What is Microsoft's PEG Ratio?

• Microsoft's trailing twelve month (TTM) PEG ratio is 15.67.
• Microsoft's annual PEG ratio as of today is 1.75.
• Microsoft's quarterly PEG ratio is 113.62.

What is the PEG Ratio?

The PEG ratio (Price/Earnings to Growth ratio) is a valuation metric for determining the relative trade-off between the price of a stock, the earnings generated per share (EPS), and the company's expected growth. A lower PEG ratio suggests that a stock may be undervalued given its earnings performance and growth potential.

How is the PEG Ratio calculated?

The PEG ratio is calculated by dividing the P/E ratio by the annual EPS growth. The formula is:

PEG Ratio = (P/E Ratio) / (EPS Growth Rate)

This helps investors to determine a stock's value while considering the company's earnings growth.

Related Metrics

Other important metrics to assess Microsoft's financial health include:

• P/E Ratio (Price to Earnings Ratio) - measures the company's current share price relative to its per-share earnings:
  • Annual: 38.51
  • Quarterly: 38.52
  • TTM: 35.14
• P/S Ratio (Price to Sales Ratio) - compares the company's stock price to its revenues:
  • Annual: 13.85
  • Quarterly: 52.45
  • TTM: 12.64
• P/B Ratio (Price to Book Ratio) - compares the company's market value to its book value:
  • Annual: 12.64
  • Quarterly: 12.64
  • TTM: 11.54
• P/CF Ratio (Price to Cash Flow Ratio) - compares the company's market value to its cash flow:
  • Annual: 28.63
  • Quarterly: 91.27
  • TTM: 26.13

These metrics provide insights into Microsoft's financial health and its ability to meet short-term obligations. Comparing these ratios with industry benchmarks can offer a deeper understanding of the company's performance.

Microsoft Historical PEG Ratio

Historical P/E Ratio

Historical P/S Ratio

Historical P/B Ratio

Historical P/CF Ratio