Microsoft Trades at 21.88x Earnings, Lowest Multiple Since 2018 Despite Azure Growth
Microsoft Corporation (MSFT) trades at 21.88 times trailing twelve-month earnings, its lowest valuation since 2018, even as Azure revenue grew 40% and commercial remaining performance obligations reached $627 billion.
Microsoft Corporation () trades at 21.88 times trailing twelve-month earnings, its lowest price-to-earnings multiple since 2018, according to analysis published June 23 [1]. The compression comes despite Azure and other cloud services revenue growing 40% year-over-year and commercial remaining performance obligations increasing to $627 billion, with roughly 25% set to convert to revenue in the next twelve months [2].
The backlog figure directly supports Microsoft's $190 billion capital expenditure program and provides multi-year revenue visibility [1]. A significant portion of the signed commitments is tied to OpenAI, the artificial intelligence research company in which Microsoft holds a substantial stake [1].
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