Microsoft Corp P/B Ratio
Data as of October 02, 2026
P/B Ratio
8.61
Stock Price
$512.80
Book Value/Share
$59.56
Sector
Technology
How It's Calculated
8.61 = $512.80 ÷ $59.56
What This Means
Microsoft Corp's P/B ratio of 8.61 is above 6. Asset-light business models and unrecognized intangible assets can make book value a limited denominator; the multiple alone does not determine fair value.
About Microsoft Corp
Microsoft Corp (MSFT) operates in the Technology sector, specifically in Technology. With a market capitalization of about $3.81T, it ranks as a mega-cap stock — one of the largest publicly traded companies.
Shares recently traded near $512.80, within a 52-week range of $349.20 to $553.72 (-7.4% from the high, +46.8% from the low). Beta of 1.06 is broadly in line with typical market sensitivity.
Trailing profit margin is about 40.3%, signaling a strong profit margin relative to many peers.
Understanding This Metric
The price-to-book ratio compares market price to net asset value per share. For Microsoft Corp, P/B is especially useful when earnings are volatile or temporarily depressed. In Technology, asset-heavy business models often anchor closer to book value, while asset-light models may trade far above book.
Sector Comparison
Among Technology names on our S&P 100 coverage, Microsoft Corp's P/B ratio of 8.61 can be compared with peers such as AAPL (66.18), ORCL (9.35), IBM (6.48). Sector context helps interpretation, but each company's growth profile and balance sheet differ — use multiple metrics before drawing conclusions. View all Technology stocks.
Key Takeaways
- MSFT is grouped in the Technology sector for peer comparisons.
- Recent beta of 1.06 suggests market-like price sensitivity.
- Trailing profit margin of 40.3% provides context for how much earnings support the headline multiple.
Related Tools & Guides
Explore calculators and guides connected to this metric, or view all metrics for MSFT.
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Frequently Asked Questions
What does MSFT's price-to-book ratio indicate?
P/B compares share price to book value per share. Microsoft Corp's P/B of 8.61 reflects how the market prices net assets — especially relevant for asset-heavy Technology business models.
Is 8.61 above or below book value?
A P/B above 1.0 (8.61) means the market values MSFT above accounting book value — often due to brands, growth, or intangible assets.
How does P/B compare within Technology?
Peer P/B levels in Technology (e.g. AAPL (66.18), ADSK (14.71), ORCL (9.35)) provide context; asset-light vs asset-heavy models differ materially.
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