MCHP PE Ratio & Valuation, Is MCHP Overvalued

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 25.16. The fair price of Microchip Technology Inc (MCHP) is between 28.56 to 73.94 according to relative valuation method.

Relative Value

Fair Zone

28.56-73.94

Current Price：65.79

Fair

P/E

EV/EBITDA

EV/EBIT

P/S

P/OCF

P/FCF

Trailing

Forward

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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 6.02, the current P/B ratio is approximately -12.76% higher. Relative to its 5-year average P/B ratio of 6.42, the current P/B ratio is about -18.29% 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 4.91%, the current FCF yield is approximately -56.30% lower. Relative to its 5-year average FCF yield of 5.31%, the current FCF yield is about -59.58% lower.

Competitors Valuation Multiple

AI Analysis

The average P/S ratio for MCHP competitors is 3.61, providing a benchmark for relative valuation. Microchip Technology Inc Corp (MCHP.O) exhibits a P/S ratio of 7.06, which is 95.87% above the industry average. Given its robust revenue growth of 15.59%, this premium appears unsustainable.

P/E

P/S

EV/EBITDA

EV/EBIT

Earnings Growth

Market Cap

Performance Decomposition

AI Analysis

Market capitalization of MCHP increased by 0.00% over the past 1 year(s). 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(s) is driven by Unknown.

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Frequently Asked Questions

Is MCHP currently overvalued or undervalued?

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 28.56 to 73.94 according to relative valuation method.

How does MCHP's valuation metrics compare to the industry average?

The average P/S ratio for MCHP's competitors is 3.61, providing a benchmark for relative valuation. Microchip Technology Inc Corp (MCHP) exhibits a P/S ratio of 7.06, which is 95.87% above the industry average. Given its robust revenue growth of 15.59%, this premium appears unsustainable.

What is the current P/B ratio for Microchip Technology Inc (MCHP) as of Mar 12 2026?

As of Mar 12 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 Mar 12 2026?

As of Mar 12 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 Mar 12 2026?

As of Mar 12 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 Mar 12 2026?

As of Mar 12 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.

MCHP Valuation