Microchip Technology Incorporated

SWX:MCHP Stock Report

Market Cap: CHF 41.5b

Microchip Technology Valuation

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

Valuation Score

1/6

Valuation Score 1/6

  • Below Future Cash Flow Value

  • Significantly Below Future Cash Flow Value

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Analyst Forecast

Share Price vs Future Cash Flow Value

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

Ultimate guide to DCF valuation for stock investing

Learn how to determine fair value like the best investors in the world.

Below Future Cash Flow Value: MCHP (CHF76.38) is trading above our estimate of future cash flow value (CHF64.54)

Significantly Below Future Cash Flow Value: MCHP is trading above our estimate of future cash flow value.

Key Valuation Metric

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

Key metric: As MCHP is barely profitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for MCHP. This is calculated by dividing MCHP's market cap by their current revenue.
What is MCHP's PS Ratio?
PS Ratio10.8x
SalesUS$4.71b
Market CapUS$51.84b

Price to Sales Ratio vs Peers

How does MCHP's PS Ratio compare to its peers?

The above table shows the PS ratio for MCHP vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average5.1x
AMS ams-OSRAM
0.6x5.63%CHF 1.9b
ON ON Semiconductor
7.9x9.30%US$47.7b
6723 Renesas Electronics
6.2x8.30%JP¥8.6t
STMPA STMicroelectronics
5.6x11.97%€60.3b
MCHP Microchip Technology
10.8x13.99%CHF 51.8b

Price-To-Sales vs Peers: MCHP is expensive based on its Price-To-Sales Ratio (10.8x) compared to the peer average (4.8x).

Historical Price to Sales Ratio

Historical Price to Sales Ratio compares a stock's price to its sales over time. Higher ratios indicate that investors are willing to pay more for the stock.

Fetching historical data

Price to Sales Ratio vs Industry

How does MCHP's PS Ratio compare vs other companies in the European Semiconductor Industry?

12 CompaniesPrice / SalesEstimated GrowthMarket Cap
MCHP 10.8xIndustry Avg. 5.1xNo. of Companies12PS03.26.49.612.816+
12 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: MCHP is expensive based on its Price-To-Sales Ratio (10.8x) compared to the European Semiconductor industry average (5x).

Price to Sales Ratio vs Fair Ratio

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

MCHP PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio10.8x
Fair PS Ratio6.5x

Price-To-Sales vs Fair Ratio: MCHP is expensive based on its Price-To-Sales Ratio (10.8x) compared to the estimated Fair Price-To-Sales Ratio (6.5x).

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 MCHP forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentCHF 79.20
CHF 90.65
+14.46%
12.71%CHF 108.07CHF 60.04n/a25
Jun ’27CHF 72.45
CHF 89.08
+22.95%
12.71%CHF 106.19CHF 59.00n/a25
May ’27CHF 71.27
CHF 69.41
-2.60%
13.96%CHF 90.80CHF 54.48n/a24
Apr ’27CHF 52.16
CHF 68.49
+31.30%
12.90%CHF 90.88CHF 54.53n/a24
Mar ’27CHF 57.05
CHF 67.02
+17.47%
12.66%CHF 89.00CHF 53.40n/a25
Feb ’27CHF 59.90
CHF 64.72
+8.04%
12.28%CHF 77.30CHF 46.38n/a25
Jan ’27CHF 51.24
CHF 59.37
+15.87%
11.70%CHF 69.44CHF 44.19n/a25
Dec ’26CHF 41.27
CHF 58.76
+42.37%
12.33%CHF 70.21CHF 44.68n/a25
Nov ’26n/a
CHF 61.31
0%
12.16%CHF 72.42CHF 48.28n/a25
Oct ’26n/a
CHF 60.50
0%
12.58%CHF 71.64CHF 47.76n/a25
Sep ’26n/a
CHF 61.63
0%
11.86%CHF 72.11CHF 48.08n/a24
Aug ’26n/a
CHF 59.79
0%
13.38%CHF 71.55CHF 45.31n/a24
Jul ’26n/a
CHF 53.69
0%
11.64%CHF 67.35CHF 39.62n/a24
Jun ’26n/a
CHF 52.55
0%
10.42%CHF 61.70CHF 41.14CHF 72.4523
May ’26n/a
CHF 48.48
0%
16.96%CHF 57.69CHF 28.85CHF 71.2723
Apr ’26n/a
CHF 58.03
0%
10.28%CHF 70.76CHF 46.88CHF 52.1623
Mar ’26n/a
CHF 57.83
0%
11.21%CHF 72.29CHF 45.18CHF 57.0523
Feb ’26n/a
CHF 70.69
0%
14.18%CHF 85.90CHF 50.63CHF 59.9024
Jan ’26n/a
CHF 74.63
0%
11.96%CHF 85.54CHF 54.02CHF 51.2424
Dec ’25n/a
CHF 75.31
0%
10.40%CHF 86.85CHF 62.04CHF 41.2725
Nov ’25n/a
CHF 79.06
0%
10.72%CHF 90.81CHF 60.54n/a25
Oct ’25n/a
CHF 78.60
0%
10.62%CHF 88.92CHF 63.52n/a25
Sep ’25n/a
CHF 80.93
0%
10.09%CHF 91.01CHF 65.01n/a25
Aug ’25n/a
CHF 89.67
0%
9.70%CHF 102.53CHF 67.76n/a25
Jul ’25n/a
CHF 89.54
0%
9.30%CHF 103.31CHF 68.27n/a26
Jun ’25n/a
CHF 89.72
0%
9.15%CHF 103.90CHF 68.66n/a25
CHF 91.91
Fair Value
16.9% undervalued intrinsic discount
25
Number of Analysts

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2026/06/17 03:23
End of Day Share Price 2026/06/17 00:00
Earnings2026/03/31
Annual Earnings2026/03/31

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 41 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
Timothy LukeBarclays
Thomas O'MalleyBarclays