Microsoft Corporation P/B Ratio
Data as of June 01, 2026
P/B Ratio
8.07
Stock Price
$450.24
Book Value/Share
$55.78
Sector
Technology
How It's Calculated
8.07 = $450.24 ÷ $55.78
What This Means
Microsoft Corporation's P/B ratio of 8.07 is significantly elevated, often seen in asset-light businesses like tech or services where intangible assets drive most of the value.
About Microsoft Corporation
Microsoft Corporation (MSFT) operates in the Technology sector, specifically in Software - Infrastructure. With a market capitalization of about $3.34T, it ranks as a mega-cap stock — one of the largest publicly traded companies.
Shares recently traded near $450.24, within a 52-week range of $356.28 to $555.45 (-18.9% from the high, +26.4% from the low). Beta of 1.09 is broadly in line with typical market sensitivity.
Trailing profit margin is about 39.3%, 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 Corporation, 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 Corporation's P/B ratio of 8.07 can be compared with peers such as NVDA (32.62), AAPL (42.98), AVGO (26.49). 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 1.09 suggests market-like price sensitivity.
- Trailing profit margin of 39.3% 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.
Other MSFT Metrics
Frequently Asked Questions
What does MSFT's price-to-book ratio indicate?
P/B compares share price to book value per share. Microsoft Corporation's P/B of 8.07 reflects how the market prices net assets — especially relevant for asset-heavy Technology business models.
Is 8.07 above or below book value?
A P/B above 1.0 (8.07) 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 (42.98), LRCX (37.59), NVDA (32.62)) provide context; asset-light vs asset-heavy models differ materially.
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