Microsoft Corp PEG Ratio

Data as of August 04, 2026

How It's Calculated

What This Means

Microsoft Corp's PEG ratio of 1.34 is in the fairly valued range. The stock's PE ratio is roughly in line with its expected earnings growth rate.

About Microsoft Corp

Microsoft Corp (MSFT) operates in the Technology sector, specifically in Technology. With a market capitalization of about $3.45T, it ranks as a mega-cap stock — one of the largest publicly traded companies.

Shares recently traded near $487.65, within a 52-week range of $349.20 to $555.45 (-12.2% from the high, +39.6% from the low). Beta of 1.11 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 PEG ratio adjusts the PE multiple for expected earnings growth, helping compare fast-growing and slow-growing names on a more equal footing. For Microsoft Corp, a PEG near 1 is often described as fairly valued relative to growth, though the growth estimate itself can change quickly with guidance revisions.

Sector Comparison

Among Technology names on our S&P 100 coverage, Microsoft Corp's PEG ratio of 1.34 can be compared with peers such as AAPL (2.53), ORCL (0.58), IBM (2.25). 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 1.11 suggests higher-than-market 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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