Microsoft Corporation (MSFT) Key Metrics

NASDAQ: MSFTValuation, returns, debt and efficiency ratios over 10 years.

MSFT valuation today

Trailing 12 months · as of October 18, 2026
Market cap
$3.93T
Enterprise value
$3.70T
P/E (TTM)
29.5
10-yr median 34.4
Forward P/E
25.1
PEG ratio
1.62
Price / sales
11.8
10-yr median 10.3
Price / book
8.4
10-yr median 11.2
EV / EBITDA
17.7
10-yr median 20.4
Dividend yield
0.74%
$3.92 a year
Beta
1.10

MSFT key metrics, FY2017–FY2026

Fiscal year ended June 30, 2026 · U.S. dollars

MSFT valuation Price multiples at each fiscal year-end price.

P/E ratio−43.0%
20.8
FY2026 · hover or tap a bar for each year
FY2017: 21.2 (+6.1%)FY2018: 46.4 (+119.0%)FY2019: 26.5 (−42.9%)FY2020: 35.3 (+33.4%)FY2021: 33.6 (−4.7%)FY2022: 26.6 (−20.9%)FY2023: 35.2 (+32.1%)FY2024: 37.9 (+7.7%)FY2025: 36.5 (−3.7%)FY2026: 20.8 (−43.0%)
FY2017FY2026
Price / sales−36.4%
8.4
FY2026 · hover or tap a bar for each year
FY2017: 5.6 (+24.3%)FY2018: 7.0 (+24.6%)FY2019: 8.3 (+18.5%)FY2020: 10.9 (+32.5%)FY2021: 12.3 (+12.2%)FY2022: 9.8 (−20.3%)FY2023: 12.0 (+22.9%)FY2024: 13.6 (+13.4%)FY2025: 13.2 (−3.2%)FY2026: 8.4 (−36.4%)
FY2017FY2026
Price / book−41.9%
6.3
FY2026 · hover or tap a bar for each year
FY2017: 7.5 (+30.9%)FY2018: 9.3 (+24.6%)FY2019: 10.1 (+9.2%)FY2020: 13.2 (+30.2%)FY2021: 14.5 (+9.8%)FY2022: 11.6 (−19.9%)FY2023: 12.3 (+6.1%)FY2024: 12.4 (+0.8%)FY2025: 10.8 (−13.1%)FY2026: 6.3 (−41.9%)
FY2017FY2026
EV / EBITDA−40.6%
13.6
FY2026 · hover or tap a bar for each year
FY2017: 12.1 (+15.2%)FY2018: 14.5 (+20.2%)FY2019: 16.9 (+16.9%)FY2020: 21.9 (+29.3%)FY2021: 23.5 (+7.2%)FY2022: 18.9 (−19.5%)FY2023: 23.7 (+25.6%)FY2024: 25.0 (+5.6%)FY2025: 23.0 (−8.2%)FY2026: 13.6 (−40.6%)
FY2017FY2026
Price / free cash flow−20.0%
41.5
FY2026 · hover or tap a bar for each year
FY2017: 17.2 (+4.8%)FY2018: 23.8 (+38.5%)FY2019: 27.1 (+13.9%)FY2020: 34.6 (+27.3%)FY2021: 36.7 (+6.2%)FY2022: 29.7 (−19.1%)FY2023: 42.8 (+43.9%)FY2024: 45.1 (+5.3%)FY2025: 51.9 (+15.1%)FY2026: 41.5 (−20.0%)
FY2017FY2026
Free cash flow yield+0.5 pts
2.4%
FY2026 · hover or tap a bar for each year
FY2017: 5.8% (−0.3 pts)FY2018: 4.2% (−1.6 pts)FY2019: 3.7% (−0.5 pts)FY2020: 2.9% (−0.8 pts)FY2021: 2.7% (−0.2 pts)FY2022: 3.4% (+0.6 pts)FY2023: 2.3% (−1.0 pts)FY2024: 2.2% (−0.1 pts)FY2025: 1.9% (−0.3 pts)FY2026: 2.4% (+0.5 pts)
FY2017FY2026

MSFT valuation history

Fiscal year-endToday10-year median

MSFT returns on capital

ROEROICROA

Net income (ROE, ROA) or after-tax operating income (ROIC) divided by the average of the opening and closing balance.

