Microchip Technology Incorporated

BRSE:MCP Stock Report

Market Cap: CHF 21.3b

Microchip Technology Valuation

Is MCP undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of MCP when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Discounted Cash Flow
Simply Wall St
CHF 39.82
Fair Value
20.4% undervalued intrinsic discount
23
Number of Analysts

Below Fair Value: MCP (CHF31.72) is trading below our estimate of fair value (CHF39.82)

Significantly Below Fair Value: MCP is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for MCP?

Key metric: As MCP is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for MCP. This is calculated by dividing MCP's market cap by their current earnings.
What is MCP's PE Ratio?
PE Ratio83.4x
EarningsUS$308.80m
Market CapUS$25.77b

Price to Earnings Ratio vs Peers

How does MCP's PE Ratio compare to its peers?

The above table shows the PE ratio for MCP vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average16.8x
STMPA STMicroelectronics
18.8x22.9%€18.2b
3711 ASE Technology Holding
16.9x24.9%NT$582.4b
2303 United Microelectronics
12.7x9.7%NT$565.8b
6723 Renesas Electronics
18.8x20.1%JP¥3.1t
MCP Microchip Technology
83.4x40.6%CHF 25.8b

Price-To-Earnings vs Peers: MCP is expensive based on its Price-To-Earnings Ratio (83.4x) compared to the peer average (17.1x).

Price to Earnings Ratio vs Industry

How does MCP's PE Ratio compare vs other companies in the European Semiconductor Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
MCP 83.4xIndustry Avg. 19.5xNo. of Companies5PE01224364860+
0 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: MCP is expensive based on its Price-To-Earnings Ratio (83.4x) compared to the European Semiconductor industry average (19.5x).

Price to Earnings Ratio vs Fair Ratio

What is MCP's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

MCP PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio83.4x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate MCP's Price-To-Earnings Fair Ratio for valuation analysis.

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst MCP forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Currentn/a
CHF 48.62
0%
17.0%CHF 57.86CHF 28.93n/a23
Apr ’26n/a
CHF 58.03
0%
10.3%CHF 70.76CHF 46.88n/a23
Mar ’26n/a
CHF 57.83
0%
11.2%CHF 72.29CHF 45.18n/a23
Feb ’26n/a
CHF 70.69
0%
14.2%CHF 85.90CHF 50.63n/a24
Jan ’26n/a
CHF 74.63
0%
12.0%CHF 85.54CHF 54.02n/a24
Dec ’25n/a
CHF 75.31
0%
10.4%CHF 86.85CHF 62.04n/a25
Nov ’25n/a
CHF 79.06
0%
10.7%CHF 90.81CHF 60.54n/a25
Oct ’25n/a
CHF 78.60
0%
10.6%CHF 88.92CHF 63.52n/a25
Sep ’25n/a
CHF 80.93
0%
10.1%CHF 91.01CHF 65.01n/a25
Aug ’25n/a
CHF 89.67
0%
9.7%CHF 102.53CHF 67.76n/a25
Jul ’25n/a
CHF 89.54
0%
9.3%CHF 103.31CHF 68.27n/a26
Jun ’25n/a
CHF 89.72
0%
9.1%CHF 103.90CHF 68.66n/a25
May ’25n/a
CHF 85.47
0%
9.2%CHF 97.43CHF 69.85n/a26
Apr ’25n/a
CHF 80.29
0%
9.4%CHF 91.83CHF 65.59n/a26
Mar ’25n/a
CHF 80.29
0%
9.4%CHF 91.83CHF 65.59n/a26
Feb ’25CHF 73.36
CHF 79.53
+8.4%
9.7%CHF 90.06CHF 64.33n/a24
Jan ’25n/a
CHF 77.86
0%
10.9%CHF 95.77CHF 63.56n/a25
Dec ’24n/a
CHF 77.63
0%
10.4%CHF 96.14CHF 63.80n/a25
Nov ’24n/a
CHF 85.50
0%
10.2%CHF 99.17CHF 68.52n/a25
Oct ’24n/a
CHF 88.12
0%
9.3%CHF 100.69CHF 69.57n/a25
Sep ’24n/a
CHF 84.31
0%
8.8%CHF 96.03CHF 66.35n/a25
Aug ’24n/a
CHF 85.34
0%
11.0%CHF 109.01CHF 66.28n/a25
Jul ’24n/a
CHF 85.61
0%
12.6%CHF 113.58CHF 69.05n/a24
Jun ’24n/a
CHF 84.01
0%
12.5%CHF 111.32CHF 67.68n/a24
May ’24n/a
CHF 85.86
0%
11.1%CHF 111.51CHF 67.80n/a24
AnalystConsensusTarget
Consensus Narrative from 23 Analysts
CHF 38.94
Fair Value
18.6% undervalued intrinsic discount
23
Number of Analysts

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2025/05/04 19:39
End of Day Share Price 2025/04/07 00:00
Earnings2024/12/31
Annual Earnings2024/03/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* Example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.

Analyst Sources

Microchip Technology Incorporated is covered by 56 analysts. 23 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
James KelleherArgus Research Company
Ishan MajumdarBaptista Research
Timothy LukeBarclays