Microsoft Stock

Microsoft EV/EBIT

The EV/EBIT (Enterprise Value to EBIT) of Microsoft (MSFT) as of Aug 7, 2026 is 22.48. In the previous year, EV/EBIT (Enterprise Value to EBIT) was 26.40 — a change of -14.86% (lower).

EV/EBIT

22.48

YoY

-14.86%

Last updated:

EV/EBIT (Enterprise Value to EBIT) of Microsoft is 2026 22.48 . EV/EBIT (Enterprise Value to EBIT) of Microsoft was 2025 26.40 . It decreases by -14.86% lower compared to the previous year.

The Microsoft EV/EBIT history

  • 3 Years

  • 10 Years

  • 25 Years

  • Max

PRICE-TO-EBIT
Date
PRICE-TO-EBIT
Jan 1, 2019
26.57 base
Jan 1, 2020
30.49 base
Jan 1, 2021
36.23 base
Jan 1, 2022
21.49 base
Jan 1, 2023
31.72 base
Jan 1, 2024
28.76 base
Jan 1, 2025
28.07 base
Jan 1, 2026 (e)
29.09 base
YEARPRICE-TO-EBIT
2026 est 29.09
2025 28.07
2024 28.76
2023 31.72
2022 21.49
2021 36.23
2020 30.49
2019 26.57
2018 20.88
2017 21.11
2016 18.66
2015 24.59
2014 13.88
2013 11.73
2012 10.36
2011 8.09
2010 9.93
2009 13.40
2008 7.78
2007 18.35
2006 18.02
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Microsoft Valuation

Details

Historical Valuation Multiples

Price-to-Earnings Ratio (P/E)

The P/E ratio divides Microsoft's share price by its earnings per share. It tells you how many years of current earnings you are "paying for" when you buy the stock. A P/E of 20 means you pay $20 for every $1 of annual earnings. The S&P 500 historically trades at an average P/E of roughly 15–17. A P/E significantly above that may signal high growth expectations; one below may indicate undervaluation — or declining business quality.

Price-to-Sales Ratio (P/S)

The P/S ratio divides market capitalization by total revenue. Unlike the P/E ratio, it works even for companies that are not yet profitable, making it essential for evaluating high-growth firms. A P/S below 1.0 may indicate undervaluation, while ratios above 10 are typically reserved for fast-growing tech or SaaS companies with high expected future margins.

Price-to-EBIT Ratio

This ratio relates Microsoft's market price to its operating earnings, excluding the effects of debt structure and tax jurisdiction. It is particularly useful for comparing companies across different countries or with different levels of leverage, because it focuses purely on operational profitability. Lower values suggest cheaper operational earnings.

How to Use This Chart

This chart plots Microsoft's valuation multiples over time. Compare the current P/E, P/S, and P/EBIT to their own historical averages — if the current ratio is well below the multi-year average, the stock may be relatively cheap compared to its own track record. Combine this with industry comparisons: a P/E that looks high in absolute terms may be justified if Microsoft grows earnings faster than its peers.

Microsoft Stock analysis

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 is one of the most popular companies on Eulerpool.

Frequently Asked Questions about Microsoft stock

EV/EBIT (Enterprise Value to EBIT) of Microsoft is 22.48 in 2026.

EV/EBIT (Enterprise Value to EBIT) of Microsoft changed from 26.40 to 22.48, representing a -14.86% change. The value is lower than the previous year.

On Eulerpool you can find the complete historical development of EV/EBIT (Enterprise Value to EBIT) Microsoft since 2006 – with annual values, charts, and detailed analysis.

The EV/EBIT ratio measures a company's enterprise value relative to its operating earnings. It accounts for debt, making it useful for comparing companies with different capital structures.

EV/EBIT = Enterprise Value / Earnings Before Interest and Taxes

To evaluate EV/EBIT (Enterprise Value to EBIT)'s, it is essential to compare it with peers in the same industry and sector. On Eulerpool, you can find direct industry comparisons for EV/EBIT (Enterprise Value to EBIT).

A 'good' varies by industry and company stage. On Eulerpool, you can compare EV/EBIT (Enterprise Value to EBIT)'s Microsoft with sector peers and the industry average to assess whether it is attractive.

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Valuation — Microsoft

All Key Metrics — Microsoft