Microsoft Stock Price

Microsoft Corporation (Nasdaq: MSFT) is a software company that develops, manufacturers, and licenses a range of software products for personal and business computing. The company is headquartered in Redmond, Washington, and employs roughly 60,000 people. Sales for the past 12 months were $37.8 billion, with $8.1 billion in income.

In theory, the stock's multiple (P/E ratio) indicates how much an investor is willing to pay per dollar of earnings. Microsoft's close on Friday, November 26, 2004 is presented in Exhibit 1. Its P/E ratio of 35.90 indicates that Microsoft investors are willing to pay $35.90 for every dollar Microsoft earns. The current P/E ratio for the technology sector is 30.45, and specifically for the software and programming industry subset (of which Microsoft is included) is 35.67.

Unlike EPS, which is a historical looks at earnings per share, P/E ratios reflect investors expected

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Category: Economics - M