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Microsoft is a Washington-based multinational technology company producing computer software, consumer electronics, PCs and other related services. Founded by Bill Gates and Paul Allen as Traf-O-Data in 1975, Microsoft is best known for its Windows operating software as well as numerous other corporate acquisitions, including LinkedIn and Skype. As of 2021, Microsoft is the world's third-largest listed company after Apple Inc and Saudi Aramco.
How to buy shares in Microsoft
- Compare share trading platforms. To buy shares in a company listed in the US from Australia you'll need to find a trading platform that offers access to US stock markets. Look for a platform with low brokerage and foreign exchange fees.
- Open and fund your brokerage account. Complete an application with your personal and financial details, which will typically include your ID and tax file number. Fund your account with a bank transfer, credit card or debit card.
- Search for Microsoft. Find the share by name or ticker symbol: MSFT. Research its history to confirm it's a solid investment that matches your financial goals.
- Purchase now or later. Buy today with a market order or use a limit order to delay your purchase until Microsoft reaches your desired price. To spread out your risk, look into dollar-cost averaging, which smooths out buying using consistent intervals and amounts.
- Decide on how many to buy. At last close price of US$437.03, weigh your budget against a diversified portfolio that can minimise risk through the market's ups and downs. You may be able to buy a fractional share of Microsoft, depending on your broker.
- Check in on your investment. Congratulations, you own a part of Microsoft. Optimise your portfolio by tracking how your stock — and even the business — performs with an eye on the long term. You may be eligible for dividends and shareholder voting rights.
Have Microsoft's shares ever split?
Microsoft's shares were split on a 2:1 basis on 17 February 2003. So if you had owned 1 share the day before the split, the next day you would own 2 shares. This wouldn't directly have changed the overall worth of your Microsoft shares – just the quantity. However, indirectly, the new 50% lower share price could have impacted the market appetite for Microsoft shares which in turn could have impacted Microsoft's share price.
Microsoft shares at a glance
Information last updated 2024-12-18.
| 52-week range | US$363.7797 - US$466.5734 |
|---|---|
| 50-day moving average | US$425.6024 |
| 200-day moving average | US$424.1469 |
| Target price | US$507.5038 |
| PE ratio | 36.0883 |
| Dividend yield | US$3.08 (0.76%) |
| Earnings per share (TTM) | US$12.12 |
Use the fields above to explore the returns from a historical investment. Please refer to the charts further up this page to see performance over 5 years, or other periods. Past performance doesn't indicate future results. Capital is at risk.
Microsoft price performance over time
Historical closes compared with the last close of $437.03
| 1 week (2024-12-13) | -2.29% |
|---|---|
| 1 month (2024-11-20) | 5.18% |
| 3 months (2024-09-20) | 0.40% |
| 6 months (2024-06-20) | -1.95% |
| 1 year (2023-12-20) | 17.92% |
|---|---|
| 2 years (2022-12-20) | 80.74% |
| 3 years (2021-12-20) | 36.61% |
| 5 years (2019-12-20) | 177.64% |
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The value of your investments can fall as well as rise and you may get back less than you invested. Past performance is no indication of future results.
Is it a good time to buy Microsoft stock?
The technical analysis gauge below displays real-time ratings for the timeframes you select. However, this is not a recommendation. It represents a technical analysis based on the most popular technical indicators: Moving Averages, Oscillators and Pivots. Finder might not concur and takes no responsibility.
Is Microsoft under- or over-valued?
Valuing Microsoft stock is incredibly difficult, and any metric has to be viewed as part of a bigger picture of Microsoft's overall performance. However, analysts commonly use some key metrics to help gauge the value of a stock.
Microsoft's P/E ratio
Microsoft's current share price divided by its per-share earnings (EPS) over a 12-month period gives a "trailing price/earnings ratio" of roughly 36x. In other words, Microsoft shares trade at around 36x recent earnings.
That's relatively high compared to, say, the trailing 12-month P/E ratio for the NASDAQ 100 at the end of 2019 (27.29). The high P/E ratio could mean that investors are optimistic about the outlook for the shares or simply that they're over-valued.
Microsoft's PEG ratio
Microsoft's "price/earnings-to-growth ratio" can be calculated by dividing its P/E ratio by its growth – to give 2.4073. A low ratio can be interpreted as meaning the shares offer better value, while a higher ratio can be interpreted as meaning the shares offer worse value.
