Historical Valuation
Microchip Technology Inc (MCHP) is now in the Fair zone, suggesting that its current forward PE ratio of 32.60 is considered Fairly compared with the five-year average of 24.66. The fair price of Microchip Technology Inc (MCHP) is between 37.32 to 88.12 according to relative valuation methord.
Relative Value
Fair Zone
37.32-88.12
Current Price：73.53
Fair
P/E
EV/EBITDA
EV/EBIT
P/S
P/OCF
P/FCF
1Y
3Y
5Y
Trailing
Forward
Microchip Technology Inc (MCHP) has a current Price-to-Book (P/B) ratio of 5.25. Compared to its 3-year average P/B ratio of 6.07 , the current P/B ratio is approximately -13.53% higher. Relative to its 5-year average P/B ratio of 6.46, the current P/B ratio is about -18.78% higher. Microchip Technology Inc (MCHP) has a Forward Free Cash Flow (FCF) yield of approximately 2.15%. Compared to its 3-year average FCF yield of 5.04%, the current FCF yield is approximately -57.43% lower. Relative to its 5-year average FCF yield of 5.28% , the current FCF yield is about -59.38% lower.
P/B
Median3y
6.07
Median5y
6.46
FCF Yield
Median3y
5.04
Median5y
5.28
Competitors Valuation Multiple
AI Analysis for MCHP
The average P/S ratio for MCHP competitors is 10.07, providing a benchmark for relative valuation. Microchip Technology Inc Corp (MCHP.O) exhibits a P/S ratio of 7.06, which is -29.85% above the industry average. Given its robust revenue growth of -2.01%, this premium appears unsustainable.
Performance Decomposition
AI Analysis for MCHP
1Y
3Y
5Y
Market capitalization of MCHP increased by 0.00% over the past 1 year. The primary factor behind the change was an decrease in Unknown from 0.00 to 0.00.
The secondary factor is the Unknown, contributed 0.00%to the performance.
Overall, the performance of MCHP in the past 1 year is driven by Unknown.
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Frequently Asked Questions
Is MCHP currently overvalued or undervalued?
Microchip Technology Inc (MCHP) is now in the Fair zone, suggesting that its current forward PE ratio of 32.60 is considered Fairly compared with the five-year average of 24.66. The fair price of Microchip Technology Inc (MCHP) is between 37.32 to 88.12 according to relative valuation methord.
What is Microchip Technology Inc (MCHP) fair value?
MCHP's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average , adjusted by weights. The fair price of Microchip Technology Inc (MCHP) is between 37.32 to 88.12 according to relative valuation methord.
How does MCHP's valuation metrics compare to the industry average?
The average P/S ratio for MCHP's competitors is 10.07, providing a benchmark for relative valuation. Microchip Technology Inc Corp (MCHP) exhibits a P/S ratio of 7.06, which is -29.85% above the industry average. Given its robust revenue growth of -2.01%, this premium appears unsustainable.
What is the current P/B ratio for Microchip Technology Inc (MCHP) as of Jan 09 2026?
As of Jan 09 2026, Microchip Technology Inc (MCHP) has a P/B ratio of 5.25. This indicates that the market values MCHP at 5.25 times its book value.
What is the current FCF Yield for Microchip Technology Inc (MCHP) as of Jan 09 2026?
As of Jan 09 2026, Microchip Technology Inc (MCHP) has a FCF Yield of 2.15%. This means that for every dollar of Microchip Technology Inc’s market capitalization, the company generates 2.15 cents in free cash flow.
What is the current Forward P/E ratio for Microchip Technology Inc (MCHP) as of Jan 09 2026?
As of Jan 09 2026, Microchip Technology Inc (MCHP) has a Forward P/E ratio of 32.60. This means the market is willing to pay $32.60 for every dollar of Microchip Technology Inc’s expected earnings over the next 12 months.
What is the current Forward P/S ratio for Microchip Technology Inc (MCHP) as of Jan 09 2026?
As of Jan 09 2026, Microchip Technology Inc (MCHP) has a Forward P/S ratio of 7.06. This means the market is valuing MCHP at $7.06 for every dollar of expected revenue over the next 12 months.