Microsoft MSFT
Valuation
Multiples measured against the stock's own five-year history
Below its usual level · 21st percentile, 5-year average 32.3x
#2005 of 2972 stocks by PE (1 = cheapest)
Near the bottom of its 5-year range · 11th percentile, 5-year average 11.2x
#4798 of 5311 stocks by PB (1 = cheapest)
Below its usual level · 38th percentile, 5-year average 11.6x
#4515 of 5150 stocks by PS (1 = cheapest)
P/E over five years
Dashed line is the 5-year average; the shaded band is one standard deviation either side.
Morningstar fair value estimate
| Multiple | Current | Forward | 5y average | Percentile vs. own history | Industry rank |
|---|---|---|---|---|---|
| PB | 8.24 | – | 11.22 | 11% (cheaper than usual) | #4798 of 5311 (1 = cheapest) |
| PE | 27.25 | 25.38 | 32.31 | 21% (cheaper than usual) | #2005 of 2972 (1 = cheapest) |
| PS | 11.19 | 9.37 | 11.64 | 38% (cheaper than usual) | #4515 of 5150 (1 = cheapest) |
Percentile is against this stock’s own 5-year valuation range: higher means it’s trading rich relative to its own history, lower means cheap relative to its own history — it is not a comparison against other companies. Forward multiples use consensus estimates for the next twelve months; a forward multiple below the current one usually signals analysts expect earnings to grow.
Morningstar view
Discussion
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I sold all of my Microsoft stocks a month ago and made a profit of 20%. I thought it was a temporary high point that would fall or fluctuate next, but Microsoft has continued to rise until now. Can you take a drop and give me another chance to buy.