Is Microsoft Corporation (MSFT) Undervalued?
Based on the current stock price of $487.71 and a P/E ratio of 34.71,Microsoft Corporation has a PEG ratio of 1.81.
The Short Answer:
Most analysts consider a PEG ratio below 1.0 to be undervalued. With a ratio of 1.81, MSFT appears to be fairly valued relative to its growth rate of 19.18%.
Based on a PEG ratio of 1.74 (adjusted for dividends).
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How we analyzed MSFT
We calculated the PEG (Price/Earnings-to-Growth) ratio by taking the Price-to-Earnings Ratio of 34.71and dividing it by the annual growth rate of 19.18%.
PEG = 34.71 (P/E) ÷ 19.18 (Growth) = 1.81
Frequently Asked Questions about MSFT
What is the current PEG Ratio for Microsoft Corporation (MSFT)?+
The current PEG Ratio for Microsoft Corporation is 1.81. A PEG ratio below 1.0 generally suggests the stock may be undervalued relative to its growth.
Is MSFT stock undervalued right now?+
Based on the PEG ratio of 1.81, Microsoft Corporation appears to be fairly valued. Investors typically look for a PEG ratio below 1.0 to find undervalued growth stocks.
What is the PEGY Ratio for MSFT?+
The PEGY ratio for Microsoft Corporation is 1.74. This metric accounts for dividend yield (0.75%), providing a more complete valuation picture.