Microsoft stock ripped higher today, jumping about 15% to roughly US$451 after a single quarter forced investors to rethink what they are willing to pay for the company. The move caps a strong run over the past month, and the real story sits in the earnings power that drove this repricing.

Full year revenue reached about US$332b with operating income north of US$155b, and trailing earnings now put Microsoft on a P/E of roughly 25x. The market reaction is loud. The question for you is how long that earnings engine can justify or reshape this valuation.

Impressed by Microsoft’s earnings strength but wondering if you are paying too much for that growth engine at a roughly 25x P/E? Take a look at our hand picked list of 56 high quality…