MU PE Ratio & Valuation,Is MU Overvalued

MU Relative Valuation

MU'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, MU is overvalued; if below, it's undervalued.

Historical Valuation

Micron Technology Inc (MU) is now in the Overvalued zone, suggesting that its current forward PS ratio of 4.64 is considered Overvalued compared with the five-year average of 9.43. The fair price of Micron Technology Inc (MU) is between 186.78 to 240.77 according to relative valuation methord. Compared to the current price of 241.14 USD , Micron Technology Inc is Overvalued By 0.16%.

Relative Value

Fair Zone

186.78-240.77

Current Price：241.14

0.16%

Overvalued

13.26

7.30

EV/EBITDA

Micron Technology Inc. (MU) has a current EV/EBITDA of 7.30. The 5-year average EV/EBITDA is 8.96. The thresholds are as follows: Strongly Undervalued below -3.21, Undervalued between -3.21 and 2.87, Fairly Valued between 15.04 and 2.87, Overvalued between 15.04 and 21.12, and Strongly Overvalued above 21.12. The current Forward EV/EBITDA of 7.30 falls within the Historic Trend Line -Fairly Valued range.

10.74

EV/EBIT

Micron Technology Inc. (MU) has a current EV/EBIT of 10.74. The 5-year average EV/EBIT is 6.96. The thresholds are as follows: Strongly Undervalued below -26.78, Undervalued between -26.78 and -9.91, Fairly Valued between 23.83 and -9.91, Overvalued between 23.83 and 40.70, and Strongly Overvalued above 40.70. The current Forward EV/EBIT of 10.74 falls within the Historic Trend Line -Fairly Valued range.

4.63

Micron Technology Inc. (MU) has a current PS of 4.63. The 5-year average PS is 3.22. The thresholds are as follows: Strongly Undervalued below 1.93, Undervalued between 1.93 and 2.58, Fairly Valued between 3.87 and 2.58, Overvalued between 3.87 and 4.52, and Strongly Overvalued above 4.52. The current Forward PS of 4.63 falls within the Strongly Overvalued range.

10.22

P/OCF

Micron Technology Inc. (MU) has a current P/OCF of 10.22. The 5-year average P/OCF is 8.57. The thresholds are as follows: Strongly Undervalued below -0.40, Undervalued between -0.40 and 4.09, Fairly Valued between 13.06 and 4.09, Overvalued between 13.06 and 17.54, and Strongly Overvalued above 17.54. The current Forward P/OCF of 10.22 falls within the Historic Trend Line -Fairly Valued range.

27.64

P/FCF

Micron Technology Inc. (MU) has a current P/FCF of 27.64. The 5-year average P/FCF is 23.38. The thresholds are as follows: Strongly Undervalued below -115.40, Undervalued between -115.40 and -46.01, Fairly Valued between 92.76 and -46.01, Overvalued between 92.76 and 162.15, and Strongly Overvalued above 162.15. The current Forward P/FCF of 27.64 falls within the Historic Trend Line -Fairly Valued range.

Micron Technology Inc (MU) has a current Price-to-Book (P/B) ratio of 5.00. Compared to its 3-year average P/B ratio of 2.34 , the current P/B ratio is approximately 113.34% higher. Relative to its 5-year average P/B ratio of 2.14, the current P/B ratio is about 132.96% higher. Micron Technology Inc (MU) has a Forward Free Cash Flow (FCF) yield of approximately 0.62%. Compared to its 3-year average FCF yield of -1.86%, the current FCF yield is approximately -133.20% lower. Relative to its 5-year average FCF yield of 0.14% , the current FCF yield is about 334.80% lower.

5.00

P/B

Median3y

2.34

Median5y

2.14

0.62

FCF Yield

Median3y

-1.86

Median5y

0.14

Competitors Valuation Multiple

The average P/S ratio for MU's competitors is 6.65, providing a benchmark for relative valuation. Micron Technology Inc Corp (MU) exhibits a P/S ratio of 4.63, which is -30.34% above the industry average. Given its robust revenue growth of 46.00%, this premium appears sustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

Revenue Growth

Market Cap

Performance Decomposition

Market capitalization of MU increased by 186.53% over the past 1 year. The primary factor behind the change was an increase in Margin Expansion from 11.45 to 28.29.

The secondary factor is the Revenue Growth, contributed 46.00%to the performance.

Overall, the performance of MU in the past 1 year is driven by Margin Expansion. Which is more sustainable.

46.00%

7.75B → 11.32B

Revenue Growth

147.07%

11.45 → 28.29

Margin Expansion

-6.54%

33.99 → 31.77

P/E Change

186.53%

84.16 → 241.14

Mkt Cap Growth

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Frequently Asked Questions

Is Micron Technology Inc (MU) currently overvalued or undervalued?

What is Micron Technology Inc (MU) fair value?

MU'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 Micron Technology Inc (MU) is between 186.78 to 240.77 according to relative valuation methord.

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

What is the current P/B ratio for Micron Technology Inc (MU) as of Dec 15 2025?

As of Dec 15 2025, Micron Technology Inc (MU) has a P/B ratio of 5.00. This indicates that the market values MU at 5.00 times its book value.

What is the current FCF Yield for Micron Technology Inc (MU) as of Dec 15 2025?

As of Dec 15 2025, Micron Technology Inc (MU) has a FCF Yield of 0.62%. This means that for every dollar of Micron Technology Inc’s market capitalization, the company generates 0.62 cents in free cash flow.

What is the current Forward P/E ratio for Micron Technology Inc (MU) as of Dec 15 2025?

As of Dec 15 2025, Micron Technology Inc (MU) has a Forward P/E ratio of 13.26. This means the market is willing to pay $13.26 for every dollar of Micron Technology Inc’s expected earnings over the next 12 months.

What is the current Forward P/S ratio for Micron Technology Inc (MU) as of Dec 15 2025?

As of Dec 15 2025, Micron Technology Inc (MU) has a Forward P/S ratio of 4.64. This means the market is valuing MU at $4.64 for every dollar of expected revenue over the next 12 months.

MU Valuation