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.
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. 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.
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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 2025-11-30.
| 52-week range | US$342.9515 - US$553.5024 |
|---|---|
| 50-day moving average | US$510.593 |
| 200-day moving average | US$467.9977 |
| Target price | US$625.4096 |
| PE ratio | 34.9687 |
| Dividend yield | US$3.4 (0.7%) |
| Earnings per share (TTM) | US$14.07 |
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.
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 it worth buying Microsoft stock?
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 35x. In other words, Microsoft shares trade at around 35x 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 2.0889. 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$166.4 billion (£125.4 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$342.9515 up to US$553.5024. 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 1.065. This would suggest that Microsoft's shares are a little bit more volatile than the average for this exchange and represent, relatively speaking, a slightly higher risk (but potentially also market-beating returns).
Microsoft financials
| Revenue TTM | US$293.8 billion |
|---|---|
| Operating margin TTM | 48.87% |
| Gross profit TTM | US$202 billion |
| Return on assets TTM | 14.66% |
| Return on equity TTM | 32.24% |
| Profit margin | 35.71% |
| Book value | 48.84 |
| Market capitalisation | US$3.7 trillion |
| EBITDA | US$166.4 billion |
TTM: trailing 12 months
Microsoft share dividends
Dividend payout ratio: 24.18% of net profits
Recently Microsoft has paid out, on average, around 24.18% of net profits as dividends. That has enabled analysts to estimate a "forward annual dividend yield" of 0.74% 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 0.74% return on their shares, in the form of dividend payments. In Microsoft's case, that would currently equate to about $3.4 per share.
While Microsoft's payout ratio might seem low, this can signify that Microsoft is investing more in its future growth.
Microsoft's most recent dividend payout was on 10 December 2025. The latest dividend was paid out to all shareholders who bought their shares by 19 November 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 company's Productivity and Business Processes segment offers Microsoft 365 Commercial, Enterprise Mobility + Security, Windows Commercial, Power BI, Exchange, SharePoint, Microsoft Teams, Security and Compliance, and Copilot; Microsoft 365 Commercial products, such as Windows Commercial on-premises and Office licensed services; Microsoft 365 Consumer products and cloud services, such as Microsoft 365 Consumer subscriptions, Office licensed on-premises, and other consumer services; LinkedIn; Dynamics products and cloud services, such as Dynamics 365, cloud-based applications, and on-premises ERP and CRM applications. Its Intelligent Cloud segment provides Server products and cloud services, such as Azure and other cloud services, GitHub, Nuance Healthcare, virtual desktop offerings, and other cloud services; Server products, including SQL and Windows Server, Visual Studio and System Center related Client Access Licenses, and other on-premises offerings; Enterprise and partner services, including Enterprise Support and Nuance professional Services, Industry Solutions, Microsoft Partner Network, and Learning Experience. The company's Personal Computing segment provides Windows and Devices, such as Windows OEM licensing and Devices and Surface and PC accessories; Gaming services and solutions, such as Xbox hardware, content, and services, first- and third-party content Xbox Game Pass, subscriptions, and Cloud Gaming, advertising, and other cloud services; search and news advertising services, such as Bing and Copilot, Microsoft News and Edge, and third-party affiliates. It sells its products through OEMs, distributors, and resellers; and 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.
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