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 Fair zone, suggesting that its current forward PS ratio of 4.24 is considered Fairly compared with the five-year average of 9.27. The fair price of Micron Technology Inc (MU) is between 306.01 to 386.88 according to relative valuation methord.

Relative Value

Fair Zone

306.01-386.88

Current Price：343.43

Fair

8.44

5.46

EV/EBITDA

Micron Technology Inc. (MU) has a current EV/EBITDA of 5.46. The 5-year average EV/EBITDA is 8.91. The thresholds are as follows: Strongly Undervalued below -3.31, Undervalued between -3.31 and 2.80, Fairly Valued between 15.02 and 2.80, Overvalued between 15.02 and 21.13, and Strongly Overvalued above 21.13. The current Forward EV/EBITDA of 5.46 falls within the Historic Trend Line -Fairly Valued range.

7.02

EV/EBIT

Micron Technology Inc. (MU) has a current EV/EBIT of 7.02. The 5-year average EV/EBIT is 6.83. The thresholds are as follows: Strongly Undervalued below -26.92, Undervalued between -26.92 and -10.05, Fairly Valued between 23.70 and -10.05, Overvalued between 23.70 and 40.57, and Strongly Overvalued above 40.57. The current Forward EV/EBIT of 7.02 falls within the Historic Trend Line -Fairly Valued range.

4.24

Micron Technology Inc. (MU) has a current PS of 4.24. The 5-year average PS is 3.21. The thresholds are as follows: Strongly Undervalued below 1.96, Undervalued between 1.96 and 2.59, Fairly Valued between 3.84 and 2.59, Overvalued between 3.84 and 4.46, and Strongly Overvalued above 4.46. The current Forward PS of 4.24 falls within the Overvalued range.

7.69

P/OCF

Micron Technology Inc. (MU) has a current P/OCF of 7.69. The 5-year average P/OCF is 8.50. The thresholds are as follows: Strongly Undervalued below -0.49, Undervalued between -0.49 and 4.01, Fairly Valued between 13.00 and 4.01, Overvalued between 13.00 and 17.49, and Strongly Overvalued above 17.49. The current Forward P/OCF of 7.69 falls within the Historic Trend Line -Fairly Valued range.

13.67

P/FCF

Micron Technology Inc. (MU) has a current P/FCF of 13.67. The 5-year average P/FCF is 22.93. The thresholds are as follows: Strongly Undervalued below -116.00, Undervalued between -116.00 and -46.53, Fairly Valued between 92.40 and -46.53, Overvalued between 92.40 and 161.86, and Strongly Overvalued above 161.86. The current Forward P/FCF of 13.67 falls within the Historic Trend Line -Fairly Valued range.

Micron Technology Inc (MU) has a current Price-to-Book (P/B) ratio of 6.04. Compared to its 3-year average P/B ratio of 2.41 , the current P/B ratio is approximately 150.79% higher. Relative to its 5-year average P/B ratio of 2.17, the current P/B ratio is about 177.83% higher. Micron Technology Inc (MU) has a Forward Free Cash Flow (FCF) yield of approximately 1.31%. Compared to its 3-year average FCF yield of -1.85%, the current FCF yield is approximately -170.95% lower. Relative to its 5-year average FCF yield of 0.18% , the current FCF yield is about 632.42% lower.

6.04

P/B

Median3y

2.41

Median5y

2.17

1.31

FCF Yield

Median3y

-1.85

Median5y

0.18

Competitors Valuation Multiple

The average P/S ratio for MU's competitors is 7.42, providing a benchmark for relative valuation. Micron Technology Inc Corp (MU) exhibits a P/S ratio of 4.24, which is -42.88% above the industry average. Given its robust revenue growth of 56.65%, this premium appears sustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

Revenue Growth

Market Cap

Performance Decomposition

Market capitalization of MU increased by 276.40% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 12.43 to 29.93.

The secondary factor is the Margin Expansion, contributed 78.90%to the performance.

Overall, the performance of MU in the past 1 year is driven by P/E Change. Which is more unsustainable.

56.65%

8.71B → 13.64B

Revenue Growth

78.90%

21.47 → 38.41

Margin Expansion

140.85%

12.43 → 29.93

P/E Change

276.40%

91.24 → 343.43

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 306.01 to 386.88 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 Jan 07 2026?

As of Jan 07 2026, Micron Technology Inc (MU) has a P/B ratio of 6.04. This indicates that the market values MU at 6.04 times its book value.

What is the current FCF Yield for Micron Technology Inc (MU) as of Jan 07 2026?

As of Jan 07 2026, Micron Technology Inc (MU) has a FCF Yield of 1.31%. This means that for every dollar of Micron Technology Inc’s market capitalization, the company generates 1.31 cents in free cash flow.

What is the current Forward P/E ratio for Micron Technology Inc (MU) as of Jan 07 2026?

As of Jan 07 2026, Micron Technology Inc (MU) has a Forward P/E ratio of 8.44. This means the market is willing to pay $8.44 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 Jan 07 2026?

As of Jan 07 2026, Micron Technology Inc (MU) has a Forward P/S ratio of 4.24. This means the market is valuing MU at $4.24 for every dollar of expected revenue over the next 12 months.

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