buy-sell

PE Buy/ Sell Zone Analysis for US Stocks

Is Microsoft Corporation in the Buy Zone or Sell Zone? See how many days this stock has traded above or below historically at its current P/E (Price to Earnings) or P/BV (Price to Book Value). This is a reverse percentile score. Values close to 100% are bad while values close to 0% are good.

Note: Current PE of a stock may be impacted downward by adverse events. Investors should check for red flags before buying.

generated report

Restated P/E Analysis

from 13 Apr, 2023

to 12 Apr, 2025

Strong Buy Zone

3.4%     into P/E buy sell zone

Strong upside potential
% time spent below current P/E
Gains already realized

Out of 503 days, Microsoft Corporation traded 17 (3.4%) days below the current P/E of on Restated basis.

Originally Reported P/E Analysis

from 13 Apr, 2023

to 12 Apr, 2025

Strong Buy Zone

4.6%     into P/E buy sell zone

Strong upside potential
% time spent below current P/E
Gains already realized

Out of 503 days, Microsoft Corporation traded 23 (4.6%) days below the current P/E of on Originally Reported basis.

Note: This is a reverse percentile score. Values close to 100% are bad while values close to 0% are good. Days when PE is negative are not considered in the analysis
↑
4.6 %

% Days traded below current P/E

Strong Buy Zone

31.1

Current P/E

 
35.1

Average P/E

 
35.4

Median P/E

 
40.3

Highest P/E

 
28.4

Lowest P/E

 
P/E range Days traded in range % Days traded in range Days traded within & below range % Days traded within & below range
28-32
Current P/E is 31.1 		48 9.5% 48 9.5%
32-33
 37 7.4% 85 16.9%
33-34
 61 12.1% 146 29.0%
34-35
 66 13.1% 212 42.1%
35-36
 110 21.9% 322 64.0%
36-37
 106 21.1% 428 85.1%
37-38
 38 7.6% 466 92.6%
38-41
 37 7.4% 503 100.0%
Total 503 503
↑
3.4 %

% Days traded below current P/E

Strong Buy Zone

31.1

Current P/E

 
35.2

Average P/E

 
35.4

Median P/E

 
40.3

Highest P/E

 
28.4

Lowest P/E

 
P/E range Days traded in range % Days traded in range Days traded within & below range % Days traded within & below range
28-32
Current P/E is 31.1 		45 8.9% 45 8.9%
32-33
 35 7.0% 80 15.9%
33-34
 63 12.5% 143 28.4%
34-35
 69 13.7% 212 42.1%
35-36
 99 19.7% 311 61.8%
36-37
 100 19.9% 411 81.7%
37-38
 47 9.3% 458 91.1%
38-41
 45 8.9% 503 100.0%
Total 503 503

FAQ

  • What is the PE ratio?
    The Price to Earnings ratio (P/E ratio) for a stock indicates how expensive or cheap a company’s share price is relative to its earnings.
    In its simplest form, the price to earnings ratio shows the amount an investor needs to pay to receive $1 of the company’s earnings.
    So if a company is trading at a P/E of 25, it means that investors are willing to pay $25 for every $1 of current earnings. This suggests that investors are valuing the stock at 25 times its current earnings, and they expect future growth in earnings.
    The Price to Earnings ratio fluctuates depending on the sentiment of investors and analysts. A highly positive outlook on a company pushes the stock price up, raising the P/E ratio (investors are willing to pay more for the same amount of earnings), while a negative sentiment brings the P/E down (investors are willing to pay less for the same earnings).
  • What is the PE buy/sell zone?
    The PE buy/sell zone is calculated based on how many days a stock has traded at its current PE level.
    To do this, we compare the current PE to the stock’s historical PE performance, to find out how often (for how many days in the past) the stock has traded at its current PE value.
    If the stock has usually traded above its current PE level (it’s at a higher PE for the majority of trading days), then the stock is cheaper than usual and in the PE buy zone.
    If the stock has usually traded below its current PE level (it’s at a lower PE for the majority of trading days), then the stock is more expensive than usual and in the PE sell zone.
  • How is the PE buy sell zone useful?
    The PE buy sell zone tells you if a stock’s current PE level is unusually high or low, and if a stock doesn’t typically trade at that level. It helps investors identify stocks that are undervalued or overvalued in terms of their typical PE trading behavior.
    Investors should keep in mind that the buy zone/sell zone is not a foolproof buy or sell signal. For example, the PE of a stock may have fallen substantially due to adverse events or negative news. Or the PE may have risen sharply after the company has won new orders, made an acquisition, announced a buyback, or some other positive event. PE Buy/Sell Zone signals should be looked at in conjunction with other information.
  • Why are the number of days different for Restated and Originally Reported data?
    This can be because of any of the 2 following reasons:
    1. Days when PE is negative are not considered in the analysis. So if only 1 of the Restated or Originally Reported PE is negative and the other is not, then the days will be different
    2. Companies have reported Originally Reported data for limited period.
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