MSFT debt vs cash

Total debtCash & short-term investments

Debt includes short- and long-term borrowings and, where reported, lease liabilities.

MSFT cash returned to shareholders

DividendsBuybacksFree cash flow

MSFT price vs earnings per share

Share price at year-endEPS (right axis)

MSFT key metrics

FY2017–FY2026
Microsoft Corporation key metrics by fiscal year
FY2026FY2025FY2024FY2023FY2022FY2021FY2020FY2019FY2018FY2017
Valuation
Market capitalization$2.78T$3.71T$3.34T$2.54T$1.94T$2.06T$1.56T$1.04T$768.57B$539.86B
Enterprise value$2.83T$3.68T$3.33T$2.49T$1.89T$2.00T$1.50T$983.14B$716.61B$493.07B
P/E ratio20.836.537.935.226.633.635.326.546.421.2
Price / sales8.413.213.612.09.812.310.98.37.05.6
Price / book6.310.812.412.311.614.513.210.19.37.5
Price / free cash flow41.551.945.142.829.736.734.627.123.817.2
Price / operating cash flow15.227.328.229.121.726.925.819.917.513.7
EV / sales8.513.113.611.89.511.910.57.86.55.1
EV / EBITDA13.623.025.023.718.923.521.916.914.512.1
EV / free cash flow42.351.445.041.929.135.633.125.722.215.7
Earnings yield4.8%2.7%2.6%2.8%3.8%3.0%2.8%3.8%2.2%4.7%
Free cash flow yield2.4%1.9%2.2%2.3%3.4%2.7%2.9%3.7%4.2%5.8%
Dividend yield1.0%0.6%0.7%0.8%0.9%0.8%1.0%1.3%1.7%2.2%
Shareholder yield (dividends + buybacks)1.8%1.1%1.2%1.7%2.6%2.1%2.4%3.2%3.0%4.4%
Share price at fiscal year-end$373.02$497.41$446.95$340.54$256.83$270.90$203.51$133.96$98.61$68.93
Per share
Revenue per share$44.52$37.74$32.82$28.36$26.30$22.09$18.61$16.23$14.16$12.33
Earnings per share$17.95$13.64$11.80$9.68$9.65$8.05$5.76$5.06$2.13$3.25
Operating cash flow per share$24.55$18.24$15.87$11.72$11.81$10.09$7.90$6.73$5.63$5.04
Free cash flow per share$8.99$9.59$9.92$7.96$8.64$7.38$5.89$4.93$4.14$4.01
Cash per share$10.31$12.67$10.11$14.89$13.89$17.13$17.77$17.26$17.16$16.98
Book value per share$59.36$46.01$35.95$27.60$22.09$18.66$15.40$13.20$10.61$9.24
Tangible book value per share$40.81$26.97$16.29$17.26$11.63$11.10$8.84$6.78$5.00$3.47
Dividends per share$3.55$3.23$2.91$2.65$2.41$2.17$1.97$1.78$1.63$1.51
Capex per share$15.56$8.65$5.95$3.76$3.17$2.71$2.01$1.80$1.49$1.04
Debt per share$17.28$8.12$8.99$8.03$8.13$8.91$9.24$10.11$10.50$11.01
Shares outstanding7.45B7.46B7.47B7.47B7.54B7.61B7.68B7.75B7.79B7.83B
Change in shares outstanding−0.2%−0.1%−0.0%−0.9%−0.9%−1.0%−0.9%−0.5%−0.5%−2.3%
Returns & profitability
Return on equity (ROE)34.0%33.3%37.1%38.8%47.2%47.1%40.1%42.4%21.4%35.3%
Return on invested capital (ROIC)31.1%37.2%43.1%51.6%71.6%91.1%88.7%99.4%62.2%130.0%
Return on assets (ROA)19.4%18.0%19.1%18.6%20.8%19.3%15.1%14.4%6.6%11.7%
Return on tangible assets21.6%21.4%24.1%21.6%25.4%22.2%17.6%16.6%7.7%13.0%
Free cash flow margin20.2%25.4%30.2%28.1%32.9%33.4%31.6%30.4%29.2%32.5%
Income quality (OCF / net income)1.371.341.351.211.221.251.371.332.651.55
