Valuation dashboard for Microchip Technology Incorporated (MCHP) with P/E 96.43, P/B 5.85, EV/EBITDA 25.79 and dividend yield 2.62%. DCF, Graham Number and Earnings Power Value models plus sector comparison against other Technology companies.
Microchip Technology Incorporated creates, produces, and sells intelligent, interconnected, and secure embedded control solutions to customers throughout the Americas, Europe, and Asia. The company's core offerings include a range of microcontrollers, such as general-purpose 8-bit, 16-bit, and 32-bit models, as well as 32-bit embedded microprocessors.
Analysis Summary
Microchip Technology Incorporated reported revenue of $4.71B in the most recent fiscal year, growing at a 5-year CAGR of -2.8%. Net income reached $202.2M, with a -10.4% 5-year CAGR.
Trailing-twelve-month margins: gross margin 60.2%, operating margin 15.5%, net margin 8.8%.
At the current price of $73.27, MCHP trades at a P/E of 96.43 and an ROE of 6.90%. Market capitalisation stands at $39.8B, placing it among large-cap names.
Balance sheet quality for MCHP: current ratio of 2.1. A debt-to-equity below 1.0 typically signals conservative capital structure, while a current ratio above 1.5 indicates comfortable short-term liquidity.
Valuation Ratios
| P/E Ratio | 96.43 |
| Price / Book | 5.85 |
| EV / EBITDA | 25.79 |
| Dividend Yield | 2.62% |
Valuation Models
| DCF Fair Value | $10.81 |
| vs Current Price | -85.2% |
Peer Comparison
| Symbol | Company | Market Cap | P/E | P/B | ROE |
|---|---|---|---|---|---|
| MCHP | Microchip Technology Incorporated | $38.9B | 96.43 | 5.85 | 6.9% |
| ERIC | Telefonaktiebolaget LM Ericsson (publ) | $33.0B | 13.58 | 3.20 | 23.6% |
| CTSH | Cognizant Technology Solutions Corporation | $29.0B | 13.19 | 1.98 | 14.9% |
| GFS | GLOBALFOUNDRIES Inc. | $25.2B | 35.29 | 2.11 | 6.1% |
| ALAB | Astera Labs, Inc. Common Stock | $46.4B | 124.05 | 26.76 | 25.2% |
| KEYS | Keysight Technologies, Inc. | $53.6B | 46.20 | 8.83 | 20.1% |
| ASX | ASE Technology Holding Co., Ltd. | $87.9B | 42.43 | 6.66 | 17.3% |
| HPE | Hewlett Packard Enterprise Company | $80.9B | 30.84 | 3.12 | 10.9% |
Price
| Price | $73.27 |
| Market Cap | $39.8B |
| Exchange | NASDAQ |
| Country | US |
Profitability
| Return on Equity | 6.90% |
| Return on Invested Capital | 4.99% |
| Return on Assets | 3.13% |
| Gross Margin | 60.19% |
| Operating Margin | 15.52% |
| Net Margin | 8.80% |
Related companies: ALAB · ASX · CTSH · ERIC · FI · GFS · HPE
Explore sector: Technology · Semiconductors
More sections of MCHP: Overview · Financials · Statistics · Estimates · Technical · Ownership · News · Events
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