at 30.6× earnings (P/E), 23.0× forward, with a net margin of 40.3 % and revenue growth of +18 %. Read: Cheap for the growth (P/E 23 for ~32% growth (PEG 0.7)).
Is Microsoft stock cheap or undervalued? A good time to buy? Here are its fundamentals — P/E, PEG, margin and income statement — to judge its valuation.
📈 1-year price
$543.45+5.8% over range
Oct 14, 25low $352.83 · high $543.45Oct 13, 26
📏 Click 2 points (left → right) to measure the change · click again to clear.
SellBuy
Buy
100% recommend buying · 26 analysts
Valuation : Cheap for the growth — P/E 23 for ~32% growth (PEG 0.7)
Valuation
30.6
P/E (price/earnings)
23.0
Forward P/E
0.97
PEG
9.1
Price/book (P/B)
$4.04T
Market cap
17.75
EPS
Profitability & growth
40.3 %
Net margin
+18 %
Revenue growth
+32 %
Earnings growth
$128.8B
Total debt
Microsoft income statement
| Fiscal year | Revenue | Net income | Margin |
|---|---|---|---|
| 2023 | $211.9B | $72.4B | 34.1 % |
| 2024 | $245.1B | $88.1B | 36.0 % |
| 2025 | $281.7B | $101.8B | 36.1 % |
| 2026 | $331.8B | $133.7B | 40.3 % |
⚠️ Indicative financial data (Yahoo Finance), not investment advice. Amounts in $.
Frequently asked questions
What is Microsoft's P/E and is the stock undervalued? What's a good P/E?
Microsoft's P/E is 30.6 (forward 23.0). Below ~15 = fairly cheap, above ~30 = expensive. Our valuation verdict: "Cheap for the growth".
Is Microsoft profitable?
Microsoft has a net margin of 40.3 % (EPS 17.75). The company is profitable.
Is MSFT stock expensive?
Our read: "Cheap for the growth" — P/E 23 for ~32% growth (PEG 0.7). Cross-check with growth and sector.
💬 A question about Microsoft? The JPI assistant answers using our backtest data.