Is MSFT (MSFT) Undervalued?
Based on the current stock price of $414.44 and a P/E ratio of 24.68,MSFT has a PEG ratio of 2.47.
The Short Answer:
Most analysts consider a PEG ratio below 1.0 to be undervalued. With a ratio of 2.47, MSFT appears to be potentially overvalued relative to its growth rate of 10.00%.
Based on a PEG ratio of 2.27 (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 24.68and dividing it by the annual growth rate of 10.00%.
PEG = 24.68 (P/E) ÷ 10.00 (Growth) = 2.47
Frequently Asked Questions about MSFT
What is the current PEG Ratio for MSFT (MSFT)?+
The current PEG Ratio for MSFT is 2.47. 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 2.47, MSFT appears to be potentially overvalued. 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 MSFT is 2.27. This metric accounts for dividend yield (0.88%), providing a more complete valuation picture.