Microsoft Stock

Microsoft P/E 2024

Microsoft P/E

34.55

Ticker

MSFT

ISIN

US5949181045

WKN

870747

As of Jul 23, 2024, Microsoft's P/E ratio was 34.55, a 0.61% change from the 34.34 P/E ratio recorded in the previous year.

The Microsoft P/E history

Microsoft Aktienanalyse

What does Microsoft do?

Microsoft is an American company known worldwide for its computer software and hardware. It was founded in 1975 by Bill Gates and Paul Allen in Albuquerque, New Mexico. The success story of Microsoft began in the 1980s with the introduction of MS-DOS, an operating system for IBM-compatible PCs. The company gained its dominant market position through contracts with IBM and the acquisition of MS-DOS rights from Seattle Computer Products. Microsoft expanded its product range and introduced new operating systems, becoming a global leader in the PC software market. Microsoft's business model focuses on providing software, services, and hardware. The company specializes in three main areas: productivity and business processes, intelligent cloud computing, and personal computers and devices. The productivity and business processes area includes products like Microsoft Office and Dynamics 365. Microsoft Azure and Power BI are part of the intelligent cloud computing area, while personal computers and devices include devices like Xbox and the Surface product line. Microsoft has also positioned itself in other areas, such as Windows phones, Cortana (Microsoft's digital assistant), and Skype (communication service). The company completed a merger with LinkedIn, the world's largest professional network, to expand its position in the productivity software area. In summary, Microsoft is an American company known worldwide for its computer software and hardware. It focuses on three main areas: productivity and business processes, intelligent cloud computing, and personal computers and devices. Microsoft gained worldwide fame through its operating systems like MS-DOS and has since become a market leader in the software industry. Microsoft ist eines der beliebtesten Unternehmen auf Eulerpool.com.

Microsoft revenue by segment

In the annual report of the Microsoft share (US5949181045, 870747, MSFT), it breaks down its revenues into 3 segments: 1. Intelligent Cloud, 2. More Personal Computing, 3. Productivity & Business Processes. The Microsoft stock (WKN: 870747, ISIN: US5949181045, Ticker Symbol: MSFT) is a leading investment for investors interested in participating in the Information Technology sector.

  • 34 % Intelligent Cloud

  • 34 % More Personal Computing

  • 32 % Productivity & Business Processes

P/E Details

Deciphering Microsoft's P/E Ratio

The Price to Earnings (P/E) Ratio of Microsoft is a vital metric that investors and analysts use to determine the company’s market value relative to its earnings. It is calculated by dividing the current stock price by the earnings per share (EPS). A higher P/E ratio could suggest that investors are expecting higher future growth, while a lower ratio may indicate a potentially undervalued company or lower growth expectations.

Year-to-Year Comparison

Assessing Microsoft's P/E ratio on a yearly basis provides insights into the valuation trends and investor sentiment. An increasing P/E ratio over the years signifies growing investor confidence and expectations for future earnings growth, while a decreasing ratio may reflect concerns over the company's profitability or growth prospects.

Impact on Investments

The P/E ratio of Microsoft is a key consideration for investors aiming to balance risk and reward. A comprehensive analysis of this ratio, in conjunction with other financial indicators, aids investors in making informed decisions regarding buying, holding, or selling the company’s stocks.

Interpreting P/E Ratio Fluctuations

Fluctuations in Microsoft’s P/E ratio can be attributed to various factors including changes in earnings, stock price movements, and shifts in investor expectations. Understanding the underlying reasons for these fluctuations is essential for predicting future stock performance and assessing the company's intrinsic value.

Frequently Asked Questions about Microsoft stock

What is the price-to-earnings ratio of Microsoft?

The price-earnings ratio of Microsoft is currently 34.55.

How has the price-earnings ratio of Microsoft changed compared to last year?

The price-to-earnings ratio of Microsoft has increased by 0.61% increased compared to last year.

What consequences does a high price-earnings ratio have for investors?

A high price-to-earnings ratio indicates that the company's stock is relatively expensive and investors may potentially achieve a lower return.

What does a low price-earnings ratio mean?

A low price-earnings ratio means that the company's stock is relatively cheap and investors may potentially achieve a higher return.

Is the price-earnings ratio of Microsoft high compared to other companies?

Yes, the price-to-earnings ratio of Microsoft is high compared to other companies.

How does an increase in the price-earnings ratio of Microsoft affect the company?

An increase in the price-earnings ratio of Microsoft would lead to a higher market capitalization of the company, which in turn would lead to a higher valuation of the company.

How does a reduction in the price-to-earnings ratio of Microsoft affect the company?

A decrease in the price-earnings ratio of Microsoft would result in a lower market capitalization of the company, which in turn would lead to a lower valuation of the company.

What are some factors that influence the price-earnings ratio of Microsoft?

Some factors that influence the price-earnings ratio of Microsoft are the company's growth, financial position, industry development, and the overall economic situation.

How much dividend does Microsoft pay?

Over the past 12 months, Microsoft paid a dividend of 2.79 USD . This corresponds to a dividend yield of about 0.64 %. For the coming 12 months, Microsoft is expected to pay a dividend of 3.66 USD.

What is the dividend yield of Microsoft?

The current dividend yield of Microsoft is 0.64 %.

When does Microsoft pay dividends?

Microsoft pays a quarterly dividend. This is distributed in the months of December, March, June, September.

How secure is the dividend of Microsoft?

Microsoft paid dividends every year for the past 27 years.

What is the dividend of Microsoft?

For the upcoming 12 months, dividends amounting to 3.66 USD are expected. This corresponds to a dividend yield of 0.84 %.

In which sector is Microsoft located?

Microsoft is assigned to the 'Information technology' sector.

Wann musste ich die Aktien von Microsoft kaufen, um die vorherige Dividende zu erhalten?

To receive the latest dividend of Microsoft from 9/12/2024 amounting to 0.75 USD, you needed to have the stock in your portfolio before the ex-date on 8/15/2024.

When did Microsoft pay the last dividend?

The last dividend was paid out on 9/12/2024.

What was the dividend of Microsoft in the year 2023?

In the year 2023, Microsoft distributed 2.54 USD as dividends.

In which currency does Microsoft pay out the dividend?

The dividends of Microsoft are distributed in USD.

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Andere Kennzahlen von Microsoft

Our stock analysis for Microsoft Revenue stock includes important financial indicators such as revenue, profit, P/E ratio, P/S ratio, EBIT, as well as information on dividends. We also assess aspects such as stocks, market capitalization, debt, equity, and liabilities of Microsoft Revenue. If you are looking for more detailed information on these topics, we offer comprehensive analyses on our subpages.