The PEG ratio provides a broader view than just the P/E ratio, as it gives more insight into Microsoft's future profitability. By accounting for growth, it could also help you if you're comparing the share prices of multiple high-growth companies.
Microsoft's EBITDA
Microsoft's EBITDA (earnings before interest, taxes, depreciation and amortisation) is US$136.6 billion (£107.8 billion).
The EBITDA is a measure of a Microsoft's overall financial performance and is widely used to measure stock profitability.
Microsoft share price volatility
Over the last 12 months, Microsoft's shares have ranged in value from as little as US$363.7797 up to US$466.5734. A popular way to gauge a stock's volatility is its "beta".
Beta measures a share's volatility in relation to the market. The market (NASDAQ average) beta is 1, while Microsoft's is 0.904. This would suggest that Microsoft's shares are less volatile than average (for this exchange).
Microsoft financials
| Revenue TTM | US$254.2 billion |
|---|---|
| Operating margin TTM | 46.58% |
| Gross profit TTM | US$165.4 billion |
| Return on assets TTM | 14.59% |
| Return on equity TTM | 35.6% |
| Profit margin | 35.61% |
| Book value | 38.693 |
| Market capitalisation | US$3.3 trillion |
| EBITDA | US$136.6 billion |
TTM: trailing 12 months
Microsoft share dividends
Dividend payout ratio: 25.41% of net profits
Recently Microsoft has paid out, on average, around 25.41% of net profits as dividends. That has enabled analysts to estimate a "forward annual dividend yield" of 0.76% of the current stock value. This means that over a year, based on recent payouts (which are sadly no guarantee of future payouts), Microsoft shareholders could enjoy a 0.76% return on their shares, in the form of dividend payments. In Microsoft's case, that would currently equate to about $3.08 per share.
While Microsoft's payout ratio might seem fairly standard, it's worth remembering that Microsoft may be investing much of the rest of its net profits in future growth.
Microsoft's most recent dividend payout was on 12 March 2025. The latest dividend was paid out to all shareholders who bought their shares by 19 February 2025 (the "ex-dividend date").
Microsoft's environmental, social and governance track record
Environmental, social and governance (known as ESG) criteria are a set of three factors used to measure the sustainability and social impact of companies like Microsoft.
When it comes to ESG scores, lower is better, and lower scores are generally associated with lower risk for would-be investors.
Microsoft's total ESG risk score
Total ESG risk: 18.94
Socially conscious investors use ESG scores to screen how an investment aligns with their worldview, and Microsoft's overall score of 18.94 (as at 12/31/2018) is excellent – landing it in it in the 11st percentile of companies rated in the same sector.
ESG scores are increasingly used to estimate the level of risk a company like Microsoft is exposed to within the areas of "environmental" (carbon footprint, resource use etc.), "social" (health and safety, human rights etc.), and "governance" (anti-corruption, tax transparency etc.).
Microsoft's environmental score
Environmental score: 2.97/100
Microsoft's environmental score of 2.97 puts it squarely in the 6th percentile of companies rated in the same sector. This could suggest that Microsoft is a leader in its sector terms of its environmental impact, and exposed to a lower level of risk.
Microsoft's social score
Social score: 11.87/100
Microsoft's social score of 11.87 puts it squarely in the 6th percentile of companies rated in the same sector. This could suggest that Microsoft is a leader in its sector when it comes to taking good care of its workforce and the communities it impacts.
Microsoft's governance score
Governance score: 6.59/100
Microsoft's governance score puts it squarely in the 6th percentile of companies rated in the same sector. That could suggest that Microsoft is a leader in its sector when it comes to responsible management and strategy, and exposed to a lower level of risk.
Microsoft's controversy score
Controversy score: 3/5
ESG scores also evaluate any incidences of controversy that a company has been involved in. Microsoft scored a 3 out of 5 for controversy – a middle-of-the-table result reflecting that Microsoft hasn't always managed to keep its nose clean.
