MCHP Relative Valuation
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. If the market price exceeds this fair value range, MCHP is overvalued; if below, it's undervalued.
Historical Valuation
Microchip Technology Inc (MCHP) is now in the Fair zone, suggesting that its current forward PE ratio of 32.05 is considered Fairly compared with the five-year average of 24.40. The fair price of Microchip Technology Inc (MCHP) is between 29.10 to 73.75 according to relative valuation methord.
Relative Value
Fair Zone
29.10-73.75
Current Price：63.61
Fair
32.21
PE
1Y
3Y
5Y
Trailing
Forward
20.95
EV/EBITDA
Microchip Technology Inc. (MCHP) has a current EV/EBITDA of 20.95. The 5-year average EV/EBITDA is 19.28. The thresholds are as follows: Strongly Undervalued below 3.91, Undervalued between 3.91 and 11.59, Fairly Valued between 26.96 and 11.59, Overvalued between 26.96 and 34.65, and Strongly Overvalued above 34.65. The current Forward EV/EBITDA of 20.95 falls within the Historic Trend Line -Fairly Valued range.
26.68
EV/EBIT
Microchip Technology Inc. (MCHP) has a current EV/EBIT of 26.68. The 5-year average EV/EBIT is 21.42. The thresholds are as follows: Strongly Undervalued below 2.89, Undervalued between 2.89 and 12.16, Fairly Valued between 30.68 and 12.16, Overvalued between 30.68 and 39.95, and Strongly Overvalued above 39.95. The current Forward EV/EBIT of 26.68 falls within the Historic Trend Line -Fairly Valued range.
6.92
PS
Microchip Technology Inc. (MCHP) has a current PS of 6.92. The 5-year average PS is 6.41. The thresholds are as follows: Strongly Undervalued below 3.27, Undervalued between 3.27 and 4.84, Fairly Valued between 7.97 and 4.84, Overvalued between 7.97 and 9.54, and Strongly Overvalued above 9.54. The current Forward PS of 6.92 falls within the Historic Trend Line -Fairly Valued range.
24.29
P/OCF
Microchip Technology Inc. (MCHP) has a current P/OCF of 24.29. The 5-year average P/OCF is 19.70. The thresholds are as follows: Strongly Undervalued below 4.33, Undervalued between 4.33 and 12.01, Fairly Valued between 27.38 and 12.01, Overvalued between 27.38 and 35.06, and Strongly Overvalued above 35.06. The current Forward P/OCF of 24.29 falls within the Historic Trend Line -Fairly Valued range.
27.06
P/FCF
Microchip Technology Inc. (MCHP) has a current P/FCF of 27.06. The 5-year average P/FCF is 22.77. The thresholds are as follows: Strongly Undervalued below 5.24, Undervalued between 5.24 and 14.01, Fairly Valued between 31.53 and 14.01, Overvalued between 31.53 and 40.30, and Strongly Overvalued above 40.30. The current Forward P/FCF of 27.06 falls within the Historic Trend Line -Fairly Valued range.
Microchip Technology Inc (MCHP) has a current Price-to-Book (P/B) ratio of 5.13. Compared to its 3-year average P/B ratio of 6.10 , the current P/B ratio is approximately -15.89% higher. Relative to its 5-year average P/B ratio of 6.49, the current P/B ratio is about -20.86% higher. Microchip Technology Inc (MCHP) has a Forward Free Cash Flow (FCF) yield of approximately 0.00%. Compared to its 3-year average FCF yield of 5.19%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of 5.33% , the current FCF yield is about -100.00% lower.
5.18
P/B
Median3y
6.10
Median5y
6.49
2.19
FCF Yield
Median3y
5.19
Median5y
5.33
Competitors Valuation Multiple
The average P/S ratio for MCHP's competitors is 1.16, providing a benchmark for relative valuation. Microchip Technology Inc Corp (MCHP) exhibits a P/S ratio of , which is -100.00% above the industry average. Given its robust revenue growth of -2.01%, this premium appears unsustainable.
P/S
P/E
EV/EBITDA
EV/EBIT
P/S
Revenue Growth
Market Cap
Performance Decomposition
1Y
3Y
5Y
Market capitalization of MCHP increased by 13.70% over the past 1 year. The primary factor behind the change was an decrease in P/E Change from -88.58 to -142.98.
The secondary factor is the Revenue Growth, contributed -2.01%to the performance.
Overall, the performance of MCHP in the past 1 year is driven by P/E Change. Which is more unsustainable.
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FAQ
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