As of today (2025-01-10), Microsoft's share price is $424.56. Microsoft's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Sep. 2024 was $12.12. Therefore, Microsoft's PE Ratio (TTM) for today is 35.03.
The intrinsic value of one MSFT stock under the Base Case scenario is 314.54 USD. Compared to the current market price of 417.19 USD, Microsoft Corp is Overvalued by 25%.
According to Microsoft's latest financial reports and stock price the company's current price-to-earnings ratio (TTM) is 36.5272. At the end of 2023 the company had a P/E ratio of 33.9.
To give you some sense of what the average for the market is, though, many value investors would refer to 20 to 25 as the average P/E ratio range. And again, like golf, the lower the P/E ratio a company has, the better an investment the metric is saying it is.
The company expects growth to reaccelerate in the back half of fiscal 2025 as more AI capacity comes online. Overall MSFT ranks 5th on our list of the best cloud computing stocks to buy according to analysts.
Apple (AAPL) PE Ratio (TTM) : 38.55 (As of Jan. 14, 2025)
Over the last ten years, the average PE ratio of Amazon Com has been 139.76. The current 46.57 price-to-earnings ratio is 67% less than the historical average. Analyzing the last ten years, AMZN's PE ratio reached its highest point in the Sep 2015 quarter at 639.6, with a price of $25.58 and an EPS of $0.04.
During the past 13 years, the highest PE Ratio (TTM) of Tesla was 1396.86. The lowest was 31.23.
Stock Price Forecast
The 30 analysts with 12-month price forecasts for Microsoft stock have an average target of 511.07, with a low estimate of 465 and a high estimate of 600. The average target predicts an increase of 21.99% from the current stock price of 418.95.
As of 2025-01-12, the Fair Value of Microsoft Corp (MSFT) is 222.08 USD. This value is based on the Peter Lynch's Fair Value formula. With the current market price of 418.95 USD, the upside of Microsoft Corp is -47%.
Over the last ten years, the average PE ratio of Microsoft has been 30.87. The current 34.42 price-to-earnings ratio is 11% more than the historical average. Analyzing the last ten years, MSFT's PE ratio reached its highest point in the Dec 2017 quarter at 48.06, with a price of $85.54 and an EPS of $1.78.
The mean historical PE ratio of Costco Wholesale over the last ten years is 35.42. The current 54.17 P/E ratio is 53% higher than the historical average. Looking back at the last ten years, COST's PE ratio peaked in the Nov 2024 quarter at 56.47, with a price of $964.01 and an EPS of $17.07.
Google (GOOGL) PE Ratio (TTM) : 25.33 (As of Jan. 14, 2025)
Typically, the average P/E ratio is around 20 to 25. Anything below that would be considered a good price-to-earnings ratio, whereas anything above that would be a worse P/E ratio.
As of today (2025-01-13), Walmart's share price is $93.00. Walmart's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Oct. 2024 was $2.44. Therefore, Walmart's PE Ratio (TTM) for today is 38.16.
The mean historical PE ratio of Netflix over the last ten years is 122.27. The current 46.33 P/E ratio is 62% lower than the historical average. Looking back at the last ten years, NFLX's PE ratio peaked in the Dec 2015 quarter at 394.41, with a price of $114.38 and an EPS of $0.29.
According to Coca-Cola's latest financial reports and stock price the company's current price-to-earnings ratio (TTM) is 24.759. At the end of 2022 the company had a P/E ratio of 28.9.
As of today (2025-01-13), NVIDIA's share price is $133.23. NVIDIA's EPS without NRI for the trailing twelve months (TTM) ended in Oct. 2024 was $2.60. Therefore, NVIDIA's PE Ratio without NRI for today is 51.34.
P/E ratio as of January 2025 (TTM): 6.31
According to Ford's latest financial reports and stock price the company's current price-to-earnings ratio (TTM) is 6.30519. At the end of 2022 the company had a P/E ratio of -23.3.
Microsoft has a volatility of 1.34 and is 1.61 times more volatile than Dow Jones Industrial. 11 percent of all equities and portfolios are less risky than Microsoft. You can use Microsoft to protect your portfolios against small market fluctuations.
Microsoft Stocks Price Target for 2030
We estimate Microsoft's stock price to be $717.00 per share with a sub 10% year-over-year revenue growth. Our estimated stock price will be 71.46% higher than the current stock price of $418.18.
(Bloomberg) -- Microsoft Corp. shares dropped the most in two years after the software maker forecast slower quarterly cloud revenue growth, reflecting the company's struggle to bring data centers online fast enough to keep up with demand for artificial intelligence services.