Environmental, social, and governance (ESG) summary
Microsoft Corporation was last rated for ESG on: 2019-01-01.
| Total ESG score | 18.94 |
|---|---|
| Total ESG percentile | 11.18 |
| Environmental score | 2.97 |
| Environmental score percentile | 6 |
| Social score | 11.87 |
| Social score percentile | 6 |
| Governance score | 6.59 |
| Governance score percentile | 6 |
| Level of controversy | 3 |
Microsoft overview
Microsoft Corporation develops and supports software, services, devices and solutions worldwide. The Productivity and Business Processes segment offers office, exchange, SharePoint, Microsoft Teams, office 365 Security and Compliance, Microsoft viva, and Microsoft 365 copilot; and office consumer services, such as Microsoft 365 consumer subscriptions, Office licensed on-premises, and other office services. This segment also provides LinkedIn; and dynamics business solutions, including Dynamics 365, a set of intelligent, cloud-based applications across ERP, CRM, power apps, and power automate; and on-premises ERP and CRM applications. The Intelligent Cloud segment offers server products and cloud services, such as azure and other cloud services; SQL and windows server, visual studio, system center, and related client access licenses, as well as nuance and GitHub; and enterprise services including enterprise support services, industry solutions, and nuance professional services. The More Personal Computing segment offers Windows, including windows OEM licensing and other non-volume licensing of the Windows operating system; Windows commercial comprising volume licensing of the Windows operating system, windows cloud services, and other Windows commercial offerings; patent licensing; and windows Internet of Things; and devices, such as surface, HoloLens, and PC accessories. Additionally, this segment provides gaming, which includes Xbox hardware and content, and first- and third-party content; Xbox game pass and other subscriptions, cloud gaming, advertising, third-party disc royalties, and other cloud services; and search and news advertising, which includes Bing, Microsoft News and Edge, and third-party affiliates. The company sells its products through OEMs, distributors, and resellers; and directly through digital marketplaces, online, and retail stores. The company was founded in 1975 and is headquartered in Redmond, Washington.
Past developments
November 21: Microsoft's shares soared to a new record, closing at $377.44 on 21 November, 2023 after a more than 2% increase. This surge follows the company's strategic moves in AI, including a deeper partnership with OpenAI.
November 21: On 20 November, Microsoft, a key investor in OpenAI hired the ousted CEO Sam Altman and co-founder Greg Brockman to work on AI initiatives.
November 21: OpenAI, a leading AI research firm in partnership with Microsoft, witnessed a dramatic leadership change with the abrupt firing of CEO Sam Altman.
October 25: Microsoft released its latest quarterly earnings report and beat analyst estimates for revenue and earnings per share (EPS). Revenue came in at $56.5 billion (compared to an expected $54.5 billion) and EPS reached $2.99 (compared to an expected $2.66).
05 January 2023: Microsoft's Bing search engine plans to integrate with OpenAI's ChatGPT chatbot technology. The new feature is expected to launch by the end of March and is intended to give Microsoft a competitive edge over Google. Microsoft made a $1 billion (£830 million) investment in OpenAI in 2019 and have integrated OpenAI's tech ever since.
10 January 2023: Microsoft is in talks to invest $10 (£8.1 Billion), in ChatGPT owner - Semafor. The investment comes at the same time as Microsoft Bing starts to use OpenAI’s chatbot for its search engine. The move could see Bing rank higher than Google search in customer search usage.
November 21: On 20 November, Microsoft, a key investor in OpenAI hired the ousted CEO Sam Altman and co-founder Greg Brockman to work on AI initiatives.
November 21: OpenAI, a leading AI research firm in partnership with Microsoft, witnessed a dramatic leadership change with the abrupt firing of CEO Sam Altman.
October 25: Microsoft released its latest quarterly earnings report and beat analyst estimates for revenue and earnings per share (EPS). Revenue came in at $56.5 billion (compared to an expected $54.5 billion) and EPS reached $2.99 (compared to an expected $2.66).
05 January 2023: Microsoft's Bing search engine plans to integrate with OpenAI's ChatGPT chatbot technology. The new feature is expected to launch by the end of March and is intended to give Microsoft a competitive edge over Google. Microsoft made a $1 billion (£830 million) investment in OpenAI in 2019 and have integrated OpenAI's tech ever since.
10 January 2023: Microsoft is in talks to invest $10 (£8.1 Billion), in ChatGPT owner - Semafor. The investment comes at the same time as Microsoft Bing starts to use OpenAI’s chatbot for its search engine. The move could see Bing rank higher than Google search in customer search usage.
Microsoft in the news
OpenAI Expands in Europe With Zurich Office
Microsoft Stock Adds To November Advance; Why It's A Buy Again
Musk’s Rivals Fear He Will Target Them With His New Power
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