Glossary
P/E ratio
Share price divided by earnings per share.
The price-to-earnings (P/E) ratio is a company’s share price divided by its earnings per share. A P/E of 25 means the market price is 25 times one year of earnings per share.
P/E = share price ÷ earnings per share
The earnings half comes from filings. For Microsoft the trailing figure is its fiscal 2026 diluted EPS of $17.95. The price half changes every trading day, which is why Ticker Sage doesn’t publish P/E ratios. The P/E calculator does the division with a price you enter.
A P/E built on last year’s earnings is called trailing. One built on analysts’ estimates for next year is called forward, and it depends on forecasts, not filings.
Longer explainer: What a P/E ratio is
Related terms: Earnings per share (EPS), Market cap
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Disclosures
- Editor holdings
- The editor holds no position in any company named on this page. As of Nov 11, 2026.
- Compensation
- Nobody paid for this page. No affiliate links on this page.
- Sources
- The SEC filings linked next to each figure.
- Last updated
- Nov 11, 2026
General education, the same for every reader. Not a recommendation to buy, sell or hold any security, and it doesn’t consider your situation.