Microsoft is currently trading near 20x its 2027 GAAP P/E ratio and is close to its lowest relative ratio against the S&P 500 in over 5 years.

Interestingly, even after the launch of ChatGPT and its leadership in AI via Azure/OpenAI, the stock lost relative strength against the index… returning to the same level.

At various points in the past, similar levels have ended up marking good relative entry points.