Financial health
Total debt$128.81B$60.59B$67.13B$59.97B$61.27B$67.78B$71.00B$78.37B$81.81B$86.19B
Cash & short-term investments$76.84B$94.56B$75.53B$111.26B$104.76B$130.33B$136.53B$133.82B$133.77B$132.98B
Net debt$51.97B−$33.97B−$8.40B−$51.30B−$43.49B−$62.56B−$65.53B−$55.45B−$51.96B−$46.79B
Debt / equity0.290.180.250.290.370.480.600.770.991.19
Debt / assets0.170.100.130.150.170.200.240.270.320.36
Net debt / EBITDA0.25−0.21−0.06−0.49−0.43−0.73−0.96−0.96−1.05−1.14
Current ratio1.231.351.271.771.782.082.522.532.902.48
Quick ratio1.221.351.271.751.752.052.492.502.862.44
Interest coverage50.953.937.345.040.429.820.416.012.813.1
Working capital$38.88B$49.91B$34.45B$80.11B$74.60B$95.75B$109.61B$106.13B$111.17B$95.32B
Invested capital$494.35B$309.51B$260.07B$154.93B$123.06B$79.43B$52.77B$46.88B$30.76B$25.61B
Tangible asset value$304.13B$201.37B$121.66B$128.97B$87.72B$84.48B$67.92B$52.55B$38.98B$27.17B
Net current asset value−$108.28B−$84.39B−$83.95B−$21.50B−$28.61B−$7.38B−$1.09B−$8.67B−$6.47B−$8.84B
Graham number$154.81$118.84$97.69$77.55$69.24$58.15$44.69$38.77$22.53$26.02
Graham net-net per share−$23.85−$17.16−$16.71−$7.59−$7.76−$4.15−$2.80−$3.51−$2.72−$2.53
Capital allocation
Dividends paid$26.45B$24.08B$21.77B$19.80B$18.14B$16.52B$15.14B$13.81B$12.70B$11.85B
Share buybacks (net)$22.27B$18.42B$17.25B$22.25B$32.70B$27.39B$22.97B$19.54B$10.72B$11.79B
Dividend payout ratio19.8%23.6%24.7%27.4%24.9%27.0%34.2%35.2%76.6%46.5%
Dividends + buybacks / free cash flow72.7%59.4%52.7%70.7%78.0%78.2%84.2%87.2%72.6%75.3%
Capex / revenue34.9%22.9%18.1%13.3%12.0%12.3%10.8%11.1%10.5%8.4%
Capex / operating cash flow63.4%47.4%37.5%32.1%26.8%26.9%25.4%26.7%26.5%20.6%
Capex / depreciation3.011.892.002.031.651.761.211.191.130.93
Stock-based compensation / revenue3.7%4.3%4.4%4.5%3.8%3.6%3.7%3.7%3.6%3.4%
R&D / revenue10.7%11.5%12.0%12.8%12.4%12.3%13.5%13.4%13.3%13.5%
SG&A / revenue10.4%11.7%13.1%14.3%14.0%15.0%17.3%18.4%20.1%20.7%
Efficiency
Days sales outstanding82.982.278.680.075.876.178.581.276.571.9
Days of inventory on hand4.04.59.217.318.615.815.720.123.023.6
Days payables outstanding120.3103.398.7102.899.596.886.876.676.276.1
Cash conversion cycle (days)-33.4-16.6-10.9-5.4-5.2-4.97.424.823.419.4
Receivables turnover4.404.444.644.564.824.804.654.494.775.07
Payables turnover3.033.533.703.553.673.774.214.774.794.80
Inventory turnover91.1180.4339.5721.1019.6523.0623.2818.1615.8415.46
Asset turnover0.480.500.530.550.570.530.490.460.440.44
Average receivables$75.39B$63.41B$52.81B$46.47B$41.15B$35.03B$30.77B$28.00B$23.14B$19.03B
Average payables$35.07B$24.86B$20.05B$18.55B$17.08B$13.85B$10.96B$9.00B$8.00B$7.14B
Average inventory$1.17B$1.09B$1.87B$3.12B$3.19B$2.27B$1.98B$2.36B$2.42B$2.22B
Intangibles / total assets18.2%23.0%28.7%18.8%21.6%17.2%16.7%17.4%16.9%18.8%

Computed from MSFT's annual financial statements (latest annual report filed July 29, 2026) and the closing share price on each fiscal year-end, adjusted for stock splits. Figures in U.S. dollars; data from EODHD. Averages use the opening and closing balance of each year.

MSFT valuation and financial ratios

At the end of fiscal 2026 (June 30, 2026), Microsoft traded at 20.8 times earnings, against a 10-year median of 34.4. Based on the latest twelve months, the trailing P/E is 29.5 and the forward P/E is 25.1. Microsoft earned a return on equity of 34.0% and a return on invested capital of 31.1% in fiscal 2026. It ended the year with $128.8 billion of debt and $76.8 billion in cash and short-term investments, net debt of $52.0 billion. It returned $48.7 billion to shareholders: $26.4 billion in dividends and $22.3 billion in share buybacks, 73% of free cash flow. The share count fell 4.8% from 7.83B to 7.45B over 9 years.

See the MSFT income statement, the MSFT chart for price history, or the MSFT stock overview for the latest quote and news.

MSFT key metrics FAQ

What is Microsoft's P/E ratio?

Microsoft's trailing P/E ratio is 29.5 based on the last twelve months of earnings (as of October 18, 2026), and its forward P/E is 25.1. At the end of fiscal 2026 it was 20.8, compared with a 10-year median of 34.4.

What is Microsoft's EV/EBITDA?

Microsoft's enterprise value was 13.6 times EBITDA at the end of fiscal 2026 (enterprise value $2.83 trillion, EBITDA $207.5 billion); the current EV/EBITDA is 17.7.

What is Microsoft's return on equity?

Microsoft's return on equity (ROE) was 34.0% in fiscal 2026: net income of $133.7 billion on average shareholders' equity of $392.9 billion.

What is Microsoft's ROIC?

Microsoft's return on invested capital was 31.1% in fiscal 2026, using after-tax operating income divided by average debt plus equity minus cash.

How much debt does Microsoft have?

Microsoft had total debt of $128.8 billion at the end of fiscal 2026, a debt-to-equity ratio of 0.29 and $52.0 billion of net debt (0.25 times EBITDA).

What is Microsoft's dividend yield?

Microsoft's forward dividend yield is 0.74%. Microsoft paid $26.4 billion in dividends in fiscal 2026 ($3.55 per share), a payout ratio of 19.8%.

Does Microsoft buy back its shares?

Yes. Microsoft spent $22.3 billion on net share repurchases in fiscal 2026 Shares outstanding changed −0.2% over the year, to 7.45B..

What is Microsoft's free cash flow yield?

Microsoft generated $67.0 billion of free cash flow in fiscal 2026, a free cash flow yield of 2.4% on its market value at year-end ($2.78 trillion).

What is Microsoft's current ratio?

Microsoft's current ratio was 1.23 at the end of fiscal 2026: current assets were 1.23 times current liabilities.

Software - Infrastructure